Have you heard of Mojo? No, not that thing Austin Powers lost in Goldmember, but the new sports betting company started by Vinit Bharara. This new company is trying to carve out a new sort of niche in the billion-dollar sports gambling space.
Ok, they certainly aren’t the first nor will they be the last to try and enter the sports gambling space, so what makes Mojo special and worthy of discussion like we’re doing here?
We’ll Mojo is looking to bring a new kind of sports betting. They’re making it all about the player. And no, I’m not talking about game props you traditionally get with legacy sportsbooks. Think of it as a stock market and the players are the stock.
What Is Mojo Sports Betting Stock Market?
I’m not the one that came up with that comparison, it's right there in the Mojo marketing material. They call themselves the “sports stock market”.
Most of us already know the basics of the stock market. Investors back individual companies by buying shares in that company. These investors do so because they believe a specific company will perform well. If they’re right the stock rises and they can make money. That's basically how it works.
That’s exactly how Mojo works, but instead of trading stocks in a company, you’re doing so with athletes.
Mojo puts a value - or price - on over 300 NFL players based on what they term “guaranteed retirement payout”. This guaranteed retirement payout is based on a player’s stats. For example, a quarterback's value is based (in part) on expected yards, first downs and touchdowns once they retire. A player's stock would then rise, and fall based on their performance, injury, trades even rumors that can factor into a player's stock.
That's where things get interesting for Mojo users. They can buy and sell stock in a player at any time. If you think a player's value is about to go up, buy a ton of stock and see your portfolio jump.
The incentive for gamblers is to find players that are undervalued by the stock hold it and sell when the price rises.
What Is Mojo The Big Short
Gamblers have another option on Mojo; shorting. If you’re new to investing or haven’t seen the Hollywood blockbuster “The Big Short” shorting might be new to you. Essentially, shorting is betting against a position. When it comes to Mojo, gamblers can bet that a player’s stock will actually fall. As a player's price goes down, you make money.
Say you believe Lamar Jackson's price is too high. You think his performance against the Cincinnati Bengals where the Ravens QB tossed for 174 yards, 5.44 yards per attempt with a woeful 59.38% completion rate was indicative of a bigger issue.
Now because you believe Jackson is not worth his price, you decide to short a single Lamar Jackson stock. Shortly after you do so the price drops from $20 to $10. You can then exit your short and make $10.
It’s an extra level of flexibility for gamblers as they bet on their favorite athletes.
What Is Mojo: Will It Work?
Now the big question is, will gamblers jump on the bandwagon and put their money in this new sports market? That’s a big question.
At the moment Mojo is only available in New Jersey but they plan to expand. They’ve already raised $75 million in funding so Bharara isn’t the only one who thinks this “sports stock market” can work. And look, if there’s money to be made you have to think bettors will jump on board and try.
Mojo Sports Stock Market FAQ
What is Mojo Sports Stock Market
This is a new company that wants sports gamblers to invest in athletes. See the Mojo website to learn more.
How does it work?
Gamblers bet on the value of over 300 NFL players and whether that players value will go up or even go down.
Is Mojo available in all markets?
For now, Mojo is only available in New Jersey, but they are hoping to expand their reach soon.