A sportsbook is a gambling establishment that accepts bets on various sporting events. Some offer fixed-odds betting on a single event, while others allow bettors to choose their own odds. Regardless of the type of betting offered, sportsbooks use a number of techniques to maximize revenue and minimize risk. These include moving betting lines, adjusting odds in moneyline bets, and changing totals in over/under and prop bets.
While many sportsbooks are located in casinos or racetracks, some offer online betting. These sites are regulated and operate within state borders. However, because the Wire Act prohibits interstate sports betting, these sites are not accessible to all bettors. Those who live in states where sports betting is legal can use online sportsbooks like Bovada.
Traditionally, sportsbooks have been illegal in the United States. But, in 1992, the Professional and Amateur Sports Protection Act (PASPA) allowed four states to legally operate sportsbooks: Delaware, Oregon, Montana, and Nevada. These were the only sportsbooks that people could place bets on until 2018, when the Supreme Court ruled PASPA unconstitutional, opening up opportunities for states to legalize sportsbooks.
Using data from over 5000 National Football League matches, this article develops a theoretical framework by which the astute sports bettor may guide their decisions. An upper bound on the expected profit on a unit bet is derived, and this limit is shown to be achievable under realistic conditions when the sportsbook point spread or total is adjusted to reflect public biases and a statistical model of the median margin of victory.