A Match Made in Handicapping Heaven:
Cyberspace Books and Las Vegas Agents
When the genie is out of the bottle, there is no telling how its newfound freedom might be exploited, but rest assured the maniacal little imp will have a profound effect heretofore unimagined.
So it is with the dramatic growth of online gaming. Blend the confluence of the Internet with punters’ urge to bet, add creation of cyberspace sportsbooks to satisfy that desire, and connecting the dots is a slam dunk. Emergence of the computer as a wagering tool, and development of software as enabling devices were the catalysts that resulted in a sports betting explosion during the last 10 years.
Once a niche activity limited primarily to sports enthusiasts who were willing to break the law in order to scratch their itch, today it is mainstream global commerce, courtesy of the Internet. As soon as technology was in place to support offshore betting, it took off like Road Runner with Wile E. Coyote on his tail.
In 1993, a handful of offshore stores handling action via toll-free phone calls drew an annual handle of less than $100 million. With the introduction of online action in the mid-‘90s, the industry got its sea legs. By 2003, online gaming handled in excess of $4 billion, according to the Government Accountability Office. In 2005, the number of Web gamblers in the U.S. will reach about 7.4 million, according to St. Louis-based River City Group.
But it was not just access to garden-variety sports betting which the Internet opened up. Post-up wagering with sophisticated, full-service online sportsbooks operating from jurisdictions where the business is legal is thriving under several variations. Many local stores in the U.S. are now farming out the operational aspect of the business to offshore books and just handling collection and payoffs.
The traditional concept of books offering credit, which was superseded by the rush offshore to start post-up shops, is making a comeback. In 10 years of relentless growth, frustrated U.S. bettors have been thumbing their noses at the notion that wagering on sports is illegal. And during that period, the business has come full circle.
It turns out that the costs associated with post-up shops are making the business more difficult than originally envisioned. Everything old is new again, and the newest permutation is that of agents representing online books to credit customers.
The agent, who is a middleman between the BM and many of its customers, has taken his act into the Information Age, and more seamlessly than ever merges the action via websites and emails instead of phone calls. Whether you believe the relationship between an agent and his customers is reciprocal or symbiotic, it is pragmatism and free enterprise all rolled into a single activity.
Las Vegas may no longer generate the biggest sports betting action, but it is still a beehive of activity and home to many agents for offshore sportsbooks. Arranging a meet in the desert to settle-up a betting tab is as commonplace as making a two-team parlay.
Recently, Sportsbook Scene met with an agent who set up shop here in Sin City. He represents three reputable offshore books, one that services his small- and medium-sized players; a larger shop that handles bigger players -- nickel and dime bettors -- and has slightly tighter lines; and a full service book that handles post-up business as well as a significant number of wiseguys and heavy hitters through its credit operations.
The agent, let’s call him Marty, agreed to give us a look at the inside day-to-day nitty-gritty of the business. In exchange, we agreed to let him troll the column for a few additional clients.
Marty refers to the books as his partners because unlike so many agents who have a standard “quarter sheet,” Marty has a better deal. “I’m straight 50-50 with my partners. I got it by negotiating. That’s my personality. I’ve been in sales, I’m persistent, and I have access to some fairly big bettors.” He cited some locals who are sports betting professionals as well as various well known touts and even a few out-of-state bookies.
When Marty first came to Vegas, his original intention was to start a sports service. “But when I did my homework, I realized how ugly the business can be and how overcrowded it was, so I passed. Meanwhile, I had a background in booking when I went to college in the Midwest.
“I had four or five guys, and realized the Internet and computers was a whole new way to bet. I put two and two together and figured why don’t I do this, it’s a great opportunity to tap into a huge and growing market.”
He hates the word bookie, and prefers to be known as an online sports broker. The work is not all that glamorous, he noted. “I’m brokering money through sports betting. I’m also brokering action because I rep the player and the book. Ideally, I'm bringing new accounts to my partners and growing their business as well as my own.
“Keeping track of everyone’s tab is detail work and requires computer smarts because that’s where all the activity is shown. Then collecting from losers requires people skills and is time consuming.”
When he gets a prospective customer, usually through personal recommendation but he will take unsolicited business if their references check out, he sets up an account. “I provide them with an account number, a credit line and the opportunity to bet 24 hours a day up to a certain, proscribed limit.”
Judging whether a bettor is good for his limit is the tricky part of the biz. “I have lots of industry contacts and ask about potential clients before taking anyone on. The best way to build is through referrals.” His customers run the gamut from square, to recreational, to wiseguy.
The general settlement figure is $500 to $2,500. “Three dimes is my max,” he stated.
Marty doesn’t beat every customer. “My personal limit is eight to 10 dimes. That’s enough for me. But in all my years, I’ve only had to cut off one guy. He was killing us in the NBA like for six weeks in a row. Took me for $12K, and we said ‘that’s enough.’”
He does lay off when he has an uncomfortable position. There are several reputable local stores and some offshore books with whom he does business. But essentially, given the potential for profits, he prefers to hold all the action himself.
With his business background, Marty feels this is an excellent way to make a living. “I thought it would be part time but the more involved I am, the more I look to the future. Sports wagering is something that will always be there. I don’t want to get greedy. You have to walk a fine line, and trust the people you deal with.”
He is not looking for heavy hitters who want to throw down five to 10 dimes a game. “I handle players who bet $20 a game up to two dimes. I’m willing to go a bit higher with certain clients.
“Collecting is the main thing. Once people are betting on credit, 80 percent of the time they are betting a little more than they should. Sometimes it gets ugly. It’s just the nature of the beast.
“My partners are pretty good to work with. They give me a little slack on a slow payer. But you can’t carry a guy for too long. When I carry a client for more than two to three weeks, it comes out of my personal bankroll.
“As an agent, I cannot have cash flow problems. When a player wins, you’ve got to pay him or you lose their respect and the possibility of referrals. I always have to be able to pay, without a doubt.”
Marty enjoys the action. “I like the fact that I’m basically going head to head with people. I’m backing the number, or the market, and they’re trying to beat the market.”
With the comprehensive services available through his three partners, he considers himself a full service broker. Marty now has the capability to handle new customers which would take him to his target capacity.
We wondered how he makes money -- from balanced action or decisions. “We want to hold as much as we can,” Marty explained. ”To make real money, you’ve got to have one-sided action, or else you’re just making the juice for the house. I want one-sided action and need to win a majority of the resolutions.
“Almost every weekend hinges on me winning or losing three out of five key decisions.
“You need volume, about $100,000 per month to clear five to 10 dimes. The average hold is five to eight percent. A great month could be plus 10 to 12 percent. In bad months, I’ve lost $5K to $8K. Basically you die during baseball season, so you are really busy for eight or nine months per year.”
Always on the lookout for fresh blood, Marty seeks reliable players with disposable income, such as doctors and lawyers. He then gets a readout on them based on info from others and gut instinct. He insists on meeting locals face to face.
Law enforcement is an issue he knows must be dealt with, but believes anything he does is nothing more than a misdemeanor. “So I don’t think I’m looking at any felony actions,” he said.
The other issue is taxes. He needs an outside job as a cover to legitimize himself. And he is careful not to take checks. He prefers bank wires, cash or money orders.
Marty feels he is in a win-win situation. He accommodates customers looking for action, and books looking to handle the action. His crisp, no-nonsense approach to a business that is often emotional inspires confidence and respect. The day we met Marty, he was carrying $4,200 to pay off one of his partner’s runners and was meeting him in a Strip card room.
Currently Marty is handling 15 clients and is looking to close ranks with about two dozen players. Any bettor who would like to contact Marty can reach him by emailing buzzdaly@aol.com. We’ll pass along all inquiries to him.
World Trade Organization Reaffirms Its Ruling
Rejecting U.S. Position re Online Gaming
For the loud but distinct minority that considers gambling an activity reserved for those who should rot in hell and one fine day will do so, an action initiated by two small Caribbean nations drove a stake through the hearts of these zealots when the WTO reaffirmed its ruling that U.S. policies which make online gambling a crime violates global laws.
In an exhaustive, balanced and decisive 273 page document, the WTO supported the contention by Antigua and Barbuda that U.S. legislation to ban Internet gaming violates terms of the General Agreement on Trade in Services (GATS).
Essentially, the religious radicals who feel they have the right to put their imprimatur on how everyone lives have been told officially to “shut up.” Of course, they still control many American politicos as well as key officials in the current Administration and the usual number of suspects who disseminate their hypocritical claptrap from pulpits.
With its head stuck firmly in the sand, the U.S. government said in March, when the preliminary ruling was issued, that it would “vigorously” appeal the decision and will do so again.
The absurdity of its position has not dawned on either the government or its intolerant supporters. Like it or not, Americans are the world’s largest consumers of gambling services -- domestic and global -- according to the WTO, which cited $69 billion as the most recent recorded figure for 2002.
Obviously the issue will not be resolved any time soon. History teaches us that the key to success in such a conflict is patience and putting relentless pressure on the moral fascists who deny others the same rights they insist on abusing.
Gradually the sands of time are flowing toward those with a rationale based upon reason, instead of a puerile mentality locked in the Dark Ages.
Meanwhile, time to check in with my offshore B.M.
Job Opportunities in Offshore Gaming
Attract High Caliber, Motivated Workers
We’ve been dealing with the offshore gaming industry since the mid 1990s, and if there is a single common denominator that describes the people involved in this exciting business, it is motivation -- from the ticket writers to the customer service reps right up through the operators, including entrepreneurial bookmakers.
The men and women working in this field have deliberately made it their career choice. Of course, given the penalties imposed by the U.S. government for working or investing in offshore gaming, many Americans do not opt for this, since they might be considered law breakers or even fugitives.
But other nationalities are eagerly taking advantage of the opportunities to make a comfortable living holding down challenging jobs with a future. Recently, we caught up with an old-time contact, Gerry Diwa, who is looking to rejoin the offshore industry. He is an experienced Internet gaming pro with sportsbook, casino, racebook and software background.
He has handled diverse responsibilities in marketing and affiliate marketing, product development and search engine optimization. Diwa is a strong strategist who knows how to increase brand awareness and market share, and how to exploit new avenues of attracting business. For more information and a resume, contact islandcode@yahoo.com.
Did Exit Poll Election Day Scam
Influence Action at Gaming Sites?
During the recent elections, there was some concern that the networks had been duped by bogus results of early exit poll returns. Pardon us if we don’t weep for any media giants snookered by their insatiable thirst to be first, accuracy be damned.
But we learned that some gaming sites that took action on the presidential race were also influenced by reports that showed Kerry making a surprisingly strong showing. According to a source, Bush -- who had been a -140 to -180 favorite -- briefly dropped to an underdog, until it became clear the reports were based on erroneous data. Reportedly, a few opportunists deceived by these reports took a financial hit.
While exit poll info is supposed to go only to the media that paid for it, several enterprising online news sites such as Slate.com managed to obtain the info and reported it.
Information always leaks to journalists other than those whose companies paid for the info. “Slate believes its readers should know as much about the unfolding election as the anchors and other journalists, so given the proviso that the early numbers are no more conclusive than the midpoint score of a baseball game, we’re publishing the exit-poll numbers as we receive them,” said the website.
If a few bettors got the worst of it due to the competitiveness of sites angling for Election Day bragging rights, welcome to the “Information Age”, and caveat emptor.
Venerable Offshore Book Under New Management
Betmaker.com, which was one of the early offshore success stories, has undergone several management changes since its original owners sold out for a fat profit. It now has a group of “deep pocketed, dedicated investors” who are aggressively seeking a fresh start, we were advised by the book.
Customer service supervisor Robert Foster told us the full-service gaming company is offering a broad range of signup incentives which are competitive with other leading companies. He asked us to help disseminate the info that the new Betmaker.com is looking for players who want sports, horses and casino action. For more info, contact rfoster@betmaker.com.