Interview: Wayne Allyn RootSports Betting Wall Street Style
I’m the ultimate contrarian. What that means is that it doesn’t matter if it’s Super Bowl Sunday or any old Sunday in September, October, November, or December, or any college Saturday or even college basketball, I’m always against the public. The public is always wrong, I’m betting with the house.
If you look at Wall Street, I believe our business is an exact mirror of Wall Street in almost every way. I am the Peter Lynch I am the analyst. I am the host of a show that is very much like Wall Street Week. I interview analysts on that show the same way you would interview analysts on Wall Street Week. We ask people if you like what you heard, then call us and we’ll give you our most valuable plays for a fee, no different than a money manager starring on Squawk Bock on CNBC. Once you call in, the person who answered the phone is very much like a stockbroker. I call them a sportsbroker.
Every single aspect of our business is modeled after a Wall Street stock brokerage and when you watch five analysts on national TV on our show, The Winning Edge, discussing games, I believe those five analysts are like a family of mutual funds because we own them all. It doesn’t matter who you call, the revenues come to our company GWIN, just like it doesn’t matter which mutual fund you invest in.
The funny thing is even my picks are like Wall Street, because the most reliable way to pick, Benjamin Graham was the great father of value investing, always look for a stock that is undervalued and buy it, look for a stock that’s overvalued and sell it. I was honored just recently, by Fortune Magazine, with a profile on me and the headline story was “The Benjamin Graham of Gambling”. And that’s who I am, I’m a contrarian and I’m a value investor. And just like Benjamin Graham would look for stocks that were under or overvalued, I look for sports teams that are under or overvalued. Whether it’s Super Bowl Sunday or any old Sunday or Saturday, I’m scanning the information available on the net, on radio talk shows, in print, on TV, listening to sports casters and experts and other handicappers. and I’m trying to figure out who the overvalued teams are and who the undervalued teams are. That’s where you find your winners.
It has nothing to do with who your quarterback is, it has nothing to do with who the offensive and defensive linemen are, it has nothing to do with injuries, that’s a joke. Those who study those things are going to lose again, again and again. It has to do with psychology, market psychology, where the bettors are going, because they’re always wrong and the reason they’re always wrong is the precise moment where they can’t take a team is the precise moment you’ve got to bet on that team.
Once the Jets lost four weeks in a row, and there is no money left in the whole world to bet on them, that’s when you’ve got to bet on the Jets. And that’s they way I run my business. It works every time, because at the moment no one wants to bet on them and they are 10 point underdogs when they should be 14. and that’s my whole philosophy -value investing.
Our website www.winningedge.com was designed by me with an eye towards the gambler, obviously. What I mean by that is that any sports fan can go to ESPN, or CBS Sportsline, or FOXSports.com. And If I was a sports fan and not betting, I would too. There’s no reason to come to our website if you’re not a gambler. Our site is a niche site, and the niche is guys who gamble on sports. And I say that not facetiously, ‘guys’, because our whole business is men. This is a guy’s hobby. It’s one of the most masculine, macho businesses in the world. At this point, we have about a quarter of a million people in our and out of the quarter million, all but 5 or 6 are men. The men who are our clients are male, upscale, with high income, with high disposable income, college educated guys that are betting a thousand dollars a game or more. Most of them are stock investors as well as sports investors and our website is geared towards that type of person who wants not just sports information but sports gambling information.
I think what changes the ball for us is that I’ve had a goal since I was a very young man just out of Columbia University to model my career, my life after Steve Wynn. Steve Wynn was the guy who changed the entire image of gambling in the United States of America. Until he came along, it was very negative, people thought it had to do with the mob, people thought it was a vice and then along comes a young man just out of an Ivy League College, University of Pennsylvania, and I think a lot of people said Wow that changes the whole mold – well dressed, presentable, charismatic and all of a sudden he said it’s not about gambling it’s about entertainment and it’s about volcanoes, tigers, and dolphins and getting families to Las Vegas. That’s exactly what I’m looking to do for sports gambling and sports handicapping.