A zero-sum game is a situation where one participant’s gain is exactly equal to another participant’s loss.

In sports betting, money is redistributed between players and the bookmaker.

How it works

• Total gains and losses balance out to zero

• The bookmaker earns profit through margin, not by predicting outcomes

• Player losses fund player wins and bookmaker revenue

Example

• Bettor A loses $100

• Bettor B wins $95

• Bookmaker keeps $5 as margin

Key characteristics

• Betting markets are not purely player vs bookmaker

• Margin ensures the bookmaker’s long-term profit

• Players compete against pricing efficiency, not each other

Important note
Because of bookmaker margin, sports betting is a negative-sum activity for players as a group.