A big name, a risky market and a bold guarantee. Ex-MLB pitcher Michael Schwimer has the makings of a fascinating D.C. startup on his hands.
Schwimer's new District-based venture, Jambos Picks, brings a machine learning-based approach to sports betting by analyzing public and commercial data sets.
To get rolling, the startup has raised $23 million in funding to burst out of beta mode and into the market. It's now backed by several big-name financiers, including Bill Miller, David Ganek, Marvin Bush and Steve Duncker, chairman of the New York Racing Association.
Jambos leverages data-based models to make bet recommendations for NFL, NCAA Football, NCAA Men’s Basketball and MLB games.
It recruited a data analytics team with experts in both sports and finance to build its algorithms, which use data on teams, players, weather conditions, home/away stats, team and player matchups and other metrics.
The service's most noteworthy feature is a bold guarantee: Picks will be profitable or bettors will get their subscription fee back, plus additional money.
The discounts vary depending on subscription length. The full 17-week plan costs $3,000 and has a $10,000 refund if the picks don’t make money overall. But you'll need to bet a lot.
For example, on a $3,000 subscription including 1,000 recommended bets, you would receive $10,000 back if you followed the Jambos method – $300-plus bets – and did not profit.
During eight months that began in December 2018, Jambos made 2,522 recommendations and finished up 234.95 units, according to SBC Americas. That works out to $70,000 of profit for the method's recommended $300 bets, or about 10 percent profit on a deposit of $756,600.
The platform combines the financial guarantee with transparency for all of its bet recommendations, Jambos says – recognizing the industry is difficult to track and in need of more integrity.
“Jambos offers complete transparency by displaying time-stamped historical bet recommendations for all to see,” according to a company statement.
The industry does not have history on its side, but there is regulatory momentum as federal and state laws begin legalizing sports betting and some of its darker players are forced from the shadows.
