We examine 330,857 trades of prediction market contracts, the values of which are based on against-the-spread outcomes of NFL games, and find the presence of a significant reverse favourite-longshot bias. Surprisingly, the timing of this bias is identical to that observed in traditional...

From 2000 to 2008, Tradesports operated an online betting site where gamblers used real money to wager on the outcomes of various sporting events. A critical difference between Tradesports and traditional casino-type venues is that participants were allowed to place wagers after underlying...

We explore sports gambler and bookmaker behavior by examining the pregame price movements of sports contracts listed on the Tradesports betting exchange. The vast majority of prior gambling studies that examine the price efficiency of bookmaker-style betting markets and the associated...

Prediction markets add value when they produce unbiased forecasts. However, several prior studies find persistent biases when examining prediction market sides contracts. Sides contracts represent bets on whether the score differential between two teams in a contest will be greater or less than...

In this paper we explore the profit-taking tactics employed by informed traders when there are informational asymmetries across investors. Our laboratory is Tradesports, which until 2015 operated a double auction exchange where participants traded binary options contracts. This venue is a close...

On October 12, 2012, Florida State University hosted a two-hour roundtable panel entitled “Corruption and Manipulation in Sports” in Tallahassee, Florida.1 Panelists included Rick Borghesi, Sean Patrick Griffin, Katarina Pijetlovic, Jeff Reel, and Brian Tuohy. Ryan Rodenberg moderated the...