Latest Posts

Beautiful Life Quotes

lifestyles can be stunning or difficult depending on so many factors. but, on the difficult instances if we can locate consolation, it certain might...

Top 10 SEO Tips

search engine optimization is the method via which seek engine scores are elevated for a website. There are varieties of seo's - White Hat...

Beauty Hair Products

There are plenty of beauty hair merchandise on the market to convert your hair and provide it the movie big name treatment. You do...

Cosmetic Treatments

What comes on your mind whilst you take a look at "cosmetics"? worn-out, it's a ways creams, oils, powders, lotions and a large variety...

Getting an Edge in Sports Betting: Contrarian Sports Investing




Many people enjoy sports, and sports fans often enjoy placing wagers on the outcomes of sporting events. Most casual sports bettors lose money over time, creating a bad name for the sports betting industry. But what if we could “even the playing field?”

If we transform sports betting into a more business-like and professional endeavor, there is a higher likelihood that we can make the case for sports betting as an investment.

The Sports Marketplace 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 phrase “sports investing” around. But what makes something an “asset class?”

An asset class is often described as an investment with a marketplace – that has an inherent return. The sports betting world clearly has a marketplace – but what about a source of returns?

For instance, investors earn interest on bonds in exchange for lending money. Stockholders earn long-term returns by owning a portion of a company. Some economists say that “sports investors” have a built-in inherent return in the form of “risk transfer.” That is, sports investors can earn returns by helping provide liquidity and transferring risk amongst other sports marketplace participants (such as the betting public and sportsbooks).

Sports Investing Indicators

We can take this investing analogy a step further by studying the sports betting “marketplace.” Just like more traditional assets such as stocks and bonds are based on price, dividend yield, and interest rates – the sports marketplace “price” is based on point spreads or money line odds. These lines and odds change over time, just like stock prices rise and fall.

To further our goal of making sports gambling a more business-like endeavor, and to study the sports marketplace further, we collect several additional indicators. In particular, we collect public “betting percentages” to study “money flows” and sports marketplace activity. In addition, just as the financial headlines shout, “Stocks rally on heavy volume,” we also track the volume of betting activity in the sports gambling market.

Sports Marketplace Participants

Earlier, we discussed “risk transfer” and the sports marketplace participants. In the sports betting world, the sportsbooks serve a similar purpose as the investing world’s brokers and market-makers. They also sometimes act in manner similar to institutional investors.

In the investing world, the general public is known as the “small investor.” Similarly, the general public often makes small bets in the sports marketplace. The small bettor often bets with their heart, roots for their favorite teams, and has certain tendencies that can be exploited by other market participants.

“Sports investors” are participants who take on a similar role as a market-maker or institutional investor. 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.

Contrarian Methods

How can we capture the inherent returns of the sports market? One method is to use a contrarian approach and bet against the public to capture value. This is one reason why we collect and study “betting percentages” from several major online sports books. Studying this data allows us to feel the pulse of the market action – and carve out the performance of the “general public.”

This, combined with point spread movement, and the “volume” of betting activity can give us an idea of what various participants are doing. Our research shows that the public, or “small bettors” – typically underperform in the sports betting industry. This, in turn, allows us to systematically capture value by using sports investing methods. Our goal is to apply a systematic and academic approach to the sports betting industry.

Daniel Fabrizio is the president and founder of http://www.SportsInsights.com, a leader in the sports information industry. Dan has more than 10 years of experience in the sports marketplace industry as a risk manager for online sportsbooks, and is the innovator behind SportsInsights’ successful contrarian approaches.




Latest Posts

Beautiful Life Quotes

lifestyles can be stunning or difficult depending on so many factors. but, on the difficult instances if we can locate consolation, it certain might...

Top 10 SEO Tips

search engine optimization is the method via which seek engine scores are elevated for a website. There are varieties of seo's - White Hat...

Beauty Hair Products

There are plenty of beauty hair merchandise on the market to convert your hair and provide it the movie big name treatment. You do...

Cosmetic Treatments

What comes on your mind whilst you take a look at "cosmetics"? worn-out, it's a ways creams, oils, powders, lotions and a large variety...

Don't Miss

How To Get Ready For A Long-Term International Trip

Taking a trip out of the country can be overwhelming. There are lots of important details to tend to before you leave your home...

Classic Dubai and Abu Dhabi Private Tour

The accommodation in Dubai at the Time Grand Plaza Hotel offers some notable features like the fitness center or the rooftop swimming pool that...

How Expensive Is It to Winter in the Sun?

Is it expensive to winter in the sun? Well I can only speak as I have experienced life in Spain. It does depend on...

Helpful Tips to Follow While Buying Luggage

You might have asked yourself the question of how to buy good luggage many times. There are certain important points to take into consideration...

Traversing the Birthplace of Jazz

Situated in southeastern Louisiana, the City of New Orleans straddling the Mississippi River, is a city full of flare, flamboyance, zeal and zest towards...

Stay in touch

To be updated with all the latest news, offers and special announcements.