Sports betting
Encyclopedia
Sports betting is the activity of predicting sports results and placing a wager on the outcome.
team will win its division or buying a football "square" for the Super Bowl
, sports betting is commonly performed through a bookmaker
or through various online Internet
outlets. The many types of bets include:
of 1961 was an attempt by the US government to prevent illegal bookmaking. However, this Act does not apply to other types of online gambling
. The Supreme Court
has not ruled on the meaning of the Federal Wire Act as it pertains to online gambling
.
Bookmakers usually hold a 11-10 advantage over their customers—for small wagers it is closer to a 6-5 advantage—so the bookmaker will most likely survive over the long term. Successful bookmakers must be able to withstand a large short term loss. (Boyd, 1981)
Many of the leading gambling bookmakers from the 1930s to the 1960s got their start during the prohibition era of the 1920s. They were often times decendents of the influx of immigrants coming into the USA at this time. Although the common stereotype is that these bookies were of Italian decent, it has been proven that many of the leading bookies were of eastern European Jewish Ancestry. (Davies, 2001)
for different outcomes in single bet are presented either in European format (decimal odds), UK format (fractional odds), or American format (moneyline odds). European format (decimal odds) are favored in continental Europe, Canada, and Australia. They are the ratio of the full payout to the stake, in a decimal format. Decimal odds of 2.00 are an even bet. UK format (fractional odds) are favored by British bookmakers. They are the ratio of the amount won to the stake. Fractional odds of 1/1 are an even bet. US format odds are favored in the United States. They are the amount won on a 100 stake when positive and the stake needed to win 100 when negative. US odds of 100 are an even bet.
In Asian betting markets, other frequently used formats for expressing odds include Hong Kong, Malaysian, and Indonesian-style odds formats. Odds are also quite often expressed in terms of implied probability, which corresponds to the probability with which the event in question would need to occur for the bet to be a breakeven proposition (on the average).
Many online tools also exist for automated conversion between these odds formats.
has threatened to ban all playoff games in Delaware if the state allows betting on college sports. New Jersey, which is also interested, has been similarly threatened. Interestingly for New Jersey, a Fairleigh Dickinson University
Public Mind poll found in April 2009 that 63% of New Jerseyians supported legalizing sports betting in Atlantic city and at horse-racing tracks. However, only 48% of New Jersey voters approved of legalizing betting at off-track betting establishments. A slight majority of New Jersey voters (53%) also disapproved of legalizing sports betting nationally. In March of 2010, a national PublicMind poll found that 39% of Americans would support changing laws so that sports betting would be allowed in all states, whereas 53% reported that they would not support such measures. Converse to national opinion, a February 2011 PublicMind found that 53% of New Jersey voters supported legalizing betting in all states while 34% reported they would not support it. Equally, a majority of New Jersey voters (55%) believed that "lots of people bet anyway, so government should allow it and tax it." Proponents of legalized sports betting generally regard it as a hobby for sports fans that increases their interest in particular sporting events, thus benefiting the leagues, teams and players they bet on through higher attendances and television audiences. Opponents fear that, over and above the general ramifications of gambling
, it threatens the integrity of amateur and professional sport
, the history of which includes numerous attempts by sports gamblers to fix matches
. In the 2009 PublicMind poll, the possibility of corrupting sports was the main concern of New Jersey voters (54%) that opposed legalizing sports betting nationally. Similarly, the 2010 PublicMind national poll found that a majority of Americans shared the views of New Jersey voters in the 2009 poll with 54% of respondents reporting that "legal betting on sports is a bad idea because it promotes too much gambling and corrupts sports." On the other hand, proponents counter that legitimate bookmakers will invariably fight corruption just as fiercely as governing bodies and law enforcement do. Most sports bettors are overall losers as the bookmakers odds are fairly efficient. However, there are professional sports bettors that make a good income betting sports, many of which utilize sports information services.
In areas where sports betting is illegal, bettors usually make their sports wagers with illicit bookmakers (known colloquially as "bookies") and on the Internet
, where thousands of online bookmakers accept wagers on sporting events around the world. The PublicMind's 2010 national survey found that 67% of Americans did not support the legalization of Internet betting websites in the United States whereas 21% said they would support legalization. The National Football League is fully against any sort of legalization of sports betting The NFL strongly protests it as to not bring corruption into the game. On the other hand, the CEO of the International Cricket Council believe sports betting, in particular in India, should be legalized to curb illegal bookies where match fixing has occurred from nontransparent bookmakers. Many of the illegal proceeds also go to fund terror, drugs and other illegal activities.
faced the Cincinnati Reds
in the World Series
. This series would go down as one of the biggest sports scandals of all time. As the story goes, professional gambler Joseph Sullivan paid eight members of the White Sox around 10,000 dollars each to fix the World Series. The players involved were Oscar Felsch, Arnold Gandil, Shoeless Joe Jackson
, Fred McMullin, Charles Risberg, George Weaver, and Claude Williams. All of these players have been banned for life. (Finley, 2008)
Rule #21--It's nailed to every clubhouse door and every ballpark in the country:
"Any player, umpire, or club or league official or employee, who shall bet any sum whatsoever on any baseball game in connection with which the bettor has a duty to perform shall be declared permanently ineligible."
This rule is why Pete Rose
was given a lifetime ban from baseball after being caught for betting on baseball. (Rose, 2004)
United States of America
Aside from simple wagers such as betting a friend that one's favorite baseballBaseball
Baseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
team will win its division or buying a football "square" for the Super Bowl
Super Bowl
The Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...
, sports betting is commonly performed through a bookmaker
Bookmaker
A bookmaker, or bookie, is an organization or a person that takes bets on sporting and other events at agreed upon odds.- Range of events :...
or through various online Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
outlets. The many types of bets include:
- Proposition betProposition betIn gambling, the term "proposition bet" has two definitions.-Primary definition:...
s are wagers made on a very specific outcome of a match. Examples include guessing the number of goals each team scores in a handballTeam handballHandball is a team sport in which two teams of seven players each pass a ball to throw it into the goal of the other team...
match, betting whether a player will score in a footballFootballFootball may refer to one of a number of team sports which all involve, to varying degrees, kicking a ball with the foot to score a goal. The most popular of these sports worldwide is association football, more commonly known as just "football" or "soccer"...
game, or wagering that a baseballBaseballBaseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
player on one team will accumulate more hits than another player on the opposing team. - ParlaysParlay (gambling)A parlay or accumulator is a single bet that links together two or more individual wagers and is dependent on all of those wagers winning together. The benefit of the parlay is that there are much higher payoffs than placing each individual bet separately since the difficulty of hitting it is much...
involve multiple bets (usually up to 12) and will reward a successful bettor with a large payout. For example, a bettor could include four different wagers in a four-team parlay, whereby he is wagering that all four bets will win. If any of the four bets fails to cover, the bettor loses the parlay, but if all four bets win, the bettor receives a substantially higher payout (usually 10-1 in the case of a four-teamer) than if he made the four wagers separately. - Progressive parlayProgressive parlayA progressive parlay is a joint wager on multiple events, for example team sports or horse races. Generally a progressive parlay involves a joint wager on four to twelve separate events. Should all the selected bets win, the bettor receives a relatively large payout, because of the sizable odds...
s. A progressive parlay involves multiple bets (usually up to 12) and rewards successful bettors with a large payout, though not as large as normal parlays. However in a progressive parlay, unlike a regular parlay, a reduced payout will still be made even should some of the bets lose. - Teasers. A teaser allows the bettor to combine his bets on two or more different games. The bettor can adjust the point spreads for the two games, but must get all the games correct to win and recognizes a lower return in comparison to parlays.
- If betIf betAn if bet is a type of gambling bet that consists of at least two straight bets joined together by an if clause that determines the wager process...
s. An if bet consists of at least two straight bets joined together by an if clause which determines the wager process. If the player’s first selection complies with the condition (clause), then the second selection will have action; if the second selection complies with the condition, then the third selection will have action and so on. - Run line, puck line or goal line bets. These are wagers offered as alternatives to straight-up/moneyline prices in baseballBaseballBaseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
, hockeyIce hockeyIce hockey, often referred to as hockey, is a team sport played on ice, in which skaters use wooden or composite sticks to shoot a hard rubber puck into their opponent's net. The game is played between two teams of six players each. Five members of each team skate up and down the ice trying to take...
or soccer, respectively. These bets feature a fixed point spread that (usually) offers a higher payout for the favorite and a lower payout for the underdog (both in comparison to the moneyline). - Future wagers. While all sports wagers are by definition on future events, bets listed as "futures" generally have a long-term horizon measured in weeks or months; for example, a bet that a certain NFL team will win the Super BowlSuper BowlThe Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...
for the upcoming season. Such a bet must be made before the season starts in September, and winning bets will not pay off until the conclusion of the Super Bowl in January or February (although many of the losing bets will be clear well before then and can be closed out by the book). Odds for such a bet generally are expressed in a ratio of units paid to unit wagered. The team wagered upon might be 50-1 to win the Super BowlSuper BowlThe Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...
, which means that the bet will pay 50 times the amount wagered if the team does so. - Head-to-Head. In these bets, bettor predicts competitors results against each other and not on the overall result of the event. One example are Formula OneFormula OneFormula One, also known as Formula 1 or F1 and referred to officially as the FIA Formula One World Championship, is the highest class of single seater auto racing sanctioned by the Fédération Internationale de l'Automobile . The "formula" designation in the name refers to a set of rules with which...
races, where you bet on two or three drivers and their placement among the others. Sometimes you can also bet a “tie”, in which one or both drivers either have the same time, drop out, or get disqualified. - Totalizators. In totalizators (sometimes called flexible-rate bets) the odds are changing in real-time according to the share of total exchange each of the possible outcomes have received taking into account the return rate of the bookmaker offering the bet. For example: If the bookmakers return percentage is 90%, 90% of the amount placed on the winning result will be given back to bettors and 10% goes to the bookmaker. Naturally the more money bet on a certain result, the smaller the odds on that outcome become. This is similar to parimutuel wagering in horse racingHorse racingHorse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
and dog racing. - 2nd half bets. A 2nd half(Second half) bet is also sometimes called a halftime bet. This bet is placed only at halftime of a particular sporting event. This bet can be placed on the spread(Line) or over/under. The resulting bet that is placed is won or lost only on the points scored by both teams in the second half only.
- In-play betting. In-play betting is a feature offered by some online sports books that enables bettors place new bets while a sporting event is in progress.
Bookmaking
The general role of the bookmaker is to act as a market maker for sports wagers, most of which have a binary outcome: a team either wins or loses. The bookmaker accepts both wagers, and maintains a spread (the vigorish) which will ensure a profit regardless of the outcome of the wager. The Federal Wire ActFederal Wire Act
The Interstate Wire Act of 1961, often called the Federal Wire Act, is a United States federal law prohibiting the operation of certain types of betting businesses in the United States. It begins with the text:...
of 1961 was an attempt by the US government to prevent illegal bookmaking. However, this Act does not apply to other types of online gambling
Online gambling
Online gambling, also known as Internet gambling and iGambling, is a general term for gambling using the Internet.-Online poker:Online poker tables commonly offer Texas hold 'em, Omaha, Seven-card stud, razz, HORSE and other game types in both tournament and ring game structures...
. The Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
has not ruled on the meaning of the Federal Wire Act as it pertains to online gambling
Online gambling
Online gambling, also known as Internet gambling and iGambling, is a general term for gambling using the Internet.-Online poker:Online poker tables commonly offer Texas hold 'em, Omaha, Seven-card stud, razz, HORSE and other game types in both tournament and ring game structures...
.
Bookmakers usually hold a 11-10 advantage over their customers—for small wagers it is closer to a 6-5 advantage—so the bookmaker will most likely survive over the long term. Successful bookmakers must be able to withstand a large short term loss. (Boyd, 1981)
Many of the leading gambling bookmakers from the 1930s to the 1960s got their start during the prohibition era of the 1920s. They were often times decendents of the influx of immigrants coming into the USA at this time. Although the common stereotype is that these bookies were of Italian decent, it has been proven that many of the leading bookies were of eastern European Jewish Ancestry. (Davies, 2001)
Odds
OddsOdds
The odds in favor of an event or a proposition are expressed as the ratio of a pair of integers, which is the ratio of the probability that an event will happen to the probability that it will not happen...
for different outcomes in single bet are presented either in European format (decimal odds), UK format (fractional odds), or American format (moneyline odds). European format (decimal odds) are favored in continental Europe, Canada, and Australia. They are the ratio of the full payout to the stake, in a decimal format. Decimal odds of 2.00 are an even bet. UK format (fractional odds) are favored by British bookmakers. They are the ratio of the amount won to the stake. Fractional odds of 1/1 are an even bet. US format odds are favored in the United States. They are the amount won on a 100 stake when positive and the stake needed to win 100 when negative. US odds of 100 are an even bet.
| Decimal | Fractional | US | HongKong | Indo | Malay |
| 1.50 | 1/2 | -200 | 0.50 | -2.00 | 0.50 |
| 2.00 | 1/1 | +100 | 1.00 | 1.00 | 1.00 |
| 2.50 | 3/2 | +150 | 1.50 | 1.50 | -0.67 |
| 3.00 | 2/1 | +200 | 2.00 | 2.00 | -0.50 |
| x | To | Do this |
|---|---|---|
| Decimal | Fractional | x-1 , then convert to fraction |
| Decimal | US | 100*(x-1) if x>=2; -100/(x-1) if x<2 |
| Fractional | Decimal | divide fraction, then x+1 |
| Fractional | US | divide fraction, then 100*x if x>=1; -100/x if x<1 |
| US | Decimal | (x/100)+1 if x>0; (-100/x)+1 if x<0 |
| US | Fractional | x/100, then convert to fraction if x>0; -100/x, then convert to fraction if x<0 |
| Decimal | HongKong | x-1 |
| HongKong | Indo | x if x>=1; (1/x)*-1 if x<1 |
| HongKong | Malay | x if x<=1; (1/x)*-1 if X>1 |
In Asian betting markets, other frequently used formats for expressing odds include Hong Kong, Malaysian, and Indonesian-style odds formats. Odds are also quite often expressed in terms of implied probability, which corresponds to the probability with which the event in question would need to occur for the bet to be a breakeven proposition (on the average).
Many online tools also exist for automated conversion between these odds formats.
Legality
In the United States of America, it is illegal to operate a betting scheme, except in a few states. In many European nations bookmaking (the profession of accepting sports wagers) is regulated but not criminalized. The NCAANational Collegiate Athletic Association
The National Collegiate Athletic Association is a semi-voluntary association of 1,281 institutions, conferences, organizations and individuals that organizes the athletic programs of many colleges and universities in the United States...
has threatened to ban all playoff games in Delaware if the state allows betting on college sports. New Jersey, which is also interested, has been similarly threatened. Interestingly for New Jersey, a Fairleigh Dickinson University
Fairleigh Dickinson University
Fairleigh Dickinson University is a private university founded as a junior college in 1942. It now has several campuses located in New Jersey, Canada, and the United Kingdom.-Description:...
Public Mind poll found in April 2009 that 63% of New Jerseyians supported legalizing sports betting in Atlantic city and at horse-racing tracks. However, only 48% of New Jersey voters approved of legalizing betting at off-track betting establishments. A slight majority of New Jersey voters (53%) also disapproved of legalizing sports betting nationally. In March of 2010, a national PublicMind poll found that 39% of Americans would support changing laws so that sports betting would be allowed in all states, whereas 53% reported that they would not support such measures. Converse to national opinion, a February 2011 PublicMind found that 53% of New Jersey voters supported legalizing betting in all states while 34% reported they would not support it. Equally, a majority of New Jersey voters (55%) believed that "lots of people bet anyway, so government should allow it and tax it." Proponents of legalized sports betting generally regard it as a hobby for sports fans that increases their interest in particular sporting events, thus benefiting the leagues, teams and players they bet on through higher attendances and television audiences. Opponents fear that, over and above the general ramifications of gambling
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
, it threatens the integrity of amateur and professional sport
Sport
A Sport is all forms of physical activity which, through casual or organised participation, aim to use, maintain or improve physical fitness and provide entertainment to participants. Sport may be competitive, where a winner or winners can be identified by objective means, and may require a degree...
, the history of which includes numerous attempts by sports gamblers to fix matches
Match fixing
In organised sports, match fixing, game fixing, race fixing, or sports fixing occurs as a match is played to a completely or partially pre-determined result, violating the rules of the game and often the law. Where the sporting competition in question is a race then the incident is referred to as...
. In the 2009 PublicMind poll, the possibility of corrupting sports was the main concern of New Jersey voters (54%) that opposed legalizing sports betting nationally. Similarly, the 2010 PublicMind national poll found that a majority of Americans shared the views of New Jersey voters in the 2009 poll with 54% of respondents reporting that "legal betting on sports is a bad idea because it promotes too much gambling and corrupts sports." On the other hand, proponents counter that legitimate bookmakers will invariably fight corruption just as fiercely as governing bodies and law enforcement do. Most sports bettors are overall losers as the bookmakers odds are fairly efficient. However, there are professional sports bettors that make a good income betting sports, many of which utilize sports information services.
In areas where sports betting is illegal, bettors usually make their sports wagers with illicit bookmakers (known colloquially as "bookies") and on the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, where thousands of online bookmakers accept wagers on sporting events around the world. The PublicMind's 2010 national survey found that 67% of Americans did not support the legalization of Internet betting websites in the United States whereas 21% said they would support legalization. The National Football League is fully against any sort of legalization of sports betting The NFL strongly protests it as to not bring corruption into the game. On the other hand, the CEO of the International Cricket Council believe sports betting, in particular in India, should be legalized to curb illegal bookies where match fixing has occurred from nontransparent bookmakers. Many of the illegal proceeds also go to fund terror, drugs and other illegal activities.
Nevada
There are 142 places in Nevada that will take sports bets on professional and amateur sports. In 1998, close to 2.3 billion dollars was wagered in these places. Out of this 2.3 billion, the casinos that accepted these bets kept 77.4 million dollars as a profit. This is because the odds are stacked in favor of the casinos. (Thompson, 2001)Famous betting scandals
In 1919, the Chicago White SoxChicago White Sox
The Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
faced the Cincinnati Reds
Cincinnati Reds
The Cincinnati Reds are a Major League Baseball team based in Cincinnati, Ohio. They are members of the National League Central Division. The club was established in 1882 as a charter member of the American Association and joined the National League in 1890....
in the World Series
1919 World Series
The 1919 World Series matched the American League champion Chicago White Sox against the National League champion Cincinnati Reds. Although most World Series have been of the best-of-seven format, the 1919 World Series was a best-of-nine series...
. This series would go down as one of the biggest sports scandals of all time. As the story goes, professional gambler Joseph Sullivan paid eight members of the White Sox around 10,000 dollars each to fix the World Series. The players involved were Oscar Felsch, Arnold Gandil, Shoeless Joe Jackson
Shoeless Joe Jackson
Joseph Jefferson Jackson , nicknamed "Shoeless Joe", was an American baseball player who played Major League Baseball in the early part of the 20th century...
, Fred McMullin, Charles Risberg, George Weaver, and Claude Williams. All of these players have been banned for life. (Finley, 2008)
Rule #21--It's nailed to every clubhouse door and every ballpark in the country:
"Any player, umpire, or club or league official or employee, who shall bet any sum whatsoever on any baseball game in connection with which the bettor has a duty to perform shall be declared permanently ineligible."
This rule is why Pete Rose
Pete Rose
Peter Edward Rose , nicknamed "Charlie Hustle", is a former Major League Baseball player and manager. Rose played from 1963 to 1986, and managed from 1984 to 1989....
was given a lifetime ban from baseball after being caught for betting on baseball. (Rose, 2004)
See also
- Betting poolBetting poolA betting pool, sports lottery, sweep or office pool if done at work, is a form of gambling, specifically a variant of parimutuel betting influenced by lotteries, where gamblers pay a fixed price into a pool , and then make a selection on some outcome, usually related to sport...
- Friendly political wagerFriendly political wagerA friendly political wager is a largely symbolic wager made between politicians representing two cities or areas on the outcome of an important sports contest between teams representing those same two cities or areas. These wagers are most commonly made on the results of playoffs in the National...
- Point shavingPoint shavingIn organized sports, point shaving is a type of match fixing where the perpetrators try to prevent a team from covering a published point spread. Unlike other forms of match fixing, sports betting invariably motivates point shaving. A point shaving scheme generally involves a sports gambler and one...
- OddsOddsThe odds in favor of an event or a proposition are expressed as the ratio of a pair of integers, which is the ratio of the probability that an event will happen to the probability that it will not happen...
- Bookmaking
- Gambling in JapanGambling in JapanGambling in Japan is generally banned by the Criminal Code chapter 23, however there are several exceptions, including betting on horse racing and certain motor sports....
- Financial bettingFinancial bettingFinancial betting refers to the wagering on the price development of a financial instrument at some later date relative to the current price or level of the instrument, against odds offered by a bookmaker...
- Statistical Soccer (Football) PredictionsStatistical Soccer (Football) PredictionsStatistical Football prediction is a method used in sports betting, to predict the outcome of Association football matches by means of statistical tools. The goal of statistical match prediction is to outperform the predictions of bookmakers, who use them to set odds on the outcome of football...
- Sports betting systemsSports betting systemsSports betting systems refers to a set of events that when combined for a particular game for a particular sport represents a profitable betting scenario. Since sports betting involves humans, there is no deterministic edge to the house or the gambler. Systems supposedly allow the gambler to have...
- Arbitrage bettingArbitrage bettingBetting arbitrage, miraclebets, surebets, sports arbitraging is a particular case of arbitrage arising on betting markets due to either bookmakers' different opinions on event outcomes or plain errors. By placing one bet per each outcome with different betting companies, the bettor can make a profit...
- Daily Fantasy SportsDaily Fantasy SportsThe concept of the daily fantasy sports game is relatively new. It takes the traditional fantasy sports model and compresses it into a daily, and sometimes weekly, game.- History :...
Sources
- Davies, Richard (2001). Betting the Line Columbus, Ohio: The Ohio State University Press ISBN 0-8142-0880-0
- Finley, Peter (2008). Sports Scandals Westport, Connecticut: Greenwood Press ISBN 978-0-313-34458-9
- Boyd, Kier (1981). Gambling Technology Washington, DC: FBI Laboratory
- Rose, Pete (2004). My Prison Without Bars St. Martin's Press ISBN 1-57954-927-6
- Thompson, William (2001). Gambling in America--An Encyclopedia of History, Issues, and Society Santa Barbara, CA: ABC-CLIO IBSN 1-57607-159-6