Editor’s note: As regular readers know, when it comes to spotting the next explosive investment trend, we turn to Strategic Trader editor E.B. Tucker.

Last year, he told us about one of the top money-making opportunities today: the legal sports betting industry.

But recently, E.B. found a backdoor way to profit off of this young market – by tapping into the growing electronic gaming industry.

He’s already recommended two ways to profit from this boom in his Strategic Trader letter.

One’s up 291% in just over two months. The other’s up 167% in just over one month.

Those are incredible returns. As you can see, this is real. It’s happening today. And now’s the time to take advantage.

E.B. recently sat down with Chris Lowe for Legacy Inner Circle to share all the details… and explain why you should be paying attention to “virtual sports”…


Chris Lowe: I want to touch on a big shift in the gambling world that you’ve put on the radars of your Strategic Trader readers. As I gather now, folks aren’t just betting on real-life games between real-life players. There’s a new market for “virtual sports” that’s blowing up.

E.B. Tucker: That’s right. First, we should make some definitions clear. There’s an important distinction between virtual sports and “esports,” which is also becoming a big deal right now in the betting world.

Virtual sports are computer-simulated games. Other than the person placing the bet, there’s no human involved. The football game, or NASCAR race, or NBA final you’re betting on is 100% a computer simulation.

Esports, on the other hand, is humans playing video games. People bet on them winning video games like they’d bet on a regular sports game.

Chris: So help me picture what an esports tournament might be like.

E.B.: Imagine a video game arcade with room for about 75 people. They’re all paying $10 an hour to sit at a computer terminal and play a game such as Fortnite or Overwatch.

One of the players in the room is Billy, who’s 16 years old and a great player. So you could bet $100 that Billy’s going to slay the dragon and capture the princess.

That’s the distinction. In esports, you’re betting on a person winning a video game. With virtual sports, you’re betting on outcomes in a computer-simulated version of a sports game. The “game” then plays out on a screen.

Chris: Betting on computer-simulated sports games sounds bizarre. Where’s the fun in that?

E.B.: I know what you mean. When I first read about the virtual sports betting phenomenon, I felt I needed to see it in action firsthand.

Pennsylvania was one of the first states in the U.S. to offer virtual sports betting through its state lottery commission. So I flew to Pittsburgh, and I picked a place on the south side of the city called Smokin’ Joe’s Saloon. The state lottery commission website said it offered this type of betting.

I walked into Smokin’ Joe’s and asked if they had a virtual sports betting machine. They didn’t really know what I was talking about. But they said, “Well, we have this machine over there from the lottery.”


Virtual sports betting machine in Smokin’ Joe’s

It’s this yellow terminal with slots for your money and a screen. There’s even a card reader so you can pay with a debit or credit card. It gives me the option to play the state lottery games. It also has Xpress Football, a virtual sports betting game.


E.B. bet $1 each on five random outcomes in a virtual football game

I take a pencil. And I cross through some options on one of the cards beside the machine. They’re like the cards from the Powerball lotto.

The options it gives you are all “prop” bets. That’s gambling parlance for proposition bets. These are side bets on anything other than the final outcome of the game. For instance, a touchdown, a field goal, an extra point, or a turnover. I bet $5 – five separate $1 bets on five different outcomes.

Chris: Walk me through how the game simulation works. Like I said, it sounds bizarre to me.

E.B.: Every five minutes, a new simulated football “game” starts. These have randomly generated outcomes. Each game starts with the ball on the 20-yard line. They go four downs to the end zone. You bet on what’s going to happen in that period.

For one of my $1 bets – you can bet up to $20 on each – I bet that there would be a turnover on the second play. Turns out there was a turnover on the second play.

Chris: How did you do?

E.B.: My $1 bet paid out $175.

Chris: That’s not a bad result. Did you keep playing?

E.B.: No. I’m a seasoned speculator. When I win at a game I don’t understand on odds of 175-1… I walk. I promptly cashed out and took the money.

Chris: Where is this all going over the next several years?

E.B.: Just like any type of betting sanctioned by the state lottery commission, the state takes a big cut of every dollar bet. While I won, the odds are not good for players. Lotteries and games of chance are big revenue generators for state budgets.

Michigan is also getting in on virtual sports through its lottery. States tend to follow each other when it comes to new sources of tax revenue. It won’t be long before most states offer virtual sports betting. It’s going to be hugely popular.

Chris: You don’t think there’ll be resistance to this new kind of gambling? Sounds like you could lose a lot of money, if you’re not as careful as you were.

E.B.: I don’t think so. I was living in South Carolina in 2002 when they launched the state lottery there. Everybody I talked to about it at the time was convinced it was a bad idea.

So they called it the “South Carolina Education Lottery.” And they sent a chunk of the profits to South Carolinian schools. This lowered the level of opposition considerably. Last year, the South Carolina state lottery generated $1.7 billion in sales. And $430 million of this went into state education programs.

It’s the state lottery commissions that are rolling out these virtual sports betting machines. And state lottery commissions are huge revenue generators. Once lawmakers get used to that money pouring into state coffers, there’s no turning back.

It’s the same for sports betting in general. Once the state coffers start filling up, any opposition will quickly disappear.

Chris: Do we have any idea yet how large this market could get in dollar terms?

E.B.: We don’t know exactly. What we do know is that Greece introduced virtual sports betting in 2017. In the first 12 months, players bet $600 million.

Pennsylvania has a population just slightly larger than Greece’s. But Pennsylvania’s GDP is three times higher. So let’s say the same number of people in Pennsylvania bet about three times the amount they bet in Greece. That works out to $1.8 billion.

Now, multiply this by the 50 states in the country. We’re talking roughly $100 billion in bets a year in the U.S. on completely simulated virtual sports.

Remember, you can bet on simulated games 365 days a year. There’s no football season… or basketball season. You just walk into a bar and place a couple of bets while you’re drinking a beer. You may well stay there for hours. In fact, with a new “game” every five minutes, you could potentially play up to 12 times an hour.

Chris: How do you get exposure to this trend?

E.B.: What my chief analyst, John Pangere, and I are looking into for our Strategic Trader readers are the companies making the software and providing the services that make virtual sports betting happen.

We’re looking to play it with something called stock warrants.

Without getting too far into the weeds, a stock warrant is a security that gives you the right, but not the obligation, to buy shares in a company at a fixed price at any time during a pre-determined period.

In simple terms, warrants are a way to make more money than just buying a stock outright. They’re also a much cheaper way to get in. They’re as easy to trade as common stock. And they offer better returns than common stock because of the leverage they give you to a rising stock price.

I also recommend taking aim at the legal sports betting business in general.

It’s hard to know for sure how big the sports betting market will become. But research from the American Gaming Association estimates that illegal sports betting is worth $150 billion a year.

The legal sports betting market will be even bigger. You see, markets the government has outlawed always grow when they become legal again. This makes sense if you think about it.

Up to now, if you wanted to bet on a game outside of Nevada, you had to find a “bookie” – someone who would illegally take a bet for you.

If you lost the bet… and didn’t pay up… your bookie might have someone go over to your home and break your legs. Because you were betting illegally, you probably felt like you didn’t have any legal recourse.

But even with those considerable hurdles, illegal sports betting was a $150 billion business. Now that you can bet in the open, I expect the industry to hit $250 billion in the next few years.

Chris: Thanks for taking the time to speak with me today, E.B.

E.B.: My pleasure.

Editor’s note: As we mentioned earlier, E.B.’s found two of the best ways to take advantage of the electronic gaming industry. One of his picks is up 291% since April 18. The other has soared 167% since May 16.

Both of these picks are still buys today… as E.B. sees much bigger gains ahead.

Remember, this is a long-term play… a multibillion-dollar industry that’s finally stepping out of the shadows and going mainstream.

You don’t want to let this opportunity slip. You can access these specific plays – and all of E.B.’s research in the sector – with a subscription to Strategic Trader. Click here to sign up today.

Chart of the Day: This Key Indicator Is Bullish for Cryptos

By Houston Molnar, analyst, Casey Research

Cryptos are up more than 133% over the last three months… And as we showed you last week, we believe this is just the beginning.

Today, we have another bullish sign… For more, we turn to our in-house crypto and blockchain expert Marco Wutzer.

Marco is the senior analyst of Disruptive Profits. He’s also a true crypto pioneer. He’s been involved with digital currencies since the late 1990s… and made so much money speculating on them that he dropped everything a few years ago to travel the world.

In other words, when he talks, it pays to listen. I recently asked him about what he’s seeing in the sector…

There are a ton of positive developments, but one stat stood out: the explosive growth in blockchain wallets. (Think of blockchain wallets as a brokerage account which stores your investments, but for cryptos.)

The chart below shows the total number of blockchain wallets since 2012.

Chart

As you can see, the number of people who believe in blockchain technology is rapidly growing. Over 7 million blockchain wallets have been created so far this year. That’s a 24% increase year-to-date.

It’s also important to highlight that the growth rate hardly budged in 2018 as the crypto market lost more than 85% of its value. The increase in wallets over a brutal bear market shows that something groundbreaking is happening with blockchain technology.

This is huge. Think about it… More blockchain wallets mean more people are excited about the space.

This is just the latest reason to have exposure to cryptos today. More people today have wallets than ever before. And as cryptos break out into the mainstream, that number will continue to go higher…

If you haven’t yet, consider investing in bitcoin. Bitcoin is considered the reserve currency of the crypto world and is a great place to start.

Marco says:

Bitcoin can improve any portfolio because it has a low correlation to other common asset classes, such as stocks, bonds, commodities, and real estate. Having even just a small percentage in bitcoin can reduce the volatility of the portfolio.

Even more importantly, Marco points out that we are still at the beginning of a new financial system based on blockchain technology. And the biggest rewards go to those investors who get familiar with this new asset class the earliest. So now is a good time to get familiar with bitcoin.

Houston Molnar

P.S. Bitcoin isn’t the only way to profit in the crypto space… Marco specializes in finding blockchain projects with massive upside potential. We’re talking 100x, 200x, even 300x. One of Marco’s recent picks is up 153% since he made the recommendation back in January. And good news for those who have yet to jump on board: The recommendation is still under its buy-up-to price.

You can access the name of this project – and all of Marco’s extensive research on cryptos – with a subscription to Disruptive Profits. Go here to sign up today.