The determinants of betting volume for sports in North America: Evidence of sports betting as consumption in the NBA and NHL

Rodney J. Paul, Andrew P. Weinbach

Research output: Contribution to journalArticle

25 Scopus citations

Abstract

The National Basketball Association (NBA) and National Hockey League (NHL) are studied to ascertain the determinants of betting volume on an individual game-to- game basis. Actual betting volume was obtained and aggregated across three on-line sportsbooks for the 2008-2009 season. Independent variables such as the quality of teams, television coverage by network, day of the week, time of day, month of the season, etc. are included in a regression model to determine the factors that influence betting volume. The results reveal betting behavior is much like fan behavior as key fan-attributes, such as the quality of teams and the availability of television coverage, are shown to have a positive and significant effect on betting volume. The results imply that consumption plays a major role in the decision to gamble on sports. Pure investment-based gambling appears to be the exception, rather than the norm. The implication of this result as it relates to models of sportsbook behavior is explored.

Original languageEnglish (US)
Pages (from-to)128-140
Number of pages13
JournalInternational Journal of Sport Finance
Volume5
Issue number2
StatePublished - May 1 2010
Externally publishedYes

Keywords

  • Consumption
  • Efficient markets
  • Sports betting
  • Television

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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