“House always wins” may be the motto of Las Vegas gamblers who say that games always favor the casino over the player. But Caesars Entertainment, owner of brands like Caesars . Palacehave a different time these days.
A Houston furniture store owner’s payout on a World Series bet is so large that it is significantly reducing Caesars Entertainment’s profit margins.
“I think most of you know that we have a pretty high liability for the Astros,” Caesars Entertainment CEO Thomas Reeg said on an investment call earlier this month ahead of his win. World Series. “That will be a factor in whether or not the fourth quarter is positive.”
Jim McIngvale, aka “Mattress Mack,” may have one of the biggest reasons to celebrate the Houston Astros’ World Series win over the Philadelphia Phillies earlier this month. Thanks to a series of bets amounting to $10 million, McIngvale landed $75 million from a win over the Astros – a financial win that is said to be the biggest payoff in sports betting history.
However, McIngvale did not take the winnings for himself. Gallery Furniture chain owners regularly link promotions with Astros to win.
Customers who have spent $3,000 on a mattress through July 5 will be promised double their money if the Astros attend the World Series. He then gradually reduced that to 100% of their money and ended up having to pause the promotion altogether because he sold through a potential $75 million winnings, according to a person familiar with the matter. Caesars Sportsbook blog post. At least 3,000 customers of Gallery Furniture will be rewarded from staking.
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Not all of the $75 million payout will come from the Caesars Entertainment wallet, but a hefty sum. McIngvale made a $3 million bet at the beginning of May on the Astros win through Caesars, which means the casino conglomerate is getting $30 million. He also made a $1 million bet with WynnBet, the Wynn Resorts sportsbook, at the start of the baseball season, according to the sports betting site Action Network.
McIngvale completed his streak in July with a $2 million bet with MGM Resorts International’s BetMGM, $2 million at Barstool and $1 million each on Unibet and Betfred.
The CEO of Penn Entertainment, Barstool’s parent company, also noted in an investment call this month his company would be profitable if McIngvale didn’t win and would be “close to breaking even” if he did. so.
Caesars is on track to take the biggest share of the winning pie, but it looks like the company is losing a lot of sleep.
“What can we say? We just wrote the biggest check in sports betting history to Mattress Mack for $30 million,” said Ken Fuchs, CEO of Caesars Digital, told CNBC. “Are we going to do it all again? You bet. “
