Become an Investor in Sports Betting

Sports betting and trading can provide an attractive possibility to investors as an alternative asset class. In most cases, strategies in sports betting markets are uncorrelated with traditional financial markets. Risk and volatility for a sports betting investment pretty much depend on the applied strategies as well as staking and portfolio management.

Can Sports Betting be Considered an Investment?

In the past there have been attempts of institutional investors in setting up hedge funds for sports betting and trading markets. One example of such hedge fund was Centaur Galileo, which collapsed in 2012. The fundamental problem for large investments into sports betting markets is limited liquidity. A UK horse racing market has typically a volume of around 500.000 GBP which is much less compared to traditional financial markets.

On a betting exchange market such as Betfair every win matches a loss on someone else's book. Probably only a small fraction of market participants are profitable on the long term. It takes lots of knowledge and experience to become successful, as well as the ability to adapt to new situations. On this website we focus on an approach towards sports betting and trading that is based on algorithms - algorithms that are tested on historical data. Of course a successful backtest does not guarantee positive returns in the future. In many cases it is still a good indicator for future returns. There are various other benefits when it comes to using algorithms: Taking out emotions, limiting losses and consistent betting results to just name a few. In our view, sports betting and trading based on algorithms offer a higher chance of positive returns on the long term. Also speaking from our past experience we consider it as a valid investment opportunity.

Starting off with an Investment in Algorithmic Sports Betting

As a sports betting investor you want to make profit with sports betting on the long term and in order to make profit you need to be able to beat the market. The market is created by many individuals: Some of them bet just for fun, some traders place orders manually based on their experience and preferences, some market participants simply follow the recommendation of tipster services and others prefer arbitrage betting. The approach that we promote on this website is a data-driven approach which includes strategies that can be expressed in code, backtesting of strategies on historical data and automated deployments of strategies as a betting or trading bot.

If you plan to invest into sports betting through algorithmic betting and trading, you need to get hold of a winning strategy. If you do not possess the skills to test betting ideas on historical data, you can hire a data analyst, data scientist or programmer to develop a backtesting engine to test betting strategies. There are individuals which are very interested in sports data modelling, possess the skills but do not have funding. Computer science, maths or physics students might be a good hire to support you with research on betting / trading strategies and the deployment of betting bots. A collaboration with such individuals can be the first step in a successful investment career. In such collaboration you might agree on a one off payment to compensate your hire for the research tasks. Another possible collaboration model is that you have an arrangement over a longer time frame where someone else brings in the data science and programming knowledge and you help with the funding. It is then possible to share the profits of trading strategies that are developed and deployed as an investment.

If you are interested in investing into algorithmic sports betting, please do not hesitate to contact us.