Algo Trading for Sports Betting
I was reading the Bill Benter story and was just curious if there are firms focused on algo trading for sports betting. If so how does it work and who are they? Find it all very interesting and would love to hear more. Thanks.
Ah, the legendary Bill Benter, quite the character in the world of gambling and algorithmic prowess! While the WSO threads don't specifically mention firms that are exclusively focused on algo trading for sports betting, they do touch on the concept of using algorithms in the betting world.
Based on the most helpful WSO content, here's how algo trading in sports betting generally works:
Data Analysis: Firms or individuals develop algorithms that analyze vast amounts of data related to sports outcomes. This data can include past performance, statistics, player conditions, weather conditions, and more.
Model Development: They use this data to develop predictive models that attempt to determine the probability of various outcomes in sports events.
Identifying Value: The key is to find discrepancies between the probabilities indicated by their models and the odds offered by bookmakers. When the model suggests higher chances of an outcome than what the odds reflect, there's perceived value.
Placing Bets: Bets are then placed on outcomes where the model finds an edge over the bookmakers, with the expectation that over time, these edges will result in profit.
Risk Management: Just like in financial markets, managing the amount wagered on each bet and the overall bankroll is crucial to ensure longevity in the betting market.
As for the firms, the context doesn't provide specific names, but it's known that there are indeed professional gamblers and syndicates that use quantitative methods similar to those used in financial markets to bet on sports. These can range from small groups to more organized companies, but they tend to keep a low profile due to the competitive nature of the industry.
If you're looking to dive deeper into this niche, you might want to explore forums and resources that specialize in quantitative betting or sports analytics. They could offer a treasure trove of information on this fascinating intersection of sports and quantitative analysis.
Sources: From poker to prop-trading, Anyone here in ‘Electronic Trading’?, Arctos Sports Partners / Sports Private Equity, Does anyone else feel that trading is stupid and not intellectually stimulating at all?, r/WSB is taking advantage of dumb kids
Ah, the legend of Bill Benter, quite the tale for anyone interested in the intersection of gambling and quantitative analysis! While the WSO threads don't specifically mention firms that are exclusively focused on algo trading for sports betting, they do touch on the concept of using algorithms in sports betting markets.
Based on the most helpful WSO content, here's how algo trading in sports betting generally works:
As for who these firms or individuals might be, they are often quite secretive due to the competitive nature of the industry. However, it's known that there are indeed professional gamblers and proprietary trading firms that apply quantitative models to sports betting.
The WSO thread titled "From poker to prop-trading" discusses a similar concept where an individual talks about arbitraging low-volume, inefficient sports-betting markets. They mention using a program to auto-bet on lines from smaller books that deviate in their favor, which is a form of algorithmic betting.
If you're looking to dive deeper into this niche, you might want to explore quantitative trading forums, betting strategy books, or even reach out to professionals in the field through networking. The WSO Networking Guide could be a great resource to start making connections in this unique space. Remember, though, that sports betting is highly regulated and the legality varies by jurisdiction, so always ensure compliance with local laws.
Sources: From poker to prop-trading, Anyone here in ‘Electronic Trading’?, Arctos Sports Partners / Sports Private Equity, Does anyone else feel that trading is stupid and not intellectually stimulating at all?, r/WSB is taking advantage of dumb kids
I believe it's far too illiquid for this to happen. No "exchanges" or atleast not any big ones. The traditional vegas mafia limit any sports bettor making any sort of real money. I do know some former quants bringing in 3-400k a year doing +ev betting, but they have also been limited by the books like fuck.
Firms already do it. SIG for example has a decently sized team, but Jump, DL, and a few others have small amounts of people doing it. There are actually a lot of exchanges with decent liquidity that these firms do market making on, it's possible they also do expected value/arbitrage betting as well.
I stand corrected. Interesting to see SIG is the big player, as one of their former quants founded a startup (oddsjam) trying to bring these advantage strats(ev and arb) to common folk. Imagine this space will grow fast as betting is inevitably federally legalized
There are a few niche players in this space. Starlizard and the story of Tony Bloom is pretty interesting and worth a read (think there's a Business Insider article on it, else it's pretty low-key)
SIG does this actually
yes, one can find more info here: https://sig.com/sports-analytics/
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