Posted: September 20, 2022, 10:16 AM.
Last updated on: September 20, 2022, 10:17 am.
A new online gambling exchange facilitating the buying and selling of player shares has started in New Jersey.
Mojo is a new betting exchange for NFL players that works similarly to a stock market. The online platform recently went live in New Jersey. (Image: Mojo)
Mojo combines sports betting, fantasy sports and stock trading in a new online iGaming offering. Funded by NBA Minnesota Timberwolves co-owners Marc Lore and Alex Rodriguez, Mojo says it allows fans to turn their “sports knowledge into real money.”
Mojo users can buy or short stocks of over 300 NFL players. A player’s value is based on their past performance, with their future prize depending on their game.
We’ve always said that if anyone could create a sports stock market, it would be the holy grail for sports fans,” Lore said of Mojo, a project he says has been in the works for more than two decades.
Mojo went live in New Jersey this week after receiving an online gaming license from the state’s Division of Gaming Enforcement (DGE). Mojo has raised $100 million to date which has been spent developing the stock market for innovative players.
Mojo has partnerships with Caesars Entertainment and Penn Entertainment, the former of which is being used in New Jersey to qualify the player’s stock market platform for an online operating license. Mojo plans to expand its operations to nine additional states next year and list new sports, including college.
The goal for Mojo users is to predict an NFL player’s final rating at retirement. Mojo is currently acting as a market maker to assist with user liquidity. The company says player values are based on career stats and prizes move 24/7 in real time.
“One of the really important premise of our market is that when you own a player’s stock, you basically have a payout based on their field stats at the end of their career,” said Mojo co-founder and CEO Vinit Bharara. “There is an objective formula that always anchors the value of the stock.”
Bharara, who made his personal fortune from lore selling Diapers.com to Amazon for more than half a billion dollars in 2011, explained that earlier prototypes for Mojo experienced the problem of players getting older and most becoming less valuable than them. were during their primes. To solve the problem of players eventually being sold and becoming worthless, Mojo challenges traders to predict a player’s worth based on their career performance.
The Mojo Value Mechanism is an objective statistical formula that increases or decreases a player’s value based on his performance. For example, a 10-yard gain for a running back raises the player’s Mojo stock price by one cent. But a turnover by the same player reduces their stock by four cents.
“We’ve tirelessly studied NFL analytics to come up with the easiest, most intuitive way to measure a player’s impact,” Mojo said. “Mojo Value is a single number calculated by weighing six key metrics to sum up an athlete’s impact in real-life games. The better the athlete, the more Mojo Value you can expect over a period of time.”
Mojo believes it has found the best method of valuing an NFL player’s worth. The base rating determined from a player’s entire career — not just their worth this season — provides “intrinsic value,” Bharara says.
When people buy a stock, that stock has what we call intrinsic value, meaning it has an objective dollar value that isn’t just worth what the next guy says it’s worth,” Bharara explained.
Mojo’s business model is primarily based on the platform which charges a 1% commission on all positions. In fact, if a user buys Tom Brady worth $500, the position will be $495 after Mojo takes its share. The site does not charge for payouts or settlements upon a player’s retirement.
This post Mojo NFL Player Stock Exchange Debuts in New Jersey
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