In this episode of Zero Latency, Brad Allen, Alun Bowden, and Andy Wright discuss the topic of structural hold in the US sports betting market. They address the issue of operators frequently missing their structural hold targets, according to a Bank of America note, and explore potential reasons, including pricing inaccuracies, the mix of bets (straights vs. parlays vs. SGPs), and the impact of sharp bettors. The conversation covers the complexities of calculating structural hold, the importance of accurate pricing models, and whether structural hold should be a public metric, considering its volatility and the influence of luck. The panel also touches on the implications of increasing reliance on parlays and SGPs and the challenges in pricing correlations within these bets.
