Hypothetical Dual-Gamble

[RocketManJames]

Hypothetically, would this be legal? Would it even work?

Say we pick out a fairly low market cap casino stock... something like MTR Gaming (mkt cap: ~200MM).

Their quarterly profit is around $6-7MM.

Say you had a lot of money, and say you were able to make large bets. I have no idea if this would be allowed at such a small place.

If you were able to somehow lose a decent chunk to them (say ~$3MM), would it be considered trading on inside information, if you went and started buying a ton of stock?

If you somehow managed to win a bit, then no need to take the 2nd gamble and buy stock, instead just keep the winnings.

Totally hypothetical, and I haven't thought it through much, but I was thinking that if you were able to do this slightly before they closed the books on the quarter, then you would probably be able to hold on to your newly bought shares until the actual earnings announcement that would surely have a significant upside surprise.

Any thoughts appreciated.

-RMJ