Rule Change Opportunities

A discussion on how regulatory changes create business opportunities, focusing on examples from lottery and college sports.

Key Principle: Rule Changes = Business Opportunities

• When regulations change, new business models become possible
• Need to monitor industry regulations for potential opportunities
• First movers can capture significant market share

Example 1: Online Lottery Business

Pros:

• Potential for rapid growth
• Social features like ticket splitting with friends
• Digitizing offline behaviors (office pools, group buying)

Challenges:

• Heavy reliance on customer acquisition through Facebook/Google
• Risk of platform bans could destroy the business
• Complex state-by-state legal requirements
• Limited to specific states with legal framework

Example 2: College Athletes NIL (Name, Image, Likeness)

Business Opportunities:

• New market for athlete representation
• Local sponsorship deals
• Brand partnerships
• College athletes can now earn significant income
  • Example: Alabama quarterback earned 7-figures before playing

Entrepreneurial Approach:

• Target local businesses for athlete partnerships
• Build relationships with college athletes early
• Focus on local market opportunities
• Potential to become an agent/representative
• Similar to music industry manager origins (e.g., Scooter Braun)

Strategy for Identifying Opportunities:

• Monitor regulatory changes in industries
• Look for digitization opportunities of offline behaviors
• Focus on industries with significant money flow
• Build relationships early in emerging markets
• Consider local market opportunities first
• Move quickly when regulations change