A couple of ex-New Yorkers who left Manhattan after developing a sports betting hedge fund have taken that technology and turned it into a Web3 superwallet product. The wallet rewards users for the bets they are placing at their favorite sportsbooks.

Whether those bets are placed within New York’s borders or in neighboring states does not matter. What matters is that keeping track of everything is easier, and it comes with a rewards program. Think of it as universal frequent flyer miles for sports gamblers.

The brains behind Scrimmage are Dan Taren and Matt Dever, a pair of young finance savants who previously worked in Manhattan for Bank of America and Citigroup. In 2019, they exited Wall Street and launched a sports betting hedge fund, Fremont Capital Partners, out of 안전놀이터 Gibraltar.

Fremont employed a sports gambling approach of putting an entire bankroll into play over the course of time by making as many “edge” bets as possible on any given day, usually somewhere between 120 and 150, depending on what sports are being played, and then having that edge and that volume multiply exponentially over a long period of time.

“We found as many games as possible that we have a slight edge on, and kept betting, attempting to bet through our bankroll as many times as possible,” Taren told Casino.org. “If you have a 1% edge and you bet 100% of your bankroll, you have a 1% rate of return. But if you bet through all of your money 30 times and still have a 1% edge, instead of a 1% return you now have a 30% return.”

What Happened After Fremont Shut Down?

That is the stuff investment bankers and MENSA types can figure out with ease. The casual gambler? Not so much.

But like the statistical analytics people who have taken over front offices in professional sports, the quants also have a place in the evolving sports gambling universe. Turns out Sam Hinkie was a trendsetter when he was tanking for the Sixers. James Click of the Astros is another numbers guy who may not be on the same page as Dusty Baker, but the Astros sure do get results.

The hedge fund was profitable, but also very complicated and time-consuming. Expenses were high, capital was difficult to come by, and staying compliant with different regulations was onerous – especially because they were based out of Gibraltar and were using offshore books.

“Matt and I asked ourselves: What if we took the infrastructure we used to run the fund and turned it into a B-to-C (business-to-consumer) operation?” Taren said. “What if we built technology to apply those same financial portfolio theories and gave it directly to bettors in the U.S.?”

That was how Scrimmage came into existence, helping bettors gain an edge by sourcing the best odds in the market, automatically syncing their real betting history, providing instant access to price changing news, and allowing for actionable notifications when prices shift. Scrimmage consolidated sports betting news and data for the everyday bettor.

But because Taren and Dever realized what they were doing was not unique (there is heavy competition in the niche odds companion tool space), they differentiated themselves by adding a reward component for their customers whether they win or lose.

The company uses Web3 technology and syncing capabilities with all of the major sportsbooks in New York (Fanduel, Draftkings, BetMGM, etc.) to offer sports gamblers a rewards program that gives cash back on the bets they are already placing. Does not matter if a customer has only one or two accounts or plays at 20 different sportsbooks in multiple states, which, as we have explained in our New York sports betting hub, is a major strategy New York bettors need to know (along with casino plans).