The Book of the Week is “Double or Nothing” by Tom Breitling with Cal Fussman, published in 2008. This short ebook describes the business partnerships between the author and Tim Poster.
Poster had a passion for gambling. In high school he and a friend acted as a bookie and made bets on professional sports, from which they won a lot of money, except for one particular boxing match. In the late 1980′s, while still in college, Poster started a hotel telephone reservation service called Travelscape. Breitling joined the business, and it kept growing in leaps and bounds. Travelscape was an early adopter of internet technology, launching an online reservation system in 1998, during which it made $20 million in sales. In 1997, it had made $12 million in sales.
Their partnership was based on trust symbolized by a handshake, rather than on legal documents. Their synergistic personalities made the business successful. Nevertheless, in 1999 when a competitor offered to buy their business, they were at a grave disadvantage due to their inexperience in multi-million dollar deal-making. The situation was extremely stressful for them.
The author describes what eventually happened, the mistakes they made and what they learned from the experience, and goes on to discuss their successes and failures in connection with another business venture– a casino.
About a year later, the partners were negotiating sale of the casino. The potential buyers consisted of two different suitors– a pair of humble, trustworthy brothers who were their close friends, and a narcissistic, petty owner of a collection of properties then worth $700 million (not Donald Trump).
The author relates that at that time, Fortune magazine had ranked the brothers’ company in the top twenty of its list of “Best Companies to Work For in America.” Job satisfaction among employees at the casino owned by the brothers was apparently so high, the employees saw no reason to unionize. That would actually be a problem if the casino was to merge with Poster’s and Breitling’s casino, as the latter was unionized.
Read the book to learn how Poster and Breitling fared with a reality TV show in their casino; how relaxing betting limits, and cheating or lucky gamblers can put a casino out of business; and the details of what transpired when they allowed their businesses to be bought.