DOI: 10.1146/annurev-financial-111424-023216 ISSN: 1941-1367
Retail Betting Markets
Scott R. Baker, Justin Balthrop, Mark J. Johnson, Jason Kotter, Kevin PisciottaThis review examines the rapid expansion and convergence of retail betting markets. We analyze market design elements, discuss economic utility, and highlight shared behavioral drivers of sports betting markets, prediction markets, and retail options trading. Our review underscores how technological innovation, behavioral biases, and regulatory arbitrage have shaped recent market evolution. We highlight important considerations for policy makers facing a changing landscape and outline possibilities for further research.