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Sports fans don’t make picks or play fantasy sports in a vacuum.
They text the group chat, argue through halftime, send screenshots when they win and go a little quiet when they’re wrong. Open most daily fantasy apps, though, and that energy disappears. What’s left is a user, a line and a transaction.
Jordan Rothstein thinks that’s where the industry lost the plot. And when he talks about where sports gaming is headed, he tends to start somewhere unexpected: a Las Vegas surgeon and an FBI raid.
In January 1985, federal agents swept through 45 locations across 16 states in pursuit of a betting operation whose offense, as far as anyone could ever prove, was being right too often.
The Computer Group had come together five years earlier, when an orthopedic surgeon named Ivan Mindlin met Michael Kent, a mathematician who had worked on nuclear submarine systems. Kent had developed a computer model designed to beat point spreads, and Mindlin had the contacts to get the bets down. Together, they built one of the first syndicates to use computers to beat bookmakers at scale, reportedly wagering $40 million a year at its peak and hitting 60.3% of its college football picks in a single season.
The government pursued the group for years, but the case eventually fell apart. No one was convicted.
Mindlin was Rothstein’s grandfather.
“People read about the Computer Group and see this huge piece of betting history,” said Rothstein, CEO of SmackTok. “For me, it was family history. I grew up hearing how my grandfather saw technology changing sports long before most people did. It made me curious about what the next shift would look like.”
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