Economics of gambling on sports: A multistage stochastic programming approach to American Jai Alai gambling strategies

Qipeng P. Zheng, Yingyan Lou, Panos M. Pardalos

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Scopus citations

Abstract

With the increased gambling tolerance, the economic stake of gambling on sports is growing bigger than ever before. One common type is the para mutual gambling, where the gamblers bet on the results of games, such as Jai Alai, dog racing, horse racing, etc. Uncertainties lie both in the game itself and in the bets made by all gamblers. This study attempts to develop the optimum betting strategies for Jai Alai games based on the rules, the historical results and the random returns of each game. Two main concerns of this study are: modeling the randomness in both the game and the gambler sides, and formulating multistage stochastic mixed-integer models for the strategy-making problem to maximize the return and control the risk as well.

Original languageEnglish (US)
Title of host publicationOptimal Strategies in Sports Economics and Management
PublisherSpringer Berlin Heidelberg
Pages199-215
Number of pages17
ISBN (Print)9783642132049
DOIs
StatePublished - Dec 1 2010
Externally publishedYes

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

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    Zheng, Q. P., Lou, Y., & Pardalos, P. M. (2010). Economics of gambling on sports: A multistage stochastic programming approach to American Jai Alai gambling strategies. In Optimal Strategies in Sports Economics and Management (pp. 199-215). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-13205-6_11