Modern sports betting and prediction markets operate as a fragmented ecosystem rather than a single unified market. Each sportsbook set odds to balance flows on either side of each bet. If flows are random across different sportsbooks, odds could vary across sportsbooks, potentially creating arbitrage opportunities by betting on mutually exclusive events on different sportsbooks. Using APIs linked to various sportsbooks, I find that arbitrage opportunities occur with a fairly regular frequency with ROI ranging from a fraction of a percent up to roughly 20%.
Acknowledgements: I would like to thank Tomas Dvorak.
Presenting
Primary Speaker
Luke Erlandsen
Faculty Sponsors
Tomas Dvorak
Abstract Details
Presentation Type
Faculty Department/Program
Faculty Division
Do You Approve this Abstract?
Approved
Schedule
Time Slot
Room
Topic
Moderator
Tomas Dvorak