Information asymmetry in the NFL gambling market: Inside information versus informed bettors

Corey A. Shank

Journal of Behavioral and Experimental Finance, 2022, vol. 36, issue C

Abstract: I employ a unique NFL gambling dataset to disentangle information asymmetry between bettors and sportsbooks. In contrast to expectations, I find no evidence that sportsbooks hold more information than the bettors. In fact, the results show that in instances where sportsbooks behave as if they are informed, the market is inefficient and gamblers are earning a profit. One explanation for these results is that gamblers are more informed than the sportsbooks.

Keywords: Financial markets; Gambling; Information asymmetry; Market efficiency; Sports betting (search for similar items in EconPapers)
JEL-codes: D82 G1 G4 L83 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:36:y:2022:i:c:s2214635022000806

DOI: 10.1016/j.jbef.2022.100758

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