Online:
Visits:
Stories:
Profile image
By Market Daily News
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

The Most Unlikely Emerging Market Ripe for Insider Trading

Monday, October 12, 2015 12:09
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Sports BettingBen Benoy:  If you’re like me, you’re probably sick and tired of all the DraftKings and FanDuel commercials blasted on every major televised sporting event this fall.

Just who are these people? And how did they get the cash to run ad campaigns for every single college and pro league football, basketball, and baseball game?

Well, they fall into a brand new emerging market called “Daily Fantasy Sports” – or DFS for short.

But don’t underestimate them – this new industry is currently pulling in millions of dollars in venture capital.

Basically, players get to act as general managers in a smaller version of the traditional season-long fantasy sports league.

Entry fees can run just a few bucks. And if players pick the right team, they can win big – the top prize is $1 million every week.

But isn’t this gambling? How is this legally available online in most states?

That’s because it’s not classified as a game of chance, but a game of skill.

With the help of this legal loophole, the industry has attracted over half a billion dollars to date. And thanks to extremely high payout ratios, players have joined by the truckload.

For a market estimated at 51.8 million players for 2015, DraftKings is expected to dish out $1 billion. FanDuel, its competitor, is expected to pay $2 billion.

As one website put it, this is a climate ripe for insider trading.

The guys raking in the cash are the ones using analytics systems – much like I do in BioTech Intel Trader – to get a leg up on the competition.

Their algorithmic models are so precise, they can tell you if a player is projected to have a good week based on the length of grass on the field!

If you take a step back and look at what’s happening, we’re basically turning into a data driven world, where analytics are king for gaining insight and looking into the future.

This new industry, DFS, is just another example of how data scientists are mining hordes of statistics, and developing useful, profitable information to gain an edge.

It just goes to show: analytics can be used to beat most in this market, and the stock market.

I personally use the same approach to predict stock price movement using my own analytics engine, the social media collective intelligence system.

The way the stock market’s trading all over the place, I might just use it on this new DFS sensation.

Can anyone say: “lower risk, greater payout?”

So what do you think?

Join the conversation instantly with Facebook Comments below:

This article is brought to you courtesy of Ben Benoy.

You are viewing a republication of Market Daily News content. You can find full Market Daily News articles on (www.marketdailynews.com)



Source: http://marketdailynews.com/2015/10/12/the-most-unlikely-emerging-market-ripe-for-insider-trading/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.