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INTERNET SPORTS BOOKS OPERATING IN AN INEFFICIENT MARKETPLACE

George Diemer

Abstract


This research challenges widely accepted theories regarding sports gambling and the bookmaking industry.  Specifically, the assertions by Strumpf (2003) and Levitt (2004) that risk-seeking bookmakers maximize profit rather than minimize exposure is tested. To do so, this research focuses on an area that few scholars have explored: internet sports books.  A unique data set to analyze the dynamics of competition in NFL gambling industry is used along with a different estimation technique than other scholars have used: cluster analysis. The results of cluster analysis offer insight into the data structure. An alternate hypothesis regarding the workings of the industry are tested to better understand this data structure.


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References


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Strumpf, K. 2003. Illegal Sports Bookmakers. Working Paper. Department of Economics, University of North Carolina, Chapel Hill, Available from http://www.unc.edu/~cigar/papers/Bookie4b.pdf; accessed 29 June 2007.

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Data was collected and checked from the following sites:

www.sbrlines.com

www.betswwts.com

www.pinnaclesports.com

www.vipsports.com

www.betjamaica.com

www.betcris.com

www.hollywoodsportsbook.com

www.5dimes.com

www.bowmans.com

www.canbet.co.uk

www.wsex.com

www.mrnfl.com




DOI: https://doi.org/10.5750/jgbe.v3i1.539

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