Look out FanDuel and DraftKings: Here comes Tradesports. It’s a new wrinkle on U.S. sports wagering: a betting exchange. Say the New England Patriots are playing against the Kansas City Chiefs and you’ve got money on the Pats. Theoretically, you can match your bet with somebody who took action on the Chiefs. As Bloomberg explains it, “You buy a contract on the Patriots to win by at least 3, which might be offered for $48. If the Patriots cover, your shares settle to $100, and you win $52. If they fail, you lose your money.” You could sell your contract, too, but you’d better do it while your team is ahead or you’ll probably find precious few takers.
Intrade founder Ron Bernstein tried this concept before, several years ago, but it was restricted to fantasy sports and found relatively few takers. Now people are considered savvier about playing the market and legalized sports betting is sweeping the land. You try Tradesports for free during a one-week beta test, after which the site goes dormant until it’s licensed, hopefully next year. “As long as we can create an offering that isn’t too intimidating, we think there’s a really big niche in the professional trader market,” says Bernstein. Analyst Chris Grove of Eilers & Krejcik is skeptical: “That’s because there’s a fat middle of the market that is only willing to spend a few minutes of time comparison shopping, and then they want to get it done and go on with life.” Besides, you’ll only be able to trade with bettors in your own state. Bernstein’s not in a hurry, hoping to kickoff by the start of the next NFL season. (When else?)
* Black-market slot machines have been ruled illegal by Missouri regulators but enforcement is slow in coming. In one corner is TNT Amusements, which says that Midwest Petroleum Co. has ousted its devices in favor of slot-like ones from Torch Electronics, a case that is headed to court. Donald Trump campaigner Gregg Keller argues Torch’s case with a familiar brand of bravado: “Torch machines operate statewide to the benefit of dozens of family-owned small businesses and charitable organizations in the state. We will fight all big-government crony capitalist attempts to use state power rather than free market competition to pick winners and losers.”
One reason prosecutors are reluctant to act is that Torch VLTs show the outcome of the spin before the bet is placed, thereby eliminating the element of chance. As St. Charles County prosecutor Tim Lohmar puts it, “My view of the present state of the law is that by being able to have a predetermined outcome, that eliminates the chance aspect that would otherwise make these games illegal.” In addition to the courts, the Lege may get into the act. Two bills are in the hopper which would douse Torch. It’s too early to say how well they’ll fare but TNT has allies in the form of the Missouri Lottery and the casino industry, none of whom stand to have any love for Torch.
* Mohegan Gaming & Entertainment, which runs five casinos in as many states, posted a 21% pole-vault in revenues over 3Q19. Ray Pineault has been elevated from president of Mohegan Sun to regional 
president for the whole shooting match. Jeffrey Hamilton moves to fill Pineault’s newly vacant chair at the flagship property. MGM Springfield played the spider at the picnic, partly accountable for an 8% decline in Mohegan Sun revenues. Two new Canadian properties were largely responsible for the quarterly boost, bringing in $91 million. Foxwoods Resort Casino, top that.
* First came the robotic dealer. Now the dealer-less casino table. Pretty soon casinos will have eliminated all that pesky customer service from the gaming experience.
Jottings: One down, 16 to go. Missouri has signed off on Eldorado Resorts‘ acquisition of Caesars Entertainment … The Capital Group Cos. likes what it is seeing from Wynn Macau. It upped its ownership stake to 8%, making it the second-largest shareholder … That was quick. Donaco International CEO Paul Arbuckle is quitting after six months on the job. No need to send him a fruit basket yet: He gave six months’ notice, lending Donaco time for an orderly transition … Praise be! Circa has reached the halfway point of construction. Owner Derek Stevens says it’s on track for a December 2020 opening. Maybe Resorts World Las Vegas should hire him: He knows how to get things done.
