Sports betting means placing a wager on the outcome or occurrence of something related to a sporting event. A person puts money or another accepted stake on a prediction, such as which team will win, how many points will be scored, or whether a particular player will reach a certain statistic.
If the prediction wins, the bettor generally receives a payout based on the odds. If it loses, the bettor typically loses the amount wagered.
Sports betting is offered through licensed sportsbooks in jurisdictions where it is legal, although the rules and available betting markets vary by state and country.
How does sports betting work?
At its simplest, sports betting involves three things:
- A sporting event
- A prediction
- A wager
For example, suppose the Los Angeles Lakers are playing the Boston Celtics. A sportsbook might offer odds on which team will win.
If you believe the Lakers will win, you can place a wager on the Lakers. The sportsbook’s listed odds determine how much you could receive if the bet wins.
Sportsbooks set odds based on their assessment of the event and the betting market. They also build in a margin, often called the vig, vigorish, or hold, which helps the sportsbook make money over time.
What can you bet on in sports?
Sportsbooks can offer many different types of bets. The exact options depend on the sport, sportsbook, and local regulations.
Moneyline bets
A moneyline bet is a wager on which team or competitor will win.
For example:
- Team A: -150
- Team B: +130
The negative number generally indicates the favored team, while the positive number represents the underdog.
Point spread bets
A point spread attempts to make a matchup more competitive from a betting perspective.
If a football team is listed at -7, it generally needs to win by more than seven points for a spread wager on that team to win.
A bettor choosing the opposing team might receive the points.
Over/under bets
An over/under, also called a total, is a wager on the combined score of an event.
For example, a sportsbook might set an NBA game’s total at 225.5 points.
A bettor can wager on whether the final combined score will be over or under that number.
Prop bets
A proposition bet, commonly called a prop bet, focuses on a specific event or statistic rather than simply the winner.
Examples can include:
- A quarterback’s passing yards
- A basketball player’s points
- A baseball player’s strikeouts
- A football player’s receptions
The availability of particular prop bets depends on the sportsbook and applicable regulations.
Parlays
A parlay combines multiple selections into one wager.
Every selection generally must win for the entire parlay to win.
Because multiple outcomes must be correct, parlays can offer larger potential payouts than individual bets. However, they are also harder to win because one losing selection can cause the entire parlay to lose.
What do sports betting odds mean?
Odds tell you how much you could win relative to your wager.
In the United States, American odds are commonly displayed with a plus or minus sign.
A +200 price means a $100 winning wager would generally produce $200 in profit, plus the original $100 stake.
A -150 price means a bettor would generally need to risk $150 to make $100 in profit.
The actual payout can vary depending on the amount wagered and the sportsbook’s rules.
Simple example
Suppose a team has odds of +200.
If you wager $20 and the bet wins, the potential profit would be $40, plus your original $20 stake, for a total return of $60.
This example assumes the wager is settled at +200 and there are no special promotional conditions.
Is sports betting the same as gambling?
Yes. Sports betting is a form of gambling because a person risks something of value on an uncertain outcome with the possibility of winning something of value.
The key difference between sports betting and simply watching a game is the financial risk.
A fan can predict that a team will win without placing money on the prediction. Once money is wagered on that prediction, it becomes a bet.
Is sports betting legal in the United States?
Sports betting is legal in many parts of the United States, but it is not governed by one nationwide state law.
After the U.S. Supreme Court’s 2018 decision in Murphy v. NCAA, states gained greater freedom to establish their own sports-wagering laws.
As a result, sports betting rules differ significantly from one state to another.
Some states permit online and mobile sports betting, while others allow only retail sportsbooks or have more limited forms of wagering. Some states do not permit traditional sports betting at all.
Anyone considering a wager should check the current law and licensed operators available in their state.
What is a sportsbook?
A sportsbook is a company or betting operation that accepts sports wagers and sets or offers betting odds.
In the United States, legal sportsbooks typically operate under state regulatory systems where sports betting has been authorized.
A sportsbook may offer betting through:
- Mobile apps
- Websites
- Retail sportsbook locations
- Authorized betting kiosks
The exact options depend on local law.
Why do people bet on sports?
People bet on sports for different reasons.
Some bettors enjoy the additional excitement that a wager can add to watching a game. Others are interested in analyzing statistics, teams, players, matchups, and odds.
Sports betting can also create a sense of participation because a bettor has a financial interest in a particular outcome.
However, enjoying sports and betting on sports are not the same thing. Someone can be an enthusiastic sports fan without ever placing a wager.
Can you make money sports betting?
It is possible to win individual bets, but winning consistently over the long term is difficult.
Sportsbooks generally build a margin into their odds. This means the betting market is structured so that the operator can make money over time.
Past wins do not guarantee future wins, and a successful betting streak does not mean a bettor has developed a reliable way to predict every game.
Anyone who chooses to bet should treat it as entertainment rather than a guaranteed source of income.
What are the risks of sports betting?
The biggest risk is losing money.
Because sports betting involves uncertain outcomes, even an apparently strong prediction can lose. Problems can become more serious when someone increases wager sizes to recover previous losses.
Potential warning signs of problematic gambling include:
- Betting more money than you can afford to lose
- Chasing losses
- Hiding gambling activity
- Borrowing money to gamble
- Spending excessive time thinking about bets
- Continuing despite financial or relationship problems
Responsible gambling practices can help reduce these risks.
How can someone bet responsibly?
For adults who choose to participate where sports betting is legal, setting limits is important.
Useful practices include establishing a fixed entertainment budget, avoiding money needed for bills or necessities, keeping track of wagers, and taking breaks.
It is also important not to chase losses. Losing a bet does not create an obligation to place another wager to get the money back.
Sports betting should never be treated as a guaranteed investment or a way to solve financial problems.
Frequently Asked Questions
What does mean is sports betting?
Sports betting means wagering money or something of value on the outcome of a sporting event or a specific occurrence within that event.
Is sports betting gambling?
Yes. Sports betting is a form of gambling because it involves risking something of value on an uncertain outcome.
What is a sportsbook?
A sportsbook is a legal or regulated betting operator that offers sports wagers and betting odds where permitted.
What is a moneyline bet?
A moneyline bet is a wager on which team or competitor will win an event, without applying a point spread.
What is a parlay?
A parlay combines multiple individual selections into one wager. Generally, all selections must win for the parlay to pay out.
Can sports betting make you rich?
There is no reliable guarantee that sports betting will make someone wealthy. Sportsbooks have built-in advantages, and bettors can lose money.
Is sports betting legal everywhere in the U.S.?
No. Sports betting laws vary by state, and legal betting options can differ substantially between jurisdictions.
Conclusion
Sports betting means wagering on the outcome of a sporting event or a specific event within a game. Common types include moneyline bets, point spreads, totals, prop bets, and parlays.
The sportsbook provides odds that determine potential payouts, while the bettor accepts the risk that the prediction may be wrong. Because sports betting is gambling, it carries a real possibility of financial loss.
For anyone considering sports betting, the most important things to understand are the odds, the applicable local laws, and the financial risks. Where it is legal, betting should be treated as entertainment rather than guaranteed income.