We decided to make some major changes to our business and service offerings in 2019. It took a little while longer than I had hoped but we have now implemented the change. We are now investing in professional sports games instead of stock or currency markets. Most people call this gambling. But I believe the way we do it is actually a lot closer to short term investing in financial markets. The learning curve for financial market trading is so huge and the deals so risky that very few people can ever achieve any sort of predictable and reliable success. However, anyone can succeed by investing in sports games. Let's talk more about this.
By way of background we must briefly discuss the legal status of binary options. This contributed greatly to our decision to cut and run. In the United States the Security and Exchange Commission heavily discouraged investors from investing in binary options. If fact, binary options were essentially deemed illegal there with the exception of the fully regulated NADEX exchange. Unfortunately NADEX is not user friendly. Rather than operating the exact same way as other binary brokers, NADEX has confusing terminology and commission fees that make it much more difficult to make money.
In 2017, Canada outlawed binary options, declaring that any broker that offered its services to Canadians is in violation of the law. In 2018, the European Union also initiated a similar ban on binary options. There are a few brokers left on Caribbean and Pacific Islands. But many of them will no longer accept clients from North America. The few brokers that remain have really dropped their returns on some assets to less than 50%. There were a few online casinos that offered betting on financials. But even they pulled the plug and stopped offering these wagers. It was at that point that we decided to pull the plug as well. So we made the switch to sports deals.
While the legal status of sports wagering is not exactly in stone, the business is certainly expanding rather than declining. In the United States, several states now allow legal sports wagering. In Nevada, both online and offline sports betting is legal. There are lots of licensed sports books located in various locations throughout the world. Unlike binary options, sports wagering has been around for a very long time. This is very large industry not going anywhere anytime soon.
A sports game is exactly like a binary financial option instrument. The outcome is binary, meaning that one side or another is going to win. Or the score will be higher or lower than a predicted number. The payouts for sporting events is actually higher than binary options. Some winning deals will actually bring about a return higher than 100%!
We are not alone in this. In 2010, the very first sports based hedge funds arrived on the scene. One of these firms reported returns of 43% for their investors. In 2011 another sports fund reported an annual return upwards of 52% for their investors. There are now lots of financial market investors that place funds into sports deals.
If you think about it there are lots of advantages in doing sports deals rather than traditional financial markets. There are many games available in many different kinds of sports. You no longer have to suffer from market pullbacks and collapses. Sports games are completely immune from geopolitics, bad earnings, business failure and other bad news that can suck the life out of stocks and currencies. And sporting events occur every single day of the week, even weekends.
So there you have it. Keep an eye on our track record and rate of returns. I believe you will also be convinced to put at least some of your money into sports deals. Until next time, Happy Investing!