How do bookmakers establish odds if sports events are unpredictable, considering the multitude of factors at play that prevent precise probability estimation?
In: Mathematics
One thing that I’m not seeing below is that odds aren’t static. What bookmakers are doing is balancing the bets and payouts on both sides. If too many people are betting on one side, bookmakers can change the odds in order to entice more people to the other side. Ideally, they’ll pay out the same regardless of who wins, and they’ll make money on the vig.
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