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 ...
Summary
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 adjusting the *score*, handicapping the favorite with a points deduction to create a theoretical 50/50 proposition. **Key Technical Innovations:** * **The 11/10 Vigorish:** The spread enabled the standard pricing model where bettors wager $11 to win $10. This ensures a mathematical house edge of **4.54%** on balanced action, transforming bookmaking from a gambling risk into a brokerage model. * **The Minneapolis Line:** While McNeil invented the math, **Leo Hirschfield** industrialized it through the Minneapolis Line, a wire service that distributed standardized spreads nationally, preventing arbitrage and stabilizing the national betting market. * **Liquidity Expansion:** By making every game a "toss-up" via the handicap, the spread allowed bookmakers to accept unlimited volume on mismatches, directly fueling the rise of the NFL as a betting product.
References & Further Reading
- 1. The Odds: One Season, Three Gamblers, and the Death of Their Las Vegas View Source →
- 2. Chalk: The Art and History of Betting the Football Game View Source →
- 3. Sports Betting and the Law: A History of the Point Spread View Source →
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