market efficiency in sports betting

Market efficiency in sports betting refers to how well the odds reflect the true probabilities of various outcomes in a sporting event. In an efficient market, all available information—such as team performance, injuries, and weather conditions—is quickly incorporated into the odds. This means it's difficult for bettors to find value or profit consistently because the odds accurately depict the likelihood of each outcome. If a market is inefficient, some bettors may identify opportunities to exploit mispriced odds, potentially leading to profitable betting strategies. Essentially, efficiency ensures that it's hard to 'beat the market' over time.