Does anybody know how sportsbooks actually make their money? I've heard from a friend that they have their own margin (or "vig"), but what happens if a million people unexpectedly bet a colossal total amount on one Super Bowl team, and the sportsbook can't afford to pay out that much in winnings?
This is why the markets constantly shift. If a huge number of bets come in on one team, the sportsbook is exposed to a big risk. They adjust the odds dynamically to encourage more bets on the other side. So, if too much money is coming in on, say, the Chiefs -3, the book might move the line to Chiefs -3.5 or -4 to make the other side (the underdog) more attractive. If necessary, they adjust moneyline odds, too. For example, moving Chiefs from -150 to -180.
Ahh so the losers always cover the winners, and the sportsbooks genuinely just make their money from a small % on every bet?
Thats interesting, but doesnt that mean all bookmakers should have some linked network so they all can react at the same time.
It depends on the bookies but a lot of the bookies buy their data from 3rd party sources, so a lot of the time they're actually using the same data.
As CashoutKing said, their odds differ because of their liabilities (Fanduel/Draftkings might buy their data from the same place, but if on Fanduel a lot of people are betting on Chiefs, they'll have slightly worse odds for Chiefs than Draftkings has)
