Search

Despite mixed evidence, sport participants and fans heavily believe in the existence of the hot hand. Prior literature examining NBA and NFL betting markets found betters were biased towards hot teams. Using a unique market and data set, this study identifies if the hot hand is prevalent in daily fantasy baseball contests, if there is a profitable hot hand selection strategy, and if consumers believe in its existence. Results show that while there is no evidence of a hot hand effect, and no evidence of a profitable hot hand strategy, consumers believe in and incorporate it in their lineup decisions. [ABSTRACT FROM AUTHOR]

The “Hot Hand” hypothesis in gambling markets—belief that teams on winning streaks will continue winning—appears to exist in the National Basketball Association (NBA), but not the National Football League (NFL). Past research assumed that bookmakers set point spreads to balance betting volume on games. Recent research shows persistent imbalanced betting in most betting markets, suggesting point spreads may not fully reflect bettor preferences. We find significant increases in bets on teams on winning streaks against the spread in the NFL, suggesting that perceived “hot hand” effects exist in betting on NFL games. Betting with or against streaks does not earn profits for bettors. [ABSTRACT FROM PUBLISHER]

Due to the use of sports wagering market data as a laboratory to test the Efficient Markets Hypothesis, sports bettors have been assumed to behave as investors. With the rejection of the balanced book hypothesis and the persistent support of market efficiency, the notion of the sports bettor as investor should be in doubt. Using betting volume data from online sportsbooks, bettors are shown to substitute out of baseball betting into football betting when the season starts. The authors argue that these findings are consistent with consumer behavior, but inconsistent with the notion of bettors as investors. [ABSTRACT FROM PUBLISHER]

Detailed gambling market data are used to investigate allegations of pointshaving in college basketball by Wolfers. Data on actual sportsbook betting percentages on favorites and underdogs and changes in pointspreads are used to test for evidence of corruption by players and/or coaches of NCAA basketball teams. After establishing a rejection of the balanced book hypothesis, the authors test for corruption in a variety of ways by investigating the games that Wolfers describes as likely situations for pointshaving, specifically games involving big underdogs. In a variety of tests, which include differences in betting percentages on big underdogs who cover and do not cover the pointspread, betting simulations based on thresholds of percentage bet on underdogs, analysis of pointspread movements toward big underdogs, and an analysis of coaches and programs that meet the conditions of Wolfers, little evidence is found to suggest rampant pointshaving in this market. [ABSTRACT FROM AUTHOR]

Fan satisfaction with individual sports games is likely to be an important indicator of future sales of tickets, television and radio advertising, and team merchandise sales. For the 2009-2010 National Football League (NFL) season, NFL.com, the official website of the NFL, had fans enter a ‘‘fan rating’’ for each game of the season. This rating was on a scale of 0—100 with 100 being the most memorable. Using these figures, the authors test the economic hypotheses of the importance of uncertainty of outcome during the game and overall points scored by both teams in the game. As expected, the margin of victory in the game was shown to have a negative and significant effect on the fan rating, implying that fans enjoy uncertainty of outcome as the game is played. In addition, higher scoring games led to higher fan ratings than lower scoring games, implying fan preference for scoring. [ABSTRACT FROM AUTHOR]

This article analyzes betting strategies based on line movements in Major League Baseball and tests for possible evidence of informed bettors. Overall line movements from open to close, first movements, and last movements are studied for the 2003 season for a Las Vegas sportsbook and for the 2006 season for an offshore sportsbook. In the Las Vegas sportsbook, betting against first movements to favorites and betting with last movements to underdogs generates statistically significant profits. The offshore sportsbook appears to be efficient, with the only strategy generating positive, but insignificant returns, being betting against first movements to favorites. Differences between the offshore and Las Vegas betting markets are discussed. [ABSTRACT FROM AUTHOR]