Open Access Open Access  Restricted Access Subscription or Fee Access


Steve Easton, Katherine Uylangco


There is a wide literature on sports betting markets, a literature that examines the informational efficiency of these markets and uses them as laboratories to test for possible impacts of psychological factors on financial markets. The innovation of this study is the examination of price behaviour in an in-play betting market – namely that for one-day cricket. Cricket provides an ideal construct in which to examine in-play market behaviour, as it is a sport where outcomes can be calibrated as good news or bad news on a play-by-play basis. The results from an examination of over 8000 balls corresponding to over 8000 “news events” shows that the in-play betting market is one in which news is impounded rapidly into betting odds. There is also evidence that odds have a level of predictive ability with respect to outcomes from balls before they are bowled. Further, there is evidence of a drift in odds subsequent to the outcome of balls being known.


Sports Betting, In-Play Betting, Market Microstructure

Full Text:



Asch, P. & R. Quandt, “Efficiency and Profitability in Exotic Bets” [1987] Economica, 54(215) at p289.

Ball, R., Kothari, S. & R. Watts, “Economic Determinants of the Relationship between Earnings Changes and Stock Returns” [1983] Accounting Review, 68 at p622.

Bernard, V. & J. Thomas, “Post-Earnings-Announcement Drift: Delayed Price Response or Risk Premium?” [1989] Journal of Accounting Research, 27 (Supplement) at p1.

Brown, W & R. Sauer, “Fundamentals or Noise? Evidence from the Professional Basketball Betting Market” [1993] Journal of Finance, 48(4) at p1193.

Cain, M., Law, D. & D. Peel, “The Favourite-Longshot Bias and Market Efficiency in UK Football Betting” [2000] Scottish Journal of Political Economy, 47(1) at p25.

Duckworth, F. & A. Lewis, “A Fair Method for Resetting the Target in Interrupted One-Day Cricket Matches” [1998] Journal of the Operational Research Society, 49 at p220.

Engel, M, “Wisden Cricketers Almanack” [2006] John Wisden & Co Ltd, 143rd Edition.

Golec, J. & M. Tamarkin, “The Degree of Inefficiency in the Football Betting Market” [1991] Journal of Financial Economics, 30(2) at p311.

Gray, P. & S. Gray, “Testing Market Efficiency: Evidence from the NFL Sports Betting Market” [1997] Journal of Finance, 52(4) at p1725.

Patell, J. & M. Wolfson, “The Intraday Speed of Adjustment of Stock Prices to Earnings and Dividend Announcements” [1984] Journal of Financial Economics, 13 at p223.

Pope, P. & D. Peel, “Information, Prices and Efficiency in a Fixed-Odds Betting Market” [1989] Economica, 56(223) at p323.

Sauer, R., Bajer V., Ferric S. & M. Marr, “Hold Your Bets: Another Look at the Efficiency of the Gambling Market for National Football League Games” [1988] Journal of Political Economy, 96(1) at p206.

Smith, M., Paton, D., & L. Vaughan Williams, “Market Efficiency in Person-to-Person Betting” [2006] Economica, 73(292) at p673.

Snowberg, E. & J. Wolfers, “Understanding the Favorite-Longshot Bias: Risk Preferences versus Misperceptions” [2005] Research Paper, University of Pennsylvania.

Thaler, R. & W. Ziemba, “Parimutuel Betting Markets: Racetracks and Lotteries” [1988] Journal of Economic Perspectives, 2(2) at p161.

Woodland, L. & B. Woodland, “Market Efficiency and the Favourite-Longshot Bias: the Baseball Betting Market” [1994] Journal of Finance, 49 at p269.

Zuber, R., Gandar, J. & Bowers, B., “Beating the Spread: Testing the Efficiency of the Gambling Market for National Football League Games” [1985] Journal of Political Economy, 93(4) at p800.



  • There are currently no refbacks.