Author: BenoIt

The formal political betting markets appear to have largely disappeared by 1944, though informal bets continued to take place right up to the current period of Internet-based markets. There are several explanations for the demise of the Wall Street markets: (1) the rise of scientific polling, (2) the passing of several of the leading election betting commissioners, (3) the active suppression of the New York illegal gambling scene, (4) the contraction, during the early 1940s, of key sources of betting dollars, and (5) the legalization of horse race betting. The press attention devoted to the Wall Street betting odds was…

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Betting markets, whether markets for bets on horse races, sports, or lotteries, offer an ideal naturalistic environment in which to explore biased decision-making. A key pragmatic advantage is the availability of extensive, rich, and detailed quantitative data relating to bettors’ decisions. Since markets are finite in nature, there is a continually expanding set of “completed” markets, that is, a time period during which betting continues up to a defined endpoint, at which time all bets are settled in an unambiguous manner.2 Furthermore, there is potential for comparative analysis across different types of event or bet, according to such recognized criteria…

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In closing, let me discuss the consequences of bettors’ varying motivations for betting markets. Perhaps the most important economic question is where the inefficiencies and biases in betting markets arise. Obviously in pari-mutuel markets that do not have a supply side, anomalies arise in the pricing decisions of bettors. But what is the relative contribution of the different bettor populations? And, of course, in bookmaker markets there is the added complexity of a sophisticated supply side: so where do biases arise here? The most obvious point to make is that many of the biases in betting markets are amenable to…

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The latest attempt by Congress to curtail sports gambling was made in October 2006, when it passed the Unlawful Internet Gambling Enforcement Act (UIGEA) as part of an otherwise unrelated anti-terrorism bill.18 UIGEA was signed into law in 2006 but did not go into effect until June 1, 2010. The statute’s preamble acknowledges: “New mechanisms for enforcing gambling laws on the Internet are necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such gambling crosses State or national borders.” UIGEA prohibits payment processing entities, such as banks and credit…

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People like to watch the delight in their additional energy. The identical is legitimate in South Korea and various bits of the world. What is substantially more stimulating is how various spectators put down their bets on different nearby and new contentions. Some of them are productive and twofold their money, so you are lucky enough on the off chance. Simultaneously, others lose the opportunity to get that money in the pot. That is the way the betting works, notwithstanding. Henceforth, it would be best if you gifted at betting, especially in case you do it online because you need…

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Despite the conceptual robustness of the law of demand (Marshall [1890] 1997, ch. 3; Samuelson and Nordhaus 1995, 24), it is evident that this concept is not necessarily sufficient to reveal the quantity demanded nor applicable enough to directly uncover the demand Freshwap behavior of casino gambling in practice (Siu 2007a and 2011). A major issue associated with economic studies is that the unit price paid by individual patrons to enjoy a casino game is unobservable. Indeed, once the odds of casino games are fixed, influences from a number of non-price factors (e.g., traits of a society in terms of…

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Whether an economic growth impact exists may be of less concern to politicians than the amount of tax revenues that casino or other gambling activities create for the government. Of course the various gambling industries often point to the taxes they pay as a measure of the tax relief provided by the industry to the state’s (or local) citizens. For example, Missouri taxpayers and politicians may assume that the $742 million in lottery sales or the $403 million in taxes paid by the casino industry represent net increases in tax revenues (or reductions to the citizens’ tax burdens). The more…

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An important consideration is that the hot hand and gambler’s fallacies appear at first to be opposite effects. While bettors may believe that long runs in the results of players or teams will continue (the hot hand), they simultaneously believe that long runs should end (the gambler’s fallacy). This begs the question: how can these two apparently opposite effects be explained? One proposed explanation for both fallacies is the representativeness heuristic (Tversky and Kahneman 1971) in which decision-makers believe that sequences should be representative of the generating process. Decision-makers apply the “law of large numbers” too readily; that is, they…

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Alistair Bruce of the University of Nottingham examines individual motivations for betting, synthesizing perspectives from economics, psychology, and sociology. His results have important implications for policy makers designing legal and regulatory regimes for betting as well as for those interested in treating the negative effects of “excessive” exposure to betting. The next chapter, by Les Coleman of the University of Melbourne, examines a variety of characteristics of betting markets. He focuses on comparing betting markets to financial markets and then assesses the motivations for gambling. In a similar vein David McDonald, Johnnie Johnson, and Ming-Chien Sung of the University of…

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Introduction While gambling is a common activity for humans, the demand for various types of games and related gaming services is not identical across different regions. Given the differences in social, political, and economic factors, such as culture, education, public administrative structure, regulatory system, income, and so on among different countries in the world, the organization and market performance of casino gaming and gambling in Asia are unique. For example, while the markets in America are largely 56 casinos dominated by gaming machines, it is well-known that Asia is a table-game market (see, e.g., Siu and Eadington 2009). In addition,…

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