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There is no real market participant who could benefit from hedging in sports betting. Only sports betting operators themselves, and the teams (who are legally f
by initplus 4y ago
There is no real market participant who could benefit from hedging in sports betting. Only sports betting operators themselves, and the teams (who are legally forbidden from participating in betting).
But in a commodity market there are real participants whose primary business model is production, being able to hedge against future price swings provides real value to these businesses.
- bsid 4y agoWhy is this different than the massive sports-merchandising part of a teams business, where they sell more stuff depending on whether they win or lose? I imagine they'd want to bet.. err i mean hedge to provide real value to their business. (despite the snark, I'm also curious how the situation is different)
- thwayunion 4y ago> There is no real market participant who could benefit from hedging in sports betting. The entire local economy surrounding sports venues. For a small bar or restaurant near a stadium, the difference between a good season and a bad season can be huge. This is magnified to the nth degree in places like Green Bay, WI where renting out one's home for a single at home post-season game can easily net a family several month's worth of mortgage payments.
- luckylion 4y agoAnd all advertisers who have contracts with the teams, all shops selling their merchandise, and they'd all have a large interest in hedging their bets.
- initplus 4y agoSure, but this is a way that sports betting is less like gambling and more like legitimate risk management for some businesses.