{"id":1931,"date":"2019-02-20T15:41:55","date_gmt":"2019-02-20T15:41:55","guid":{"rendered":"https:\/\/www.planet7casino.com\/?p=1931"},"modified":"2024-03-08T14:12:18","modified_gmt":"2024-03-08T14:12:18","slug":"sports-book-work","status":"publish","type":"post","link":"https:\/\/www.planet7casino.com\/planet-strategy\/sports-book-work\/","title":{"rendered":"How does a sportsbook work?"},"content":{"rendered":"\n
If you\u2019ve ever stepped into your local book makers, or put down a few bob on the Grand National, you\u2019ll probably be familiar with the term \u201csportsbook.\u201d They\u2019re extremely common to find in a lot of brick-and-mortar casinos and racetracks, but also when it comes down to football games, basketball, boxing, and other major sporting events such as the Olympics.<\/p>\n\n\n\n
But how do they actually work when it comes to odds, probabilities, pay outs and the bookies own cut of the bets? In this article, we\u2019ll take a close look at the history of the sportsbook and how it evolved. We also look at the places and countries allowed to operate sportsbooks, and how they play such a key role in the revenue they bring for gambling establishments.<\/p>\n\n\n\n
Although the sportsbook origins aren\u2019t concrete, many believe that the act of sports betting actually dates back to ancient times, when people placed wagers on the outcome and result of an event. Rome is a prime example of this, and is one of the oldest civilizations notorious for gambling during the reign of Julius Caesar.<\/p>\n\n\n\n
Bets would usually be placed on chariot races or the circus, and paid out according to the outcome. There were of course, concerns that gambling posed a direct correlation with organized crime in the city. But the additional tax revenue it generated improved the nation\u2019s public services, so many things that would have been considered a felony at the time, were often overlooked.<\/p>\n\n\n\n
Fast-forward to a few centuries later, during an age where online casinos gained much popularity throughout Europe and Western culture – the rules around sports books became more regulated, as did the ways that you could place wagers. In 1949, bookmakers in the state of Nevada (which is where the majority of sportsbooks are located today) were permitted to take bets on professional sporting activities and horse racing, subject to a 10% tax on every bet. At the time, these bookmakers (known as \u201cTurf Clubs\u201d back then) were separate from the casinos but were still making a steady profit that kept them head-above the gambling industry. Come 1974, this tax was reduced to just 2%. Famous mobster and Stardust casino owner Frank Rosenthal managed to convince legislators to allow sportsbooks within casinos. This lead to the closure of many of these smaller Turf Clubs.<\/p>\n\n\n\n
These days, you can practically bet on any kind of sporting event. And because much of it is handled online, it\u2019s even easier to win ludicrous amounts of money. But you could quickly lose it at the same time. The sports betting industry is now a 24\/7 business which is estimated to bring in a \u201chandle\u201d of approximately $200 billion per annum according to experts. This doesn’t count the illegal sports betting activities conducted in many parts of the US.<\/p>\n\n\n\n
Initially, sportsbooks were handled by specialist \u201ctraders,\u201d who would determine the math, algorithms and statistical automations behind sports betting probabilities and payouts. These days, bookies set their own rules in place, including odds, what bets they accept, and how they pay out the winners.<\/p>\n\n\n\n
With everything now automated, sports betting has become a highly competitive industry. It requires operators to think outside the box when it comes to enticing gamblers. Just having the facility to take bets is not enough. For many it\u2019s now about the overall user experience, whether it be through a mobile app, a free bet offering, or an attractive and familiar website platform in which to find their favorite games and events. All of these things make up a fundamental process in the decision-making for many gamblers choosing to bet on sports and other games these days.<\/p>\n\n\n\n
In many U.S states, sports betting is still an illegal form of gambling. For the ones where it is permitted \u2013 the legislation around it is rather complex. This is particularly true when it comes to online sports betting. The Wire Act of 1961 specifically states that book makers and organizations are not authorized to accept wagers for sports betting. However, there is nothing stipulated in the text that prevents individuals from placing bets, which baffled both parties for many years.<\/p>\n\n\n\n
Currently, the only states exempt from this act are Nevada, Delaware, Montana and Oregon, but again the scope in which this branches out too is limiting for these states. (Delaware for example, are only able to accept bets for parlays on NFL games.)<\/p>\n\n\n\n
New Jersey would have made it as an addition to the exemption list last year. That’s when the Supreme Courts excluded the state from the law. They did this in order for them to implement their own sports betting regulations inside Atlantic City casino establishments. They only had one year to do this, and unfortunately weren\u2019t quick enough to act on the opportunity.<\/p>\n\n\n\n
In Canada, sports betting is legal but very limited. And they can only accept certain wagers on a small selection of sporting events. Citizens are still authorized to gamble for sports online providing they use Canadian betting sites.<\/p>\n\n\n\n
In the UK, practically all online gambling and sports betting is legal and fully regulated. Australia is also permitted to offer most forms of gambling. This includes sports and pari-mutuel betting, providing they use an official bookmaker within the country.<\/p>\n\n\n\n
Sports betting in Europe is a bit more of a grey area. All 50 countries in the union are responsible for their own rules and regulations for sports betting, and each one differs in some way. As long as the entities and bookmakers providing the option to place wagers are fully-licensed, all forms of gambling in Europe are generally seen as ok.<\/p>\n\n\n\n