Inside This Sports Gambling Billionaire's Next Big Bet: Home Fitness | Forbes

Key Concepts

Risk management, probability, fitness & wellness, at-home fitness devices, sports statistics, software development, sports betting, SPAC merger, motivation, AI-generated trainers, personalized workouts, data-driven fitness, social fitness, user engagement, investment, IPO, wellness ecosystem.

Early Life and Career

Shalom McKenzie emphasizes that life is about risk management and assessing probabilities of success and ROI. He was motivated to focus on fitness and wellness after losing his father at 18. His background is in gaming, but he always had an interest in fitness and wanted to help people live longer and healthier lives. He founded Tenbet in 2002 with a friend, starting with limited capital and focusing on offering the best odds in the market. They developed sophisticated software to identify sharp vs. recreational customers and effectively manage odds. Recognizing the potential of technology, he founded SBTech in 2007, aiming to work with larger operators and reduce marketing expenses. SBTech became the largest software provider for sports betting companies.

SBTech and DraftKings Merger

In October 2020, McKenzie celebrated SBTech's merger with DraftKings via a SPAC in a $975 million deal. He recounts a story about betting with an employee on weight loss, which led to the employee transforming his lifestyle with a personal trainer and chef. This experience inspired the creation of AMP Fitness.

AMP Fitness: The Product

AMP Fitness is a wall-mounted, at-home workout device, similar to Tonal, Alter, and Mirror, but with unique features. It costs nearly $2,000 with a $23 monthly subscription.

• Digital Crossover Device: It offers resistance up to 100 lbs.
• Adjustable Angles: It has three adjustable angles.
• Electromagnetic Motor: Uses a silent electromagnetic motor to create resistance from 5 lbs to 100 lbs, controlled by a dial.
• Zero Gravity: The electric magnet motor makes it easy to pull up or down.
• Personalized Workouts: Provides personalized workouts with AI-generated and human trainers. The resistance, duration, and intensity adjust based on user progress.

AMP Fitness: Key Features and Motivation

McKenzie was driven by the lack of data available about one's own body compared to data available on mobile devices or cars. He wanted a device that acts as a personal trainer, counting reps, calculating progress, and providing tailored workouts based on goals.

• Data Tracking: Tracks workout history, bench press progress, and other metrics.
• Personalized Training: Provides the right workouts and movements based on individual goals.
• Motivation and Engagement: Designed to be a fun and social experience, allowing users to compete with each other and track progress.

Investment and Future Plans

McKenzie personally invested about $50 million to seed AMP, with additional investment from friends and family. He believes his experience as a second-time entrepreneur in the gaming industry, with expertise in technology and product development, gives AMP an advantage. He aims to take AMP public in the next 3-4 years. He envisions AMP expanding beyond strength training into a broader wellness ecosystem, encompassing nutrition, supplements, sleep, and data-driven insights for overall health and performance.

Notable Quotes

• "Eventually in life everything is about risk management and odds."
• "...investing into people that I'm recruiting and that I know that they can deliver and investing in a product and technology that I believe in and I know that is going to revolutionize this space."

Technical Terms and Concepts

• ROI (Return on Investment): A measure of the profitability of an investment.
• SPAC (Special Purpose Acquisition Company): A company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company.
• AI-generated trainers: Artificial intelligence programs that create and guide users through workout routines.
• Electromagnetic motor: A motor that uses electromagnetic force to produce mechanical motion.

Synthesis/Conclusion

Shalom McKenzie's journey from sports betting software to at-home fitness is driven by a focus on risk management, technology, and user engagement. AMP Fitness aims to disrupt the market by providing personalized, data-driven workouts within a social and engaging platform. McKenzie's experience, significant personal investment, and vision for a broader wellness ecosystem position AMP for potential success and a future IPO.