Last year, the Houston Astros came up short in the World Series against the Atlanta Braves and in defeat, it cost one famous Texan gambler a world-record $36 million win.
As we reported when the Astros and Braves were tied at 1-1 in the World Series, Jim McIngvale, better known as Mattress Mack, had place $3.6m worth of bets on his beloved Houston Astros to win the World Series.
Their defeat cost him a potential payout of $36 million.
Well, he hasn’t been put off from making massive bets and he has done so again this season.
With the MLB season delayed, Mack has now placed bets totalling $4m on the Houston Astros to win the World Series once again.
If he is successful and the Astros win the World Series, he stands to win a world record return of over $40m from his bets.
What is less well known is that McIngvale is using these bets to help cover the costs of an offer he runs at his Gallery Furniture store, and it is a quite ingenious way of covering the potential loss his company could make.
Effectively, his bets are hedging the promotions he runs at the store.
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How Does Mattress Mack Hedge His Bets?
For this standard promotions, Mattress Mack offers customers the chance to earn the
money they spend on specific items at his Gallery Furniture stores back if the sports bet tied to the offer, such as the Astros to win the World Series, wins.
Now as you can see, Mattress Mack’s business would be considerably out of pocket if the Astros were to win the World Series, due the refunds he would have to make to customers who took up the offer.
However, by placing these big sports bets, he effectively insures against that as if the Astros do win, then his sports bet would also win and cover the payout from his business, as well as probably leaving him with a tidy profit too.
On the flip side, if the Astros lose, his bet loses too, but he does not have to shell out for the promotion.
And the reason he has likely made one of his biggest ever bets on the Astros is that this year he has offered customers that buy furniture from his store a double-your-money-back offer if the Astros were to win the World Series.
Mattress Mack will be hoping that the Astros can deliver on his bet as he has suffered something of a mixed streak with his big money bets in recent times.
He pocketed $1m when the Bengals beat the Titans in the NFL Playoffs earlier this year and he also landed a very healthy return of $15m when Kansas won the NCAA Tournament back in April.
However, he has lost considerable sums when backing the Bengals to beat the Rams in the Super Bowl ($4.5m) and he also bet big money on the Titans and Patriots to win the Super Bowl last year too.
That came after his $3.6m loss when the Astros could not beat the Braves in the World Series, a $6.2m loss when Alabama lost the CFP title to Georgia and in the recent Kentucky Derby, Mattress Mack bet $2.6m on the race and lost it all.
Strong Start By The Astros
In one sense, Mattress Mack will be happy to see his Houston Astros at the top of the American League West, with a 23-13 record, ahead of the Los Angeles Angels, who look to be their main contenders in the division.
Only the Angels (who have played two more games than the Astros) and the New York Yankees have won more games than the Astros so far this season.
BetMGM Sportsbook has the Astros as one of the favorites to win the World Series this year at 8/1.
And Mattress Mack’s customers will be amongst those hoping that the Astros can go one better this year and win it all, and in doing so award them double the money back that they spent on their mattress.