A sportsbook is a gambling establishment that accepts wagers on various sports events. Its business model is simple – it pays out winning bettors from the losing wagers of those who chose the opposing team. This approach gives the sportsbook a profit, even when some games are decided by a tie. While this business model isn’t new, the legalization of sports betting has changed the industry and brought a variety of changes to how sportsbooks operate.
In addition to allowing bettors to place wagers on individual teams and matchups, sportsbooks also offer spread bets. These bets are based on the expected margin of victory. A bettor can win money on a spread bet by “laying” a certain number of points, goals, or runs. This is done to reduce the sportsbook’s liability.
Understanding how sportsbooks make their money can help bettors become savvier about placing bets. This knowledge can also help bettors recognize potentially mispriced lines. In addition to the basic odds offered on individual sports, most sportsbooks will offer a variety of prop bets and futures bets on popular events.
Sportsbooks move their betting lines for a variety of reasons. Sometimes a line will open that induces lopsided action on one side, which can be an indication that the line is not sharp. In other cases, the lines may be moved in response to injuries or other information that could affect the odds of a particular outcome.