Just recently, sports leagues have made their return for fans to bet on. But for several months, the sports world was tranquil.
Many people turned to stock trading as a new hobby to take place for sports. This has led to a debate in what’s fairer – stock trading or sports betting?
Sports reporter Darren Rovell had this very debate with Tom Sosnoff.
Sports Betting
On “Good Sport Bad Sport,” Rovell and Sosnoff discussed this topic.
Rovell mentioned that sports betting is much more black-and-white. There is a clear winner and loser when someone bets on a game.
“I think when sports gambling happens, first of all, you have more information. You barely know information about companies versus sports stars and sports teams. And I also think that when you win, you win. If you cover the spread, if you do whatever bet you made, it is declared as a win. In the market, you have this maybe, maybe not, I don’t know,” Rovell said.
People have more information on sports stars now than ever before. Many reporters get news just as it is released on injuries and other game-changing news. This allows the bettor to have a bevy of details at their disposal.
One topic that was debated was the vig. In sports betting, it costs 10% to place every bet. In the long run, this can affect one’s earnings.
“It’s not just the fact that it’s small. It is very inefficient. So the problem I have with sports gambling on a serious note is there’s at least 10% in juice or vig. If it’s a moneyline, I can’t even figure it out,” Sosnoff said.
Stock Trading
With stocks, most of the time, people don’t have that insider information. People are betting on the product’s market, rather than private information about those in the company.
Sosnoff also talked about the advantage of getting in and out of the stock market. Based on the bid-ask spread, it costs $1 to get in and $1 to get out on a $1,000 bet in the stock market.
This info is relatively cheap when compared to the 10% that it costs sports bettors. Sports fans have found themselves in the stock market much more than late, and they may be there to stay.
Quarantine has introduced several new things into people’s lives, and for some, that has been trading stocks.
In the End: Not so Clear
When things return to normal could be debated for some time and has no clear answer. Getting back to a regular groove depends on the individual’s knowledge of the market and sports.
But both of these have better odds than any casino games. There is a strategy and know-how in both, much more so than the chances people take on a casino game such as roulette.
Both can be a thrill, and both can be profitable. And as of late, there are plenty of more sports betting companies that have gone public.