Information Asymmetry in the NFL Gambling Market: Inside Information Versus Informed Bettors

Shank, C. (2022). Information Asymmetry in the NFL Gambling Market: Inside Information Versus Informed Bettors. Journal of Behavioral and Experimental Finance. 36, 100758

28 Pages Posted: 21 Sep 2022 Last revised: 1 Feb 2023

Date Written: September 9, 2022

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

JEL Classification: D82, G1, G4, L83

Suggested Citation

Shank, Corey, Information Asymmetry in the NFL Gambling Market: Inside Information Versus Informed Bettors (September 9, 2022). Shank, C. (2022). Information Asymmetry in the NFL Gambling Market: Inside Information Versus Informed Bettors. Journal of Behavioral and Experimental Finance. 36, 100758, Available at SSRN: https://ssrn.com/abstract=4214675 or http://dx.doi.org/10.2139/ssrn.4214675

Corey Shank (Contact Author)

Miami University ( email )

Oxford, OH 45056
United States

HOME PAGE: http://coreyshank.com

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