History
Trace the rich history of sports betting from ancient civilizations to the modern regulated industry we know today.
Showing 1-24 of 140 topics
The Group of Copenhagen
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The Invention of the Point Spread
The **Point Spread** was invented in the 1940s, primarily credited to Chicago mathematician and bookmaker **Charles K. McNeil**. Before this innovation, sports betting relied on fixed-odds moneylines, which stifled liquidity on lopsided matchups. McNeil's system replaced adjusting the *payout* with ...
The 'Official Data' Mandate and Antitrust Concerns
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Regulatory Arbitrage: The Curacao Master License System
The **Curacao Master License System** (est. 1996) is the regulatory framework that enabled the proliferation of the global offshore betting industry. Rather than the government licensing operators directly, it issued four private **Master Licenses**, which in turn sold thousands of **sub-licenses** ...
The Payment Processing Stack: High-Risk Merchant Codes (MCC 7995)
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The Regulatory Status of Decentralized Prediction Markets
Decentralized Prediction Markets (DPMs) like **Polymarket** and **Augur** face a hostile regulatory environment, primarily driven by the **US Commodity Futures Trading Commission (CFTC)**. Unlike traditional sports betting, DPMs are classified as trading **unregistered event contracts** (swaps/deriv...
The Mechanics of the Asian Handicap
The **Asian Handicap (AH)** is a binary betting system originating from the Indonesian *Hang Cheng* market that eliminates the "draw" outcome by applying a virtual goal deficit or surplus. Introduced to Western markets in 1998, it is characterized by **Quarter-Ball Lines** (e.g., -0.25, -0.75), whic...
Regulatory Friction: The US Resistance to Asian Handicaps
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The Tony Bloom & Starlizard Syndicate Model
The **Tony Bloom & Starlizard Syndicate** represents the corporatization of sports betting, functioning as a hedge fund rather than a gambling ring. Based in London, the consultancy employs mathematicians and scientists to generate proprietary **"True Prices"** for sporting events, identifying value...
Soft vs. Sharp Bookmaker Models
The sports betting industry is divided into two distinct business models: **Sharp** and **Soft**. * **Sharp Bookmakers (Market Makers):** Exemplified by operators like **Pinnacle**, these books operate on low margins (2-3%) and high volume. They welcome professional bettors, using their wagers as...
The Billy Walters & Computer Group Era
The **Billy Walters & Computer Group Era (1980s–1990s)** represents the industrialization of sports betting, marking the shift from subjective "wise guy" gambling to quantitative investment. **The Computer Group**, led by mathematician **Michael Kent**, was the first to successfully deploy mainframe...
The Kelly Criterion in Sports Betting
The **Kelly Criterion** (1956) is a mathematical formula originally derived from information theory by **John L. Kelly Jr.** at Bell Labs. It determines the optimal bet size to maximize the long-term geometric growth rate of a bankroll. **Key Historical Developments:** * **Theoretical Foundation...
The Rise and Fall of POGOs
The **Rise and Fall of POGOs** (Philippine Offshore Gaming Operators) traces the Philippines' attempt to institutionalize the Asian **Grey Market** betting industry between 2016 and 2024. Initially sanctioned by the Duterte administration to capture tax revenue from the massive Chinese betting marke...
Tether (USDT) in Sports Betting Settlement
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The Golden Triangle Displacement
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The Evolution of Parimutuel Betting (The Tote)
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The Economics of the Reserve Clause (1879–1975)
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The Evolution of Virtual Sports Betting
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Syndicate Betting Infrastructure
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The Mathematics of Correlation in Sports Derivatives
The prohibition of **"Related Contingencies"** (bets where one outcome affects another) was a foundational risk management rule in sports betting until the mid-2010s. The industry's pivot to **Same Game Parlays (SGPs)** was enabled by the adoption of financial engineering techniques, specifically **...
Syndicate Counter-Strategies to SGPs
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The Role of Official Data Monopolies
The **Official Data Monopoly** model represents the shift from sportsbooks collecting their own match data to a system where leagues (NFL, EPL, NBA) sell exclusive, high-speed data rights to distributors (Genius Sports, Sportradar). **Key Developments:** * **The Pivot from Integrity Fees:** Afte...
The Psychology of the Micro-Bettor
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Organized Crime and the National Wire Service
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