This paper examines whether the outcome bias harms price efficiency in betting exchange markets. In soccer, the match outcome is an unreliable performance measure, as it underestimates the high level of randomness involved in the sport. If bettors overestimate the importance of past match...

On May 14, 2018, the U.S. Supreme Court held in Murphy v. National Collegiate Athletic Association that the Professional and Amateur Sports Protection Act (“PASPA”) violated the Tenth Amendment of the U.S. Constitution, and thus the U.S. government may not use PASPA to prevent states from...

In this paper we propose a new explanation for Favourite-Longshot Bias (FLB). FLB refers to a well known phenomenon, pervasive in many sport betting markets. As measured by historically realised gains, bets on favourites appear to be more favourable than longshot bets. We show that FLB can be...

In this article we discuss bookmaker margins embedded in odds for "1X2" bets in the European football betting markets operated by bookmakers. Bookmaker margins are adjustments applied to fair odds, for the purpose of ensuring profits and compensation for risks undertaken, and to cover overall...

Since Nevada legalized gambling in 1931, casinos have proliferated into the vast majority of states. In 2015, commercial casinos earned over $40 billion. This is quite an impressive growth for an activity that was once relegated to the backrooms of saloons. Indeed, American casino companies are...

Betting markets have been frequently used as a natural laboratory to test the efficient market hypothesis and to obtain insights especially for financial markets. We add to this literature in analyzing the velocity and accuracy in which market expectations adapt to an exogenous shock: the...

The authors investigate whether sports traders who systematically invest in sports betting strategies can outperform hedge fund managers and the S&P 500 from 1st January 2010 to 7th January 2016. The authors take a simple betting strategy based on Horse races in the UK and invest consistently on...

The study sought to assess the impact of sports betting on the investment behaviour of Ghanaians, focusing on sports betting centres within the Accra Metropolis, Ghana. The objectives of this observational study were to determine how individuals perceive the risk of sports lotteries as opposed...

If betting markets are efficient, then the expected loss rate on all bets on a game can be calculated from the quoted odds. Guides to sports betting tell bettors how to do this calculation of the predicted average loss rate. We show that if bookmakers set higher profit margins for bets with...

We compare the properties of betting market odds set in two distinct markets for a large sample of European soccer matches. We confirm inefficiencies in the traditional market for bets on a home win, an away win or a draw as found in previous studies such as Angelini and De Angelis (2019), in...