playing field? If we transform sports betting into a more business-like and professional endeavor, we are more likely to make a case for sports betting as an investment.enjoy sports, and sports fans often enjoy placing wagers on the outcomes of sporting events. Most casual industry. But what if we could “even the
The Sports Marketplace as an
How can we make the jump from gambling to investing? Working with a team of analysts, economists, andprofessionals – we often toss the phrase “sports investing” around. But what makes something an “asset class? An asset class is often described as an investment in a marketplace with an inherent return. The sports betting world has a marketplace – but what about a source of returns?
For instance, investorsby owning a portion of a company. Some that “sports investors” have a built-in inherent return in the form of “risk transfer.” Sports investors can earn returns by helping provide liquidity and transferring risk amongst other sports marketplace participants (such as the betting public and sportsbooks).
Sports Investing Indicators
We can take this investing analogy further by studying the sports betting “marketplace.” Just like more traditional assets such as stocks and bonds are based on price, dividend yield, and interest rates – the sports marketplace “price” is based on point spreads or money line odds, and theseover time, just like stock prices rise and fall.
To further our goal of making sports gambling a more business-like endeavor and to study the sports marketplace further, we collect several additional indicators. In particular, we collect public “betting percentages” to learn “money flows” and sports marketplace activity. In addition, just as the financial headlines shout, on heavy volume,” we also track the volume of betting activity in the sports gambling market.
Sports Marketplace Participants
Earlier, we discussed “risk transfer” and the sports marketplace participants. The sports betting world serves a similar purpose as the investing world’s brokers and market-makers in the sports betting world, and they also sometimes act like.
In the investing world, the general public is known as the “small investor.” Similarly, the general public often makes smallmarketplace. The small bettor usually bets with their heart, roots for their favorite teams, and has certain tendencies that other market participants can exploit.
“Sports investors” are participants who take on a similar role as a market-maker or institutional investor. Sports investors use a business-like approach to profit from sports betting. In effect, they take on a risk transfer role and can capture the inherent returns of the sports betting industry.
How can we capture the inherent returns of the sports market? One method is to use a contrarianto capture value. We collect and study “betting percentages” from several major online sportsbooks. Analyzing this data allows us to feel the pulse of the market action – and carve out the performance of the “general public.
This, combined with point spread movement and the “volume” of betting activity, can give us an idea of what various participants are doing. Our research shows that the public, or “small bettors” – typically underperform in the sports betting industry. This, in turn, allows us to systematically capture value by using sports investing methods. We aim to apply a systematic and academic approach to the sports betting industry.