Bentley Global, which used the money from selling mini-bonds to make bets on football games, has raised almost £10m from investors since February 2018. It had paid out interest of between 12pc and 20pc per year, but has not made a payment since March 2020 when sporting events were either halted or played without spectators.
It’s even possible that it would work too. There are distortions in sports books because they’re based upon the weight of money not any objective factors. Thus, just for example, the odds on the All Blacks winning on a NZ sports book are different from those of their doing so on an English book when playing England. There’s an arbitrage possible between the two books.
Not that I think that these folks were doing this, not in the slightest. But it is, in theory at least, vaguely possible.
I have significant suspicion that there was joyous punting going on, not careful arbitrage of sports books, and thus that it will have slipped into Ponzi territory. But that is, of course, only opinion….