The Influence of Artificial Intelligence to the Earnings of Sports Betting Companies
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Keywords
artificial intelligence, sports betting companies, earnings
Abstract
The sports betting industry has grown significantly worldwide in recent years, driven largely by technological advancements and the proliferation of online sportsbooks (René Manassé Galekwa et al., 2024, as cited in Williams et al., 2011). The industry is projected to reach a compound annual growth rate (CAGR, 2025-2029) of 5.30% in revenue (Meredith Alda, 2025). Sports betting involves odds setting, accepting wagers, balancing the book, and calculating outcomes. Bookmakers first calculate the “true odds” based on the actual probability of event outcomes, and then add a margin, or “vig” (commission), to reduce payouts, thereby making the total implied probability of all outcomes exceed 100%. Bettors are allowed to place wagers on specific sports events to predict results based on these odds. During this process, bookmakers may adjust the odds to manage risk if betting disproportionately favors one outcome.
References
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