Market Efficiency and Recreational Betting

Document Type

Article

Publication Date

11-1-2013

Abstract

The expanding legalization of sports betting will most assuredly swell the ranks of bettors nationwide and invariably attract some who would gamble less for financial gain than for entertainment value. While random betting can quickly end the fun for these ―recreational bettors‖, we propose a strategy that relies on the efficiency of the market for bets on college football to minimize the risk and sustain the action.

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