The Sports-Betting Market: A Road to Sports Betting as Viable Investing
Tyler Gottlieb | 27 Vand. J. Ent. & Tech. L. 553 (2025)
Since its legalization, sports betting has experienced rapid growth, both in terms of economic output and expansion into more states. The current system of sports betting in the United States requires individuals to place bets using a sportsbook. The sportsbook sets the lines on every bet. If an individual wins their bet, the sportsbook pays them money according to the listed odds. If an individual loses their bet, the sportsbook keeps the amount staked. Sportsbooks set lines in a way to ensure that on average, they make money on every bet. This system has been widely accepted, often based on the common understanding that “the house always wins.” When the house wins, the individual loses. Sports betting in its current state is riddled with pricing inefficiencies that can be best remedied by treating sports betting as a market in which individuals can buy and sell bets. By reimagining the way sports betting is regulated, a system can be created where individuals can place bets at fair prices and be rewarded with gains based on superior ability. By thinking of sports betting like a capital market, it becomes clear how flawed the current system is, and we can draw inspiration from other capital markets to create a vision of an efficient sports-betting marketplace that protects investors instead of exploiting them.