Beware The Online Betting Hustle

Summary

The article "Beware The Online Betting Hustle" warns about the pitfalls of online sports betting, highlighting the financial risks and the misleading nature of betting advertisements.

Abstract

The article discusses the shift in sports betting from illegal bookies to a legalized online industry, which is now prevalent in 18 states including New York. It criticizes the aggressive advertising strategies used by betting companies and the government's role in sanctioning this activity. The author points out that the high cost of these ad campaigns is sustained by the losses of average bettors, who are likely to lose between $5 to$ 10 for every $100 wagered. The only way to consistently beat the odds is through arbitrage betting, which involves exploiting odds disparities across different betting platforms. However, this method is complex and risky, as bets may be rejected or the bettor could be banned for using this strategy. The article also cautions against promotional offers that seem too good to be true, suggesting that betting companies have safeguards in place to prevent quick profits by bettors. It concludes by advising caution, as the betting industry profits by ensuring most bettors lose money, and it emphasizes the irony of ads that encourage responsible gambling while also enticing viewers to bet.

Opinions

The author views online betting as a government-sanctioned trap that preys on the average bettor.
Advertising for online betting is seen as excessive and predatory, designed to lure in as many people as possible.
The average bettor is likely to lose money over time, which is how betting companies remain profitable.
Arbitrage betting is acknowledged as a method to win consistently, but it is not without its complexities and risks.
Promotional offers from betting companies are considered schemes to hook bettors rather than genuine opportunities to win big.
The author expresses skepticism about the sincerity of betting companies' messages about responsible gambling, given their aggressive marketing tactics.

It’s a government-sanctioned trap

Back in the old days, a guy who wanted to bet on a sporting event had to find a bent-nosed illegal bookie operating out of the back room of a supposedly legitimate storefront to place that bet. But those days are long gone. Just recently, New York has become one of 18 states where online betting on sports events has become legal.

If you want to know how much money is in this for the vendor and government, you need only look at the preponderance of advertising — and even half-hour shows — dedicated to sucking in the masses. It’s amazing — and atrocious in my view.

Ask yourself this: How can these organizations spend so much money on their ad campaigns and still make a buck? And the answer is off the backs of the suckers who bet with them. What would that tell you? Yup! The average bettor is a loser over time. The probability is that for every $100 a bettor places, he’ll lose $5 — $10. That’s the way the payouts are set up.

A bettor can be sure to beat those odds in only one manner. It’s called arbitrage betting. Here’s how it works: Not every sports-betting outfit posts the same odds on a game as their competitors do. If you can find a disparity large enough (more than the 5–10%) to bet both sides of a contest, you’re guaranteed to win a small amount. Math whizzes charge monthly dues to access software programs they’ve written to find these unique arbitrage positions.

But it’s not that simple. One of your bets might not go through, leaving you exposed on one side or the other. And betting organizations share information on arbitrage bettors, and will eventually 86 them once they figure out what the savvy bettor is doing. No hustler likes to get hustled, essentially. To win at arbitrage takes work — and some risk. Researching the scene when online gambling became legal in New York, I opted not to take the plunge. It’s bad enough that I’m in the stock market. You get the idea.

With respect to all those come-ons that say bet $5 and win $250 — or deposit $1000 and we’ll match it with a free bet? Beware. Be very aware. Again, this is a scheme to suck you in. And while the setup does afford a new bettor a brief opportunity to cash in, the companies don’t make it easy to smash and dash with their money. If they did, they’d be out of business in a flash. Yeah, you could win the free bet. But they’re not gonna let you hit and run like that. The money will be added to your account. But you’ll have to do more betting to get it out.

The sublime becomes the ridiculous when a viewer of one of these ads sees the fine print at the end of the commercial admonishing bettors to only bet what they can afford. And there’s even a gamblers’ hotline to call when you spin out of control and lose your house — thanks to the extremely effective — albeit suspect — enticement the commercial truly is.

Bottom line: Watch your step with these guys. They don’t finance their ad campaigns and turn a profit by making bettors winners. Exactly the opposite, obviously. Nothing could be more evident.