Skidmore College Creative Matter Economics Student Theses and Capstone Projects Economics 2017 NFL Betting: Is the Market Efficient? Mathew Marino Skidmore College Follow this and additional works at: https://creativematter.skidmore.edu/econ_studt_schol Part of the Other Economics Commons Recommended Citation Marino, Mathew, "NFL Betting: Is the Market Efficient?" (2017). Economics Student Theses and Capstone Projects. 27. https://creativematter.skidmore.edu/econ_studt_schol/27 This Thesis is brought to you for free and open access by the Economics at Creative Matter. It has been accepted for inclusion in Economics Student Theses and Capstone Projects by an authorized administrator of Creative Matter. For more information, please contact
[email protected]. NFL Betting: Is the Market Efficient? By Mathew Marino A Thesis Submitted to Department of Economics Skidmore College In Partial Fulfillment of the Requirement for the B.A Degree Thesis Advisor: Qi Ge May 2, 2017 1 Abstract The Purpose of this research paper is to analyze the NFL point spread and Over/Under betting market and determine if it follows the efficient market hypothesis. This research paper uses data from armchairanalysis.com for the 2000 NFL season through the 2015 NFL season including playoffs. I use OLS and probit regressions in order to determine NFL betting market efficiency for the point spread betting market and the Over/Under betting market. The results indicate, that as a whole, the NFL betting market appears to be efficient. However, there may be behavioral tendencies that can be taken advantage of in order to make consistent betting profits. 2 I. Introduction According to Statista.com (2015), the sports gambling market has been estimated to be worth between $700 billion and $1 trillion, but the exact size is difficult to measure because it is not legal everywhere.