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#1
03-31-2006, 11:26 AM
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.400 hitter prop at pinnacle
At Pinnacle, you can bet that there will not be a .400 hitter this year in the major leagues at -6994. Now, correct me if I'm wrong, but...
A bet of 6994 returns 100 dollars. Thats 1.4%. The baseball season is roughly 6 months long. You can get six month CDs at the bank that pay better than this! Am I missing something? Also, has anyone on here worked at a large internet sportsbook? How much money do these guys have in the bank? How much interest do you think Pinnacle earns in a year? Just curious. 
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#2
03-31-2006, 12:50 PM
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Re: .400 hitter prop at pinnacle
umm, you bet 100 to get 6994.
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#3
03-31-2006, 01:02 PM
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Re: .400 hitter prop at pinnacle
no, dude. It is a bet that there will not be a .400 hitter.
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#5
03-31-2006, 01:50 PM
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Re: .400 hitter prop at pinnacle
[ QUOTE ]
At Pinnacle, you can bet that there will not be a .400 hitter this year in the major leagues at -6994. Now, correct me if I'm wrong, but... A bet of 6994 returns 100 dollars. Thats 1.4%. The baseball season is roughly 6 months long. You can get six month CDs at the bank that pay better than this! Am I missing something? [/ QUOTE ] Nope. [ QUOTE ] Also, has anyone on here worked at a large internet sportsbook? [/ QUOTE ] I'm sure someone has, but I have not. [ QUOTE ] How much money do these guys have in the bank? [/ QUOTE ] Depends on the sports book. I expect that the big ones have quite a bit of money. I would expect that the reputable ones account for the player-deposited money separate from their own money, and an external auditing firm can guarantee that if they experience an N-sigma loss and "run on the bank" they can cash this out. I'm guessing that they ladder their cash on hand, having some of it in ready "cash", some of it in liquid interest-bearing accounts, and some in less liquid investments. This is basically the same situation that banks or insurance companies face. You take in money and want to maximize how much you can earn from it while still being able to make payments when your customers need you to do so. These are well understood problems in finance. [ QUOTE ] How much interest do you think Pinnacle earns in a year? Just curious. [/ QUOTE ] I don't know, but I expect it's a pretty impressive chunk of change. One might be able to figure this out from the financial statements of the big sports books that are public companies.
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#6
03-31-2006, 02:28 PM
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Re: .400 hitter prop at pinnacle
[ QUOTE ]
A bet of 6994 returns 100 dollars. Thats 1.4%. The baseball season is roughly 6 months long. You can get six month CDs at the bank that pay better than this! Am I missing something? [/ QUOTE ] So to actually answer your question, you're right that you're better off putting your money in the bank in this case.
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#7
03-31-2006, 06:12 PM
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Re: .400 hitter prop at pinnacle
[ QUOTE ]
[ QUOTE ] A bet of 6994 returns 100 dollars. Thats 1.4%. The baseball season is roughly 6 months long. You can get six month CDs at the bank that pay better than this! Am I missing something? [/ QUOTE ] So to actually answer your question, you're right that you're better off putting your money in the bank in this case. [/ QUOTE ] just to be clear, you would have to get a 6mo CD at around 2.8% (tax and compounding implications aside). Of course, you can still find a CD rate at around 3.5%, so you are good.
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#8
03-31-2006, 07:08 PM
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Re: .400 hitter prop at pinnacle
not to mention a CD or high yield savings account has a much closer to zero chance of losing money than the .400 hitter prop in the first place.
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#10
04-01-2006, 05:30 PM
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Re: .400 hitter prop at pinnacle
this might be the dumbest bet ever
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