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Sportsbooks and politicians: Place your bet!

Author

Listed:
  • Raventós, Pedro
  • Zolezzi, Sandro

Abstract

Betting on sports is widespread. Book making can be profitable but the practice is illegal in the United States. The internet allows this activity to move to offshore locations like Costa Rica. The internet also lowers entry barriers and makes pricing more transparent which could lead to hyper competition. Using odds for four World Cup soccer games the case reader can calculate the expected profitability for several bookies (sportsbooks). Price dispersion does not disappear with the internet, even for gambling which entails no movement of merchandise. Strategy is important. Sportsbooks must decide on segments, product mix and geographic scope.

Suggested Citation

  • Raventós, Pedro & Zolezzi, Sandro, 2011. "Sportsbooks and politicians: Place your bet!," Journal of Business Research, Elsevier, vol. 64(3), pages 299-305, March.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:3:p:299-305
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    References listed on IDEAS

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    2. Strumpf, Koleman, 2003. "Illegal Sports Bookmakers," Working Papers 181, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    3. Steven D. Levitt, 2004. "Why are gambling markets organised so differently from financial markets?," Economic Journal, Royal Economic Society, vol. 114(495), pages 223-246, April.
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