MJM Sports provides gaming for "average Joe"

What: MJM Sports, based in Seattle.

Who: Marc Malone, chief executive, 34.

What it does: Develops contests and sweepstakes for bars and restaurants; started with a kiosk machine for fantasy sports

Employees: 12.

How it started: Malone wanted to be a sports broadcaster, but after working as an intern for KOMO he started a company related to college fantasy football. MJM Sports launched in 2001 to a rocky start. A software developer didn't work out, and a deal fell through with a national magazine company.

Inspiration hits: Malone went to his girlfriend's house for sympathy, but got tough love instead. She told him to overcome his setbacks and move on.

The next day, he said, he got the idea to create a machine for fantasy sports at bars and restaurants. It took two years to develop the technology.

How it works: Customers take about three minutes to draft their team rosters for the week. The teams are made up of real-life athletes, and success depends on how well the athletes play that week. The service is free for customers, and top teams can win prizes from the establishments and from MJM Sports.

Sales strong: MJM increased the price of the machines recently, and now sells each with a multiyear service plan for $7,000 to $9,000. Bars and restaurants get access to the e-mail addresses of patrons who sign up on the machine and can target those people with direct marketing.

The machine, now in 130 locations, is designed to bring customers back and increase the frequency of their visits, Malone said.

The sporting gamut: The kiosks offer college and professional football and basketball, NASCAR, professional bowling and Major League Baseball. "It's a chance for the average-Joe fan to be the owner, the coach, the general manager and everything else," Malone said.

Advertising sales: Each kiosk is accompanied by a large-screen television that can display advertising, another source of revenue to MJM. The company isn't profitable overall, but made a profit in June and July, Malone said.

Up next: MJM Sports is talking to convenience stores about hosting a trivia contest. Nearly half of the people who get gas at a convenience store don't leave the pump to go inside, Malone said. The trivia machine might entice them to change that behavior. MJM is also developing a system for grocery stores and considering ideas for fast-food restaurants. "We really feel that there's not any industry that we could not tweak a game for," he said.

— Kim Peterson