As legal betting markets continue to open up throughout the country, the options on where investors can lay their money keep widening. Besides the incredible amount of sports markets that are open, bookmakers also offer a wide range of other betting categories that are often referred to as entertainment betting markets.
Of course, sports are also entertainment, essentially. But the fact that we’re talking about live, non-scripted competitive events with a ton of historical performance data to base decisions on is what makes sports betting markets so lively, unpredictable (when you don’t know what you’re doing) and interesting to investors.
But are there other markets out there that investors should be interested in? Does it make sense to put money on reality TV show results, elections, or Counter Strike matches? Read on for our overview on the topic!
Trading in e-sports
Let’s begin with the most interesting one. Quite frankly, the only reason that e-sports are being talked about in this category, as somehow separate from traditional sports, is that the large public doesn’t necessarily perceive games such as CS:GO or League of Legends to be “actual sports”.
But in their core, e-sports have all the same characteristics as traditional competitive sports that have spawned lively sports betting markets. Top-level competitors are going against each other in leagues and tournaments, lots of people are watching the games, and there’s plenty of data available on how players have performed historically.
Because of their resemblance to traditional sports, e-sports betting markets are lively, and one could definitely develop a winning e-sports trading system.
Here’s what we concluded on the topic when we listed e-sports as one of the sports investing trends for 2020:
E-sports have become hugely popular in recent years, and that popularity is set to trend in sports betting as well. According to one estimate, the amount of money wagered worldwide in e-sports could reach up to $12.9 billion this year. With the global betting market estimated to be at a total of $250 billion wagered, that $12.9 billion might seem like a surprisingly significant chunk of the whole pot.
Games such as League of Legends, CS:GO, Fortnite, or Dota 2 might not ring the bell for an average sports fan right now, but e-sports look like a mainstream trend of the future. Hugely popular with younger crowds, the biggest e-sports tournaments of last year attracted millions of viewers and had payouts of tens of millions of dollars. It’s no wonder that the betting market in e-sports is heating up as well.
A lot of the smart money probably hasn’t found its way to this new market yet. If you know the landscape of one or more of the popular games, testing out well-researched sports trading systems could prove to be very profitable here.
Political betting markets
We’ve also touched on political betting markets when we wrote about the odds for the 2020 US presidential election.
Here’s why we thought that the market might not be very interesting to sports traders:
Having a betting market available for the US presidential election is certainly interesting and fun. But it’s incredibly hard to build solid investment cases in this market due to the immense complexity of variables that can affect the result of the election.
Couple that with very small samples of data available and an ever-changing political landscape, and you’ll see why we don’t exactly see a lot of great opportunities in this market.
TV & movie betting markets
Yep, betting on all sorts of TV shows and movies is also possible. Sounds silly? That’s because it probably is.
You could, for example, bet on who takes home the “final rose” on The Bachelor, or whether or not a character will die in a big upcoming action movie.
Such markets are not very interesting to smart investors. There’s not really a lot of data you can back your decisions on in scripted entertainment. We would advise to stay away from this category.
Award show betting markets
Investing in the results of major award shows, such as the Oscars or the Grammys, might not sound that interesting to investors. But could it be possible to find a data-driven system in this category?
For example, what if we start looking back on the Academy Award winners of the past and whether there has been a correlation between box office figures, favorable reviews from certain sources of authority, and previous awards won? Could the structure of the jury be an indicator, or could the hot topics and trends of the year be predicted to influence decision-making?
While we don’t have any interesting data to show here, maybe this category is not as silly as it might first seem.
We’re always looking for new ways to find an edge in the market. But we can also say that it’s safe to start from where there are proven profits. So before venturing into the markets discussed above, have a look at the winning systems we’ve developed for baseball, basketball and football.
And to learn all you need to know about building winning sports trading systems, don’t forget to check out John Todora’s new book – “Zero Correlation Investing – The Score Metrics Secret”. It’s currently on sale for a limited time, so go get your copy now!
The ScoreMetrics Lab is the engine that runs the Sports Trading System operation, consisting of a team of researchers and writers who are constantly testing and retesting algorithms. They work hand in hand with our Head Trader and Creator of ScoreMetrics, John Todora to help find new breakthroughs and develop new systems.