02 Nov 08:00 AM
US-start-up Mojo has launched a platform resembling a sports stock market where sports fans can invest in the careers of athletes by buying shares of their stocks. Share price appreciation and depreciation are driven by future statistics of athletes and the market’s expectations for players’ performances. Injuries, in turn, have a negative effect on share prices. Users can expect a payout once a given player retires.
The Mojo app has been launched in New Jersey in September and Mojo plans to clear regulatory hurdles in other US states in the near future. The start-up has betting license partnerships with some major gambling companies and emerging online sportsbooks. While the business model of those established companies is based on gamblers losing money to the house on wagers, Mojo aims to generate revenue from small commissions on various in-app transactions.
Interestingly, the licensing and marketing arm of the NFL’s players’ union has invested in Mojo. Hence, the idea of fans directly investing in athletes has attracted the attention of key actors in the sports industry. While players’ associations are interested in redistributing betting revenue among the athletes they represent, the appeal of products such as Mojo for sports fans compared to other betting alternatives has yet to be proven on the market.
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