June 24, 2021

Betting as Advertising

A Houston furniture store owner just plunked down millions on the Astros to win the World Series at 10 to 1 odds:

Now he will begin to mitigate his $3.35 million risk with a promotional giveaway at his store, Gallery Furniture. Customers who spend $3,000 or more over the next several months will receive their money back if the Astros win the World Series, while McIngvale will win $35.6 million on his wagers in addition to publicity for his store.

Entering Wednesday’s action, the Astros (45-28), who have won nine straight games, own the best record in the American League.

ESPN.com

There’s a furniture store in MA that ran a similar promotion years ago for the Red Sox in a year they won the World Series. The store bought an insurance policy to cover the win, and this pretty much amounts to the same thing. The difference here, I suspect, is the payout to the owner will be much bigger if the Astros are crowned champions.

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