Sports Betting Resembles Wall Street TradingJake Cooper | 07 Apr 2017
The world of sports betting is starting to very closely resemble the layout of the infamous Wall Street. Gambling on sports is being altered by the introduction of real-time wagering, data analysis tools, fund managers, and groundbreaking risk analysis, improving both the way punters bet and their understanding of the wagers they’re making.
Last year, the Nevada Gaming Control Board posted total sports wager values of $4.5 million. With such a huge amount at stake, bettors are quickly learning that using cutting-edge data analysis tools, many of which are often used in trading, can offer them better odds and many other perks in the long run.
Collective Intelligence And In-Play Bets Evolving Betting
Online betting guides are an exceedingly popular way for bettors to ensure the best sports picks for their wagers. The prediction models used at many top sites are based on a model very similar to the ‘collective intelligence’ algorithms used by financial institutions. The model gathers opinions and data from a large group of people, singling out profitable betting patterns and making accurate predictions.
High frequency betting is also on the rise. Bets made during live sports games are quickly taking over, with 20% of all the bets placed at William Hill last year being made ‘in-play’. Of course, this 33% increase over the previous year has created a huge demand for real-time data too.
Ultra-fast, accurate betting data offers gamblers a significant advantage over bettors that are working over a television feed, which typically has a 5 to 10 second delay. Called courtsiding, the advantage of rapid in-game data can be compared to a trader acting on big news a few seconds before anyone else hears about it. The edge is most noticeable in games in which important events can cause wide fluctuations in both prices and odds.
Entity Bets And Watchdogs Increase Sports Bet Returns
Some professional punters have also begun to act as fund managers, pooling together cash from backers who are looking to improve their returns. This practice of entity betting was legalised in 2015, and sees sports betting as an opportunity for investment, much like the world of trading.
Some companies have even begun to use computer algorithms to look for overvalued spreads in gambling and bet against them, which is a similar practice to Wall Street’s own method of singling out over- or under-valued stocks.
Industry watchdogs have also become common practice, especially since an increasingly complex betting industry can form the perfect environment for cheating. Dedicated companies are now tracking suspicious or fraudulent activities at all times using high-tech algorithms and reporting systems, creating a safer landscape for avid real money punters.