Business Maverick

Tiger’s Win Costs FanDuel $2 Million as Sports Books Lose Big

By Bloomberg 15 April 2019
Caption
epaselect epa07507100 Tiger Woods of the US celebrates after winning the 2019 Masters Tournament at the Augusta National Golf Club in Augusta, Georgia, USA, 14 April 2019. The 2019 Masters Tournament is held 11 April through 14 April 2019. EPA-EFE/TANNEN MAURY

Tiger Woods’s historic Masters title, cheered by fans and celebrities around the world, was a big loss for sports books in Nevada and New Jersey, suggesting other bookmakers may have lost money too.

FanDuel Group, which ran a refund promotion tied to its fantasy product, said it lost $2 million when Woods secured his first major victory in more than a decade. The Westgate Las Vegas SuperBook lost nearly $100,000, its worst result ever for the Masters, and William Hill U.S. lost “seven figures.”

“It’s great to see Tiger back,” said Nick Bogdanovich, director of trading at William Hill U.S. “It’s a painful day for William Hill — our biggest golf loss ever — but a great day for golf.”

Sunday’s losses, though bad for many, likely won’t come close to offsetting the profits amassed during Woods’s down years. Despite a decade of struggles both on and off the course, Woods remained a favorite among the golf-betting public. It was common for Woods to be the most popular golfer at a tournament, regardless of how long the odds.

“We are still doing well overall with wagers involving Tiger,” Jeff Sherman, vice president of risk at Westgate SuperBook, said in an email.

At FanDuel’s sports book, 21 percent of the futures bets placed on the Masters were on Woods to win it all, a slanted total that resulted in a net loss of more than $1 million. The company also ran a promotion for its biggest Masters fantasy contest, where it promised to refund all entries if Woods won the tournament. That resulted in another $1 million paid back to FanDuel customers.

‘Seven Figures’

William Hill found itself in a similar spot. A few days before the first round, a William Hill bettor in Nevada placed an $85,000 wager on Woods at 14-to-1 odds. The bet, which paid out $1.2 million, was the biggest liability on a single golf wager in William Hill’s seven-year history taking bets in the U.S. After all bets were paid out, William Hill was out “seven figures,” according to spokesman Michael Grodsky.

Not all sports books took a loss. MGM Resorts International broke even on the event, according to Jay Rood, its vice president of race and sports. MGM had its biggest handle ever for a golf tournament.

“We were a small loser to Tiger before the start but were able to fade it over the course of the tournament,” Rood said.

Woods will undoubtedly remain a driver for sports books moving forward. After the tournament, FanDuel published new odds on the rest of Woods’s career. Bettors can get 5-to-1 odds on Woods to tie Jack Nicklaus’s record of 18 major titles (he’s currently at 15) and 10-to-1 to break the record.

Gallery

Want to watch Richard Poplak’s audition for SA’s Got Talent?

Who doesn’t? Alas, it was removed by the host site for prolific swearing*... Now that we’ve got your attention, we thought we’d take the opportunity to talk to you about the small matter of book burning and freedom of speech.

Since its release, Pieter-Louis Myburgh’s book Gangster State, has sparked numerous fascist-like behavior from certain members of the public (and the State). There have been planned book burnings, disrupted launches and Ace Magashule has openly called him a liar. And just to say thanks, a R10m defamation suit has been lodged against the author.

Pieter-Louis Myburgh is our latest Scorpio Investigative journalist recruit and we’re not going to let him and his crucial book be silenced. When the Cape Town launch was postponed, Maverick Insider stepped in and relocated it to a secure location so that Pieter-Louis’ revelations could be heard by the public. If we’ve learnt one thing over the past ten years it is this: when anyone tries to infringe on our constitutional rights, we have to fight back. Every day, our journalists are uncovering more details and evidence of State Capture and its various reincarnations. The rot is deep and the threats, like this recent one to freedom of speech, are real. You can support the cause by becoming an Insider and help free the speech that can make a difference.

*No video of Richard Poplak auditioning for SA’s Got Talent actually exists. Unless it does and we don’t know about it please send it through.


Comments

Please note you must be a Maverick Insider to comment. Sign up here or if you are already an Insider.

BUSINESS MAVERICK

SA Reserve Bank holds rates, signals a cut on the horizon

By Ed Stoddard