How Some Hedge Funds Win, Right or Wrong
January 8th, 2007 by Ian
I read an article recently in the Wall Street Journal about a guy who shook the sports betting market when his picks were released. This article mentions the size of the sports betting volume rivaling the GDP of New Zealand. It’s no wonder why the United States would want to keep this money in the country. The conclusion many are drawing is that the US government outlawed online gambling to give the ‘brick and mortar casinos’ in Nevada some time to catch up to the online arena that took off so fast. But there’s something more interesting.
If you follow online gambling you probably remember the chaos after the US passed a law outlawing online gambling. Online gambling companies trading on the FTSE lost tremendous amounts of their market value at a deadly rate. Many investors in these companies lost millions, but one made out like a bandit. He happens to manage a hedge fund and have the same last name as the Nevada Attorney General, George Chanos. This article by Stephen Roman is well put together and has more detail. Take a look.
