Parimutuel betting markets: racetracks and lotteries revisited

Ziemba, W. (2020). Parimutuel betting markets: racetracks and lotteries revisited. (Systemic Risk Centre Discussion Papers 103). Systemic Risk Centre, The London School of Economics and Political Science.
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This paper surveys the state of the art in research in racetrack and lottery markets. Market efficiency and the pricing of various wagers is studied along with new developments since the Thaler and Ziemba JEP review. Other sports betting markets are also discussed. The role of syndicates, betting exchange rebates, behavioral biases and fundamental information is discussed.

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