Can Gamblers Profit in an Efficient Market?

Sheehan, Liam (2014) Can Gamblers Profit in an Efficient Market? Diploma thesis, Dublin, National College of Ireland.

PDF (Diploma)
Download (2MB) | Preview


Bookmakers have survived the constant attacks from gamblers for years. There doesn’t seem to be a secret formula out there to profit from, as the markets are robustly tested/researched by bookmakers and fundamentally non profitable for gamblers! This paper examines inefficiencies in four betting markets, in particular through the identification of isolated advantageous odds identified by applying the ‘Kelly Criterion’ method, as well as testing each betting market as a whole. From the hypothesis tests conducted, we find that there is statistically significant evidence in favour of generating a positive return from the betting markets; indicating that there are some inefficiencies in the markets. However, the practical significance tests conducted conflicts with these results; maybe this is due to the consistency of the betting markets with market efficiency hypothesis, the result being that the long term profits tend to disappear.

Item Type: Thesis (Diploma)
Subjects: Q Science > QA Mathematics > Electronic computers. Computer science
T Technology > T Technology (General) > Information Technology > Electronic computers. Computer science
Divisions: School of Computing > Higher Diploma in Science in Data Analytics
Date Deposited: 15 Dec 2014 13:41
Last Modified: 15 Dec 2014 13:41

Actions (login required)

View Item View Item