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The June issue of Bloomberg Markets takes a look at Cantor Fitzgerald CEO Howard Lutnick’s effort to become a leader in sports betting.The brokerage has invested $150 million in Cantor Entertainment Technology Inc., which filed for an IPO in December.
According to its prospectus, gamblers bet $362 million with the company during the first 9 months of 2011. It posted a $22.2 million loss over that span. As of last year, the company controlled 14% of the sports betting market.
The venture hopes to engage bettors in a new way; allowing gamblers to make multiple bets throughout an event. Wall Street inspired software quickly makes odds, so somebody at one of the company’s seven sports books could bet on the outcome of a single drive in a football game.
Sports wagers are illegal in 46 out of 50 states. Should Congress decide to change that, the estimated $380 billion illegal market could open up to Cantor Entertainment.
Pick up a copy of Bloomberg Markets to read more.