How Big Data Is Changing the World of Sports Betting
How often do you make betting decisions based on your gut feeling? Imagine if you had the power to predict game outcomes with data-backed precision. This is where big data comes in—it’s had a transformative impact on various industries worldwide, including sports betting! Big data uses player statistics, historical data, external factors, and head-to-head matchups to inform your sports bets logically, taking history and hidden patterns into account.
This article explores how big data revolutionizes sports betting, enhancing accuracy, strategy, and profitability. Big data is a significant game changer, especially regarding your personal betting strategy. This information can put you on the winning side of the curve more often. Keep reading to learn about applying big data to your personal betting routine!
Understanding Big Data
What is big data, anyway? We’ll define big data and the importance of its use in sports betting and other industries such as finance, healthcare, and marketing. To understand how big data works for sports betting, we’ll have to highlight and discuss the five big Vs that represent how the data is used to great effect in multiple industries, including online sportsbooks!
Definition of Big Data
Big data in sports betting is when bookmakers collect and analyze vast amounts of advanced statistics and analytics on teams and individual players to improve the accuracy of the odds they offer. Leveraging the power of big data helps bookmakers enhance their predictions’ accuracy and better manage possible risks down the road.
Five key characteristics represent big data:
- Volume: This is the amount of data available which serves as the basis of big data. Volume represents the initial size and amount of data collected for the bookmakers to inform their odds and predictions on final outcomes. The volume of big data will fluctuate based on the market or type of bet being offered.
- Velocity: This is the speed at which data is developed and how quickly it can move. In sports betting, bookmakers need quick access to new data and analytics to inform their odds and, eventually, line movement. The data and information must flow quickly so the bookmakers can put out timely odds for their customers, especially in live betting situations!
- Variety: This refers to the different types of big data available to bookmakers that could be sourced from multiple places both inside and outside the sportsbook. The value of the collected data can vary depending on whether it is unstructured, semi-structured, or structured. The more structured data a sportsbook can attain, the better because the information can be received and flow through the sportsbook much more easily.
- Veracity: This is the quality and accuracy of the data presented. When a sportsbook receives new data on a player or team, the data could be thorough and complete, but there’s also a chance of holes or missing spots, which can lead to confusion. Bookmakers strive to get their hands on as much high-veracity data as possible.
- Value: This is how valuable the data can be for the bookmakers. Higher-value data helps develop accurate odds and helps bookmakers land on the correct side of their predictions more often. Bookmakers’ insights get better when they use chock full of value data.
Importance in Modern Industries
Aside from online sports betting, big data is used in the finance, healthcare, and marketing sectors. In finance, these insights can improve decision-making with valuable insights into market trends and customer behaviors. In healthcare, big data is harnessed to keep track of patients’ records and improve diagnoses for telemedicine or disease prevention. Big data in marketing involves analyzing business trends and behavior patterns so business owners and leaders can make smarter marketing decisions.
Sports betting apps and bookies would be insane not to use big data in their business. Not only can it help improve the quality of their odds and insult themselves against risk by getting good recommendations on where to shift the line, but sports bettors themselves can also use big data to enhance the accuracy of their betting selections and pinpoint value or upset opportunities.
The Role of Big Data in Sports
In modern-day sports betting online, big data plays a significant part in helping bookmakers develop accurate odds, influence line movement, and effectively manage risks associated with unbalanced bets. Data collection processes play a large role in bookmakers’ average day, as do the technologies and tools used to harvest this data, make sense of it, and use it effectively to influence the information presented to bettors.
Data Collection in Sports
Bookmakers collect several types of data to inform their sports betting odds and influence where the line moves. The data collection we’ll discuss below both informs the initial odds the bookmakers post and the changes in the numbers that inevitably occur throughout the day or the week when exterior factors begin to kick in and influence the final outcome.
Player Statistics
One key data piece bookmakers look at is statistics on individual players’ past performances, how they match up against other key competitors, and how they perform in particular situations. However, player statistics go a step further and provide head-to-head matchups between these players and competitors on other teams to gauge the likelihood of who would win. These statistics serve as a personal history that helps to inform future bets.
For instance, if you were consulting player statistics on an NFL player, you would look at information such as fumbles, tackles, interceptions, field goals, passing, or rushing. You might also find data on how well each player performs under pressure or how well they play in certain weather conditions. You can even consult past performances playing away from home and get a sense of which player does better at away games.
Game Outcomes
Big data helps bookmakers collect information on game outcomes, showing which teams perform best. Going back as far as you can in recent history with this data, you can get a good idea of how strong or weak the current iteration of the team is and how they might perform in their next few games. Looking over the last few games, you learn quickly if the team performs strong or loses steam.
Looking over game outcomes can help you learn whether the teams playing in an upcoming game are stronger defensively or offensively. If both teams have a strong defense, you might see a low-scoring game the next time they face off.
Weather Conditions
Weather is an external factor that can influence line movement and quickly change a bet’s final outcome. Big data helps bookmakers determine how teams or players will perform in certain conditions and thus make the correct decision on where to move the line.
Some teams or players perform better in bad conditions like snow, rain, or extreme heat. Just think about teams in the country’s northern half—they are better suited for playing in the cold or precipitation. Teams from the sun belt areas perform better when it’s hot. Bookmakers will consult big data when the weather suddenly changes to see what the new likelihoods are of teams covering the spreads, going on to win or lose, or scoring a certain number of points.
Roster Changes
Players and coaches can quit or get traded in the sports world, though it depends on the rules of the sports markets. There are instances where players might be out on an injury or suspended from the next game for violating laws. Big data considers these roster changes, and this information can help bookies make appropriate changes with the odds and find the ideal line positioning.
Technology and Tools
Bettors and bookies can use particular big data technologies and tools to collect and analyze sports data including the following:
- Wearable Sensors – You’ll find coaches with wearable sensors embedded in their clothing or sports equipment to analyze large volumes of data and monitor their players’ performance and other metrics in real-time.
- Analytics Software – Statistical analysis software is available online for bookmakers and bettors to make big decisions, whether developing competitive odds or placing intelligent bets.
Big Data Applications in Sports Betting
How do bookmakers apply big data in the online sports betting business? Let’s explore predictive analytics, real-time betting, and market analysis to answer that question. These techniques have served the areas of business, finance, marketing, and health care well–the story is no different for online sports betting. Odds and predictions are improving when big data is applied to the mix.
Predictive Analytics
Predictive modeling creates, validates, and processes a model using known results, which can be used to predict future sports betting outcomes. It helps sportsbooks perform more efficiently and maximize their profits by managing risk more effectively.
Online sportsbooks develop predictions and odds to sell to online bettors, so predictive analytics play a crucial role in improving the accuracy of their offerings. The books can pull information on teams’ and players’ past performance and consult historical data points to present the most accurate likelihood of how either side of a bet will play out!
Real-Time Betting
Sports betting apps consult high-veracity big data to inform the live betting experience. In-play betting can be incredibly fast-paced. The lines and odds can change quickly as the action on the field, court, or rink evolves. Bookmakers need to get new odds for betting opportunities out as soon as possible so bettors can capitalize on new single bets or prop bets. The bookmakers at the biggest sports betting sites use real-time data on in-play betting strategies and decision-making to ensure the information and data can be gathered and used as quickly as possible.
Market Analysis
Most people who bet on sports know how it works, but we’ll fill you in quickly on how odds are established and how the line moves so you can better understand how big data is used to analyze betting market trends and identify value bets.
Bookmakers use big data to create original lines, including bets on a favorite and an underdog. The betting public typically flock to the favorite with their wagers. The books will then try to balance the betting action evenly on either side of the bet by offering a discount on the underdog odds to get more people to put their money on the other side.
Let’s talk about the bettors now instead of the bookmakers. Bettors can consult big data such as odds comparison software, online calculators, head-to-head matchups, or historical data to pinpoint value bets. Big data tools will generate statistical analysis and data on all teams and players involved in the bet and search for areas in the bookmakers’ numbers where odds have been misvalued. Bettors will also be informed of the best time to place their bets. They might be told to wait longer to place their bet because the book might be on the verge of offering a significant discount to balance the action.
Case Studies
Let’s look at how big data has been used in real life to lead bettors to successful results. You can confidently apply big data to your betting routine once you see how this vital information can be worked into the mix!
Sportsbooks and Big Data
Online sportsbooks leverage big data to set odds and manage risk. Big data gives the books a great competitive advantage because they can analyze a wide range of information, such as player statistics, team performances, betting odds, weather conditions, and injury records, to create appealing odds for bettors and ensure that there’s even action on either side of a bet.
Big data that focuses on recent history provides key insights into individual player performance and a team’s current state (gaining momentum or losing steam). Historical and real-time data that goes back even further helps the books identify possible hidden patterns to enhance future predictions.
Success Stories
There are hundreds of thousands of instances where big data has been successfully leveraged to help people win significant winnings on their sports bets and even help teams perform better against their competitors. However, we’d like to draw your attention to two key occurrences that highlight how game-changing big data is in predicting sports outcomes.
Success Story #1
During their 2017-2018 season, the Houston Rockets used a model of predictive analytics to shape their defense strategy. Based on the statistics and data they received, the team focused on and wholly embraced a switch-heavy defense with the intent to stop high-value shots from their competitors right in their tracks. The predictive analytics were correct, and the Rockets went on to compete in the NBA Western Conference Final thanks to their calculated strategy of using data-driven tactics against their opponents.
Success Story #2
Let’s look at the Golden State Warriors’ 2014-2015 season. The Warriors and their coach, Steve Kerr, consulted a statistical analysis model and embraced a three-point shooting strategy. Because they employed this high-expected-value strategy of making mostly three-pointers, the Warriors were propelled to the NBA championship, where they won and finished their season with a record of 67-15!
These are success stories where sports teams leverage statistical analysis and big data to their advantage. The same principles and techniques are used by bookmakers to improve their odds and the accuracy of their predictions. Online sports bettors can also use these tools to find the best value on odds and choose bets where there could be a possible upset.
The Benefits of Big Data in Sports Betting
Big data has been a significant game changer in the way that bookmakers develop odds for the books and move the line, how sports teams have developed new strategies for overcoming their opponents, and how online sports bettors can make the most well-informed bets possible that lead to more correct predictions and increased winnings. We’ll highlight the main benefits of using big data in your sports betting sessions: increasing your accuracy rate, developing your overall betting strategy, and increasing your profitability!
Increased Accuracy
Think about a close friend you know so well that you feel you know them inside and out. You’re familiar with their strengths and weaknesses, what will make them happy or sad. You know what makes them laugh and things that get under their skin. You can predict to a T how they will react in certain situations. Now think about someone who doesn’t know as much about your friend as you do. This person is far less likely to know about your friend’s motivations and what makes them tick.
You’re at a significant advantage when predicting your friend’s movements compared to the naivete of a casual observer. This is why data-driven insights are so important in sports betting—the more you know about the sports market, team, or player you’re betting on, the more successful you’ll be in your predictions.
Consult data and statistical analysis to improve the accuracy of bets. Learn the players’ and teams’ primary strengths and weaknesses. See what weather conditions they perform best in or who the key players are who could make or break a team if an injury or suspension were to occur.
The accuracy of your predictions will increase when you become as familiar as possible with the team you are betting on. From a performance perspective, knowing how players tick and the patterns teams follow can help you make the best predictions possible.
Enhanced Strategy Development
Big data can help you develop a solid strategy and approach for your sports betting selections. Having the information and statistics on hand can help you identify who the actual winner of the bet is likely to be because the bookmakers have a track record of being wrong from time to time. Once you know if the favorite or the underdog is expected to win, you will see when the best time is to spring. Bet on the favorite early for a reasonable price, or bet on the dog late to lock in some savings.
Big data helps find upset possibilities, despite the bookmakers using the same technology to inform the odds to begin with. The key to upsets is finding hidden edges in the numbers using big data to analyze both sides involved in a bet. There’s a good chance some misvaluing has occurred due to external factors or the book’s moving lines to balance out the action on either side.
The more you involve big data and statistical analytics in your betting strategy, the more you’ll begin developing your own unique style and approach. You’ll want to keep consistent—it should lead to better-informed bets, finding value with the odds you lock in, and eventually, more money sitting in your account.
Profitability
Bringing big data into your betting strategy has the potential for you to increase profitability through informed betting decisions. Working off a logical basis for your betting decisions typically increases the overall accuracy of your predictions, and your selections will be increasingly marked as wins after each game, match, or event you’re betting on.
Big data isn’t a fool-proof way to ensure you win every bet you place, but it’s a way of getting yourself to the winning side of the curve more often than not.
This is the most important reason to study your favorite players and teams. Using big data not only leads to better accuracy in your predictions and getting into the rhythm of a solid betting strategy, but it can also help bring extra money into your account through an increase in winnings.
Challenges and Ethical Considerations
With the application of big data into your sports betting routine and rhythm come some exciting challenges and a few ethical considerations—these might not be on your radar considering the significant upsides of using statistical analysis in picking bets. As with any good thing, it’s essential to keep some of the risks and roadblocks in mind that you might run into when you begin implementing big data into your sports betting experience.
Data Privacy
As long as we’re talking about data, one of the bigger perceived risks with online sports betting is having your personal data and private information left vulnerable to online threats. This isn’t a major challenge in many cases because most of the licensed and registered US sports betting websites and mobile apps are committed to keeping this information safeguarded with the use of an SSL-encrypted connection.
The risk mainly comes from using overseas sports betting apps. Many US residents must resort to using these platforms because many states haven’t signed registered online sports betting into law. In these cases, these websites or apps can take US customers, but they aren’t responsible for keeping their US customers’ private data safe because they aren’t held to US laws and regulations.
Data privacy won’t be an issue if you’re using a US-based sports betting app. However, suppose you’re in a state that doesn’t have regulated sports betting. In that case, you might have to use an overseas product, leaving your personal information and private data vulnerable to online threats.
Ethical Betting
If you haven’t used big data in sports betting and you start using it, you’ll see significant improvements in your results quickly. Using big data might even make you feel as if you were invincible, but that couldn’t be further from the truth. Remember, using big data in sports betting doesn’t guarantee your bets will win. It’s important to keep using responsible betting practices even if you’re seeing better results:
- Set up your betting unit and keep this amount the same between all bets, about 1-2% of your total bankroll. Refrain from getting tempted to up your betting unit when you encounter a bet that’s too good to be true.
- Don’t chase losses. If anything, quit your session and return when you’re less tempted to up your bets.
- Stick with your gambling budget. Don’t go over.
- Set time limits for each betting session. Take frequent breaks to clear your head and maintain a logical mindset.
Keeping your responsible bankroll management approach super consistent helps a lot when you combine this with a consistent use of big data to inform your betting selections.
Challenges with Implementation
With major and minor sports betting markets alike, implementing big data to make timely bet decisions or maintain bet accuracy presents issues.
Big data can be extensive depending on which markets or teams you’re betting on. You might find yourself in a scenario where you don’t have the time to sift through everything before placing a bet that needs to be submitted by a specific time. This is where having a lot of knowledge already in place about the market, season, or teams is helpful—you save time learning about these factors and can spend more time focused on outside factors like a roster switch-up, weather, etc.
If you’re betting on a niche market that doesn’t get a lot of attention, like badminton, cricket, or Formula 1 racing, you might not access the rich pool of data you would find with major markets like football, hockey, or basketball. You might have to take a more aggressive stab at nailing your bets right in niche markets where there is less information and data available.
Future Trends
Let’s highlight some future developments that will eventually advance bettors’ ability to make snap bet decisions when making their selections.
AI and Machine Learning
Many industries nowadays are embracing AI to improve their businesses. Sports betting isn’t any different—there’s a growing role of AI and machine learning in the sports betting world that’s used to improve sports data analysis. Advanced AI algorithms have the power to analyze a massive amount of data to make accurate recommendations and advanced picks. AI can consider contextual factors, historical data, and players’ personal performances to cover all the bases of analyzing odds and bet selections.
We discussed the risks of too much data to look over for significant sports markets and too little data on minor sports markets. In the future, we could see sports betting AI becoming a valuable tool for quick analysis that can improve betting accuracy.
Personalized Betting
The more you learn about the players and teams you’re betting on using big data, the more your bets will post as wins. However, you gain something else. You generally become more involved in the journey of betting on certain competitors or teams, and you begin sensing a narrative for the season, which makes the betting experience more personalized! As online sports betting improves, we see bettors getting wrapped up in the “story” of a team or a competitor.
Regulatory Changes
We could see potential regulatory changes in response to the increased use of big data in sports betting. We’ll see what the future brings—for now, there aren’t any significant issues with either sports bettors or bookmakers using the technology of big tech to inform the online betting experience.
Embracing the Data-Driven Future of Sports Betting
Big data is increasingly being integrated into the sports betting landscape. We see a future where bettors have more access to a vast array of data and statistics, eventually leading to better accuracy in betting selections. The technology is improving, and bettors won’t have to commit as much time to pour through all the data—some of the emerging algorithms and other advanced technologies help bettors and bookies by providing excellent summaries from a large pool of information.
Continue to stay informed and consider integrating data analysis into your betting strategies. We’ll certainly keep you posted on new developments! In the meantime, learn as much as possible about incorporating big data into your betting routine for better accuracy and value in your odds and to capitalize on upset opportunities.
