Madness? A New Spin on Sports Betting

March 20, 2009

centsportsA longstanding controversy, the art of sports betting has been around as long as people have been playing sports.  And as the internet made gambling from anywhere in the world at any time an effortless, habit forming task, the controversy spread.  What is legal?

The sheer legality of gambling makes it appealing.  As I have said in the past, even negative publicity gets people’s attention.  And if you get their attention, you’re winning the battle.

Now, imagine you can take the concept of sports betting, and make it legal in some way.  Then, say you manage to do that and offer it online, where anyone with a computer and internet access can get to it, anytime.  Sounds like a pretty innovative way to start a business.

Well there are two websites of mention that are doing this, and seem to be doing it well.

First, there’s ESPN.com.  Their website has undergone a massive transformation over the past couple of months, with a clear focus on driving advertising dollars and boosting web traffic.  One very interesting way they have done this is by creating a “Streak for the Cash” contest.

Basically, Streak for the Cash offers up various sporting events that users can “bet” on by selecting the winners.  The first person to collect 25 wins in a row, wins $1 Million.  And it’s free to play.  What this does is brings people to the site over and over again throughout the course of the day/week/month that this contest is active.  The more hits they get, the more ads they can serve, the more money they’ll bring in.

Second, there’s a site most people are not as familiar with, CentSports.com.  I was introduced to CentSports through a friend who had gotten involved and was enjoying the experience.  Immediately I was intrigued.

CentSports operates like a traditional sports betting site, except that you cannot gamble with your own money, making it completely legal.  You open an account, and you get $0.10.  That 10 cents is yours to bet with on whatever you want.  You can build up a large bankroll over time, and whenever you go broke, they’ll put 10 cents back into your account.

Here’s the catch, even though the money you are using is completely free, you can cash out for real money once you get to a certain value.  They have tricky cash out rules, and you have to play for awhile to build up enough money to cash out, but its all very real.

How do they do this? Ads.  Companies have been quick to buy ads on the site, which get displayed with the user’s permission, and often.  The money from these ads supports the weekly payouts to “betters”, and keep the site going.  As the site gets more popular, the ads will definitely continue to get more valuable.

Both of these are examples of websites that are looking to capitalize on the popularity of gambling in a new way.  Make it free (which also means legal) and support yourself with ads.  We’ve seen this model work in many industries, and it looks to be a winning formula here as well.

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