Waterhouse VC is a fund that specialises in global publicly listed and private businesses related to wagering and gaming sectors. The fund is only available to wholesale investors.

Since inception in August 2019, Waterhouse VC has achieved a gross total return of +3,227% (annualised at 87.2%), as at 31 March 2025, assuming the reinvestment of all distributions.

Inside the Mind

What separates extraordinary betting professionals from the average punter? In our exclusive webinar, we gained unprecedented access to the strategic thinking of Tom Dry, one of the world's elite tennis bettors. Professional betting - a sector that can generate consistent returns regardless of economic conditions - represents a compelling but often overlooked investment category. Tom's approach combines analytical rigour with deep domain expertise, offering valuable lessons not just for bettors, but for investors seeking uncorrelated returns in today's volatile markets.

During our in-depth conversation with Tom Dry, we explored the disciplined, analytical, and occasionally counterintuitive realm of professional betting. Although he kept his “secret sauce” under wraps, Tom spoke openly about the mindset, processes, and curiosity that have guided his success.

Early Days

Tom’s journey began fittingly, with a winner. His first ever wager, an 8/1 shot at Goodwood, obliged when he was just nine years old. Still, he didn’t set out to become a professional bettor. Tom studied History and French at Durham University, and like many graduates, initially looked towards more conventional career paths. It wasn’t until after university when Tom would start dabbling in football betting, and he was quickly drawn in by the analytical challenge it offered.

Fate intervened when Tom’s father spotted a recruitment advert for Starlizard, the data-driven gambling syndicate founded by Tony Bloom - widely recognised as the world’s best football bettor and the owner of Brighton & Hove Albion Football Club. As Tom did his own research, he was quickly convinced that working on betting edges was a far more appealing career choice. Tom applied, and was offered the position.

*Brighton owner and Starlizard founder Tony Bloom, who received an MBE, celebrating with the fans. Source: Daily Mail*

The Data Approach

At Starlizard, as with most betting syndicates, the focus is firmly on data. Much like a quant hedge fund, these operations build statistical models to derive accurate probabilities. Everything is factored into these models: form, venue, weather conditions, historical performance, and more. When the model’s implied probability differs from market prices, there’s a potential edge to exploit. Over thousands of bets a year, those edges compound - assuming the models are continually refined and executed with iron discipline.

*Job application requirements for a racing syndicate.*

Bloom’s data-backed philosophy also underpins his success as owner of Brighton & Hove Albion Football Club. Under his stewardship, Brighton has gone from League One to the top tier of English football, and in 2023, the club reached new heights by qualifying for the Europa League for the first time. Their transfer dealings are a testament to the approach:

Brentford FC, owned by Matthew Benham - founder of the Smartodds, and a former colleague of Bloom, reflects a similar story. Benham and Bloom pioneered the now-ubiquitous ‘expected goals’ metric, profiting from it in their betting.

Benham has invested around £100M in Brentford over the past 15 years, and the club is now reportedly valued at over £400M, with Rothschild appointed to explore a potential sale of his majority stake (Source: Sky News). Despite operating with a fraction of the budgets of Premier League giants, both clubs continue to outperform.

Starlizard Days

When Tom joined Starlizard in 2017, his role centred on fine-tuning the football model to capture factors that are difficult for a model to incorporate: team and player motivation, injuries, squad rotation, off-pitch dynamics. In short, adding human insight and sense-checking machine-calculated probabilities. That, Tom argues, is when models become truly valuable.

Tom credits much of his development to the culture at Starlizard. It was flat, ideas-driven, and there was no such thing as a stupid idea, as the only goal was to improve the model. In other words, if you thought a factor was relevant in determining outcomes, there was a chance to test it.

During his time there, Tom began betting personally at a more serious level, focusing on golf and snooker. In snooker, he developed a computer vision model that mapped ball positions and calculated shot difficulty. The edge was significant, but the markets lacked the liquidity to accommodate his desired volume. By this point, Tom knew that betting for himself was the long-term goal - the bets were becoming increasingly meaningful.

Going Solo

‘The foundation of a winning model is unique exclusive, data, that has been crafted by people who really understand the sport’

Tennis was a natural fit. Tom had played from a young age with his brother, and knew the sport intimately. It offered global scale, year-round events, deeper liquidity and an opportunity to build an edge.

In today’s AI-driven world, scraping public data is easy. Everyone has access to the same surface-level stats. But that’s not an edge. Real edge comes from understanding what actually matters in determining outcomes - and building proprietary datasets to test those hypotheses, based on insights others aren’t looking for.

Know your Strengths

Tom puts a huge emphasis on domain expertise. His team is made up of people with thousands of hours of tennis experience - former players, coaches, and obsessive students of the game. Interviews are conducted by watching matches together over Zoom, where candidates must demonstrate a deep understanding of point construction, momentum shifts, and the tactical nuances that shape results.

He’s focused on what he knows. When asked if he’d ever consider betting on cricket, he jokes: “My top score is 13.” Even in tennis, his early attempts at modelling the women’s game fell short. It was a reminder that edge doesn’t come from data alone. It comes from understanding the game on a level others don’t.

Mentality

Tom’s approach is best captured by a line he now lives by: “It’s better to sleep well than to eat well.” He prioritises long-term sustainability over short-term gain, favouring discipline and pragmatism over theory.

He’s sceptical of rigid frameworks - both in staking, like the Kelly Criterion, and in modelling - arguing that while models are useful, they’re only reliable up to a point. “You need at least 1,000 IQ points to beat trial and error,” he jokes. The key, he believes, is staying flexible and letting experience drive adjustments.

His reading list for aspiring bettors:

The Black Swan – Nassim Nicholas Taleb
The Signal and the Noise – Nate Silver

For Tom, a thriving betting operation doesn’t hinge on one “secret sauce.” It’s about constant refinement - synthesising data, expert insights, and a measured mindset to spot opportunities where others see only noise.

Pitch Us

If you know any gambling tech companies seeking capital or distribution support, our new 'Pitch Us' page makes it simple to connect with our investment team.

Media

In a recent interview, Tom discusses Flutter’s recent activity and what the opportunity is for technology suppliers.

For wholesale investors interested in following wagering and gaming industry news and trends, please follow our updates on Twitter (@waterhousevc) or through our website at WaterhouseVC.com.

All the best,

Tom

DISCLAIMER AND IMPORTANT NOTES

Please note the above information in relation to Tom Dry, Starlizard, Tony Bloom, Brighton & Hove Albion F.C., Brentford F.C., Chelsea F.C., Smartodds, ESPN, Sky News, Daily Mail, and Matthew Benham is based on publicly available information and should not be considered nor construed as financial product advice. The Fund currently has a position in Tom Dry’s betting syndicate. The information provided in this document is general information only and does not constitute investment or other advice. Readers should consult and rely on professional investment advice specific to their individual circumstances.

Not for Release or Distribution in the United States of America

This material may not be released or distributed in the United States. This material does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be illegal. The units in the Fund have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the units in the Fund may not be offered or sold in the United States unless they are offered and sold, directly or indirectly, in transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable United States state securities laws.

General Information Only

This material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material has been prepared for investors who qualify as wholesale clients under sections 761G of the Corporations Act or to any other person who is not required to be given a regulated disclosure document under the Corporations Act. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by Sandford Capital, Waterhouse VC or any other person. To the maximum extent possible, Sandford Capital, Waterhouse VC or any other person do not accept any liability for any statement in this material.

Financial Regulatory Oversight and Administration

Waterhouse VC is an Australian Unit Trust denominated in AUD and available to wholesale institutional investors worldwide with a minimum of AUD 500,000 or USD / EUR / GBP / JPY / CHF equivalent. This material has been prepared by Waterhouse VC Pty Ltd (ABN 48 635 494 861) (‘Waterhouse VC’, ‘Trustee’, ‘us’ or ‘we’) as the Trustee of the Waterhouse VC Fund (the ‘Fund’). The Trustee is a corporate authorised representative (CAR 1278656) of Sandford Capital Pty Limited (ABN 82 600 590 887) (AFSL 461981) (Sandford Capital) and appoints Sandford Capital as its AFS licensed intermediary under s911A(2)(b) of the Corporations Act 2001 (Cth) to arrange for the offer to issue, vary or dispose of units in the Fund.

Performance

Past performance of Waterhouse VC is not a reliable indicator of future performance. We make every endeavour to ensure results are accurate. Waterhouse VC Pty Ltd does not guarantee the performance of any strategy or the return of an investor’s capital or any specific rate of return. No allowance has been made for taxation, where applicable. We encourage you to think of investing as a long-term pursuit. Waterhouse VC’s results are indicative only and subject to subsequent year end external financial review.

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