Balancing the book: Is it necessary and sufficient?

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Published: Dec 6, 2017
DOI: https://doi.org/10.5750/jgbe.v11i1.1280
Keywords:
betting solvency odds balancing the book ruin

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Dudley Stark
Queen Mary, University of London
Dominic Cortis
University of Malta
http://orcid.org/0000-0002-6376-9824

Abstract

The solvency of bookmakers has only recently been placed in the spotlight even if it is a multibillion dollar sector. It is industry knowledge that bookmakers attempt to 'balance the book' by adjusting odds in relation to wagers made. This paper proves that the only way that profits are known with certainty is if and only if wagers are in proportion to probabilities implied by odds.

Article Details

Issue
Vol. 11 No. 1 (2017)
Section
Articles

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