If Mark Cuban is betting on a particular business, then you can be sure that he’s on to something good, and more so, if Michael Jordan is doing the same thing too. Both men have joined others including Ted Leonsis to invest $44 million in the Swiss company, Sportradar, which is a part of the sports gambling industry. It is interesting to note that these three men are NBA owners. Incidentally, the current investment round in Sportradar is led by Leonsis’ private equity firm-Revolution Growth.
Sportradar AG counts the leading bookmakers all over the world among its customers and it provides them with information that can be used for sports gambling. Sports gambling is an established and legal activity in most parts of Europe and this company has a big role to play in keeping the wheels of the industry running. Every time a sports fan checks on a football game using his iPad, then they are probably getting a data feed generated by this company. Most of the athlete statistics available online are generated by this company.
The company also provides data management services to the NFL, NHL, and Nascar, in addition to leading US fantasy sports betting companies-FanDuel and DraftKings. Furthermore, it also has business associations with Twitter, Facebook and Google.
Sportradar operations in the United States are based out of Minneapolis. The business levels done by this company at present makes it a very good investment prospect indeed, but there is a lot more to the issue.
What is really interesting about this investment is that the company in question stands to make it big as and when sports betting is eventually legalised in the 46 states of the United States where it is not permitted. The sporting establishment in the country is firmly against making sports wagering legal because of fears that it will corrupt sports and destroy the fan’s faith in it. However, the Americans place huge amounts of unregulated wagers on sports and this money therefore, does not contribute to the exchequer. The NFL itself attracts $100 billion in illegal wagers every year.
There are growing calls to make sports wagering legal in the country. Furthermore, some states are also waging legal battles to make sports betting legal in the country. It seems to be only a matter of time before laws are amended in the United States and the Americans will be able to bet on their favourite sporting events legally. This will also give the industry the regulation that it very clearly needs. After all, markets that permit sports betting also have well-established methods in place to ensure that fraud is detected, or better still, prevented before it occurs.
Investors in Sportradar will definitely be able to cash in when the United States finally legalises sports betting since this company will have an enhanced role to play when the industry expands to include the truly massive American market. This development will definitely be welcomed by the American punters who are waiting for their favourite pastime to be made legal.