Many people enjoy sports, and sports fans often enjoy placing bets on the outcome of sporting events. Most casual sports bettors lose money over time, giving the sports betting industry a bad name. But what if we can “even the playing field”?
If we transform sports betting into a more business-like and professional endeavor, there is a higher possibility that we can make sports betting an investment.
Sports market as an asset class
How can we make the jump from gambling to investing? Working with a team of analysts, economists, and Wall Street professionals – we often toss the term “sports investing” around. But what is an “asset class?”
An asset class is often described as an investment with a marketplace – one that has an inherent return. There is clearly a marketplace in the sports betting world – but what about the source of the returns?
For example, investors earn interest on bonds in exchange for lending money. Stockholders earn long-term income by owning a part of a company. Some economists say that “sports investors” have implicit returns in the form of “risk transfer”. That is, 안전놀이터 investors can earn returns by helping to provide liquidity and transferring risk to other sports marketplace participants (such as the betting public and sportsbooks).
Sports Investment Index
We can take this investment analogy a step further by studying the sports betting “marketplace.” Just as more traditional asset values like stocks and bonds are based on prices, dividend yields, and interest rates – sports marketplace “prices” are based on point spreads or money line odds. These lines and odds change over time, just as stock prices rise and fall.
To further our goal of making sports gambling a more business-like endeavor and to further study the sports market, we collect several additional indicators. In particular, we collect public “betting percentages” to study “money flow” and sports marketplace activity. In addition, as financial headlines scream, “stock rally in massive amounts,” we also track the amount of betting activity in the sports gambling market.
Sports Marketplace Participants
Earlier, we discussed “risk transfer” and sports marketplace participants. In the world of sports betting, sportsbooks serve the same purpose as brokers and market-makers in the investing world. They sometimes behave like institutional investors.
In the investment world, the general public is known as “small investors”. Likewise, the general public often places small bets on sports markets. Small bettors often bet with their hearts, rooting for their favorite team, and there are trends that can be absorbed by other market participants.
“Sports investors” are participants who take on the same role as market-makers or institutional investors. Sports investors use a business-like approach to profit from sports betting. In effect, they take on a risk transfer role and are able to capture the inherent returns of the sports betting industry.
How can we capture the underlying returns of sports markets? One approach is to use a contrarian approach and bet against the public to capture value. This is one of the reasons why we collect and study “Betting Percentages” from various major online 메이저놀이터. Studying this data allows us to feel the pulse of market activity – and creates the workings of the “common people”.
This, combined with point spread movement, and the “volume” of betting activity can give us an idea of what different participants are doing. Our research shows that the public, or “small bettors” – generally underperform in the sports betting industry. This, in turn, allows us to systematically capture value using sports investment methods. Our mission is to apply a systematic and academic approach to the sports betting industry.