Determinants of Pari-Mutuel Betting PreferenceMarshall Gramm, C. Nicholas Mc Kinney, Douglas H. Owens and Matt E. Ryan American Journal of Economics and Sociology, 2007, vol. 66, issue 3, pages 465-491 Abstract: This paper is an analysis of the demand for thoroughbred racetrack wagers, examining evidence that would support the existence of two types of bettors: the risk-averse informed bettor versus the uninformed bettor. Looking at 12 major racetracks over the fall of 2002, we undertake an empirical examination of the determinants of bettors' preferences for particular wagers on specific races. The goal is to try to determine what individual aspects of a race (conditions, surface, participants, etc.) will encourage increased wagering dollars. With the advent of simulcasting, the competition for the wagering dollar is fierce, as the bettor can choose from more than 100 races daily, each race offering numerous betting options. We find for most wagers that higher quality participants, larger and more competitive fields, and turf races increase betting volume while higher pari-mutuel takeout, poor track conditions, and other races run concurrently reduce volume. However, more competitive fields reduce betting volume in the show and trifecta pools. Optimal field size is determined to be between 10 and 12 betting interests. Overall, we find support for the existence of a significant share of risk-averse informed bettors. Copyright 2007 American Journal of Economics and Sociology, Inc.. Downloads: (external link) Related works: Ordering information: This journal article can be ordered from Access Statistics for this article American Journal of Economics and Sociology is edited by Laurence S. Moss More articles in American Journal of Economics and Sociology from Blackwell Publishing |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
Econpapers is hosted by the
Swedish Business School at Örebro University.