Some People Will Bet On Anything, Even Seats To A Hockey Game

OptionIt

Nathan Detroit bet on cheesecake sales and the founders of OptionIt are betting that sports fans will wager on seats. Founded in 2008 by Chris Pappas and Frank Caruso, commodity brokers on the Chicago Board of Trade, the startup uses its own technology to let fans place options on seats for future events aka the “pre-primary market.” The company only offers tickets from “official” partners so seats are guaranteed; the small roster includes the St. Louis Rams, the San Jose Sharks, the Buffalo Bills, and the Baltimore Ravens. An NBA announcement is due soon, according to MarketWatch. OptionIt has raised more than $2 million in seed funding and has a high-profile stakeholder in CAA Sports; the agency told MarketWatch it acquired the interest through an “exchange of services.”

How it works: As is the case with market options (a form of legalized betting), buying a contract gives you an option to buy something at a future date — say tickets to a Rams game or, maybe a better example since the NHL season hasn’t started and they still have a perfect record, San Jose Sharks playoff tickets. (The Sharks are making 20 seats available per game; an exec told MarketWatch they’ve sold 60 options since July.) You can sell — or exercise the option to buy the tickets at face value, giving guaranteed price for tickets that might zoom out of reach if scalped. If the team tanks, that’s where the other side of the bet comes in. OptionIt and the teams, leagues and event owners split the option prices and the buyer/seller fees. Fans get the chance at tickets they might otherwise regret skipping.

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