Sports Betting as a New Asset Class - Current Market Organization and Options for Development

Financial Markets and Portfolio Management, No. 2, pp. 169-192, 2008

Posted: 12 Jun 2008

See all articles by Peter Gomber

Peter Gomber

Goethe University Frankfurt Faculty of Economics and Business Administration

Peter Rohr

affiliation not provided to SSRN

Uwe Schweickert

Deutsche Börse AG

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Abstract

New asset classes are originally distributed via Over the Counter channels; mostly negotiated, traded and settled on a bilateral and ad-hoc basis. Subsequently, the demand for organised market services grows alongside trading volumes, number of market participants and distribution reach. This paper focuses on sports betting as a new asset class and uses the analogies between the development of traditional and new asset classes as a framework to extend market organisation. The first section motivates sports betting as new asset class based on its economic relevance. In section two, the European market is described by product design, distribution platforms and regulatory environment. In section three we discuss the dimensions of market model, technology and regulation as prerequisites to develop organised markets. Against this background, we compare the value chain in financial and sports betting markets to identify and describe three options for development: a regulated market environment, an inter-bookmaker platform, and central counterparty clearing services.

Keywords: Sports Betting

Suggested Citation

Gomber, Peter and Rohr, Peter and Schweickert, Uwe, Sports Betting as a New Asset Class - Current Market Organization and Options for Development. Financial Markets and Portfolio Management, No. 2, pp. 169-192, 2008. Available at SSRN: https://ssrn.com/abstract=1144519

Peter Gomber

Goethe University Frankfurt Faculty of Economics and Business Administration ( email )

Grueneburgplatz 1
Frankfurt am Main, 60323
Germany

HOME PAGE: http://www.efinancelab.de/no_cache/team/?user_wiwipubs_pi2[showUid]=478

Peter Rohr

affiliation not provided to SSRN

Uwe Schweickert (Contact Author)

Deutsche Börse AG ( email )

Neue Börsenstr. 1
60485 Frankfurt/Main, 60485
Germany

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