There is not much difference between betting on sports and betting on stocks. Here is a discussion on high-tech wagering and its close resemblance to Wall Street.
1. Global Marketplace
There is a common misconception that sports bettors are playing against the sportsbook. This is simply not true as today bettors are playing against a worldwide marketplace, and this is similar to what happens on Wall Street.
2. Prediction model
Gamblers these days can find a host of sources online such as Betting Top 10 to guide them about the best sports picks and help them place bets. These services offer suggestions based on a prediction model that resembles “Collective Intelligence” as used by the big banks.
3. Real-time data
While traditionally sports betting involved bettors making calls before the start of a tournament, these days bets made during live games are increasing at a rapid pace. This is, in turn, increasing the demand for real-time data. Fast and accurate data gives gamblers an edge over someone functioning on a few seconds delay via a television feed. This practice is referred to as “courtsiding” and the benefit that real-time data offers bettors can be compared with a trader acting on some information about an acquisition seconds before their competitors.
4. Entity betting
Some bettors have started to don the hat of a fund manager, accumulating money from bettors who want better returns. Entity betting was legalized in 2015 and enables people to set up a fund offering betting as an investing opportunity. Just like the method of arbitrage in Wall Street in undervalued and overvalued stocks, a computer model is employed to find overvalued gambling spreads for bettors to place bets against them.
5. Check fraud
Just like the Wall Street, there are watchdogs in the betting industry too. There are businesses in the sports industry that check for fraud in online gambling. Bettors are relying on consultants and technology to ensure a fair market.
These are just some of the similarities between the two different kinds of betting. Bettors in both the cases deploy similar methods to get favorable results.