Sports Betting Guide and Terms - Exposure 

Definition

The term exposure, in the sports gambling industry, refers to the amount of money a sportsbook stands to lose on a game.

Reality

Although possible, a sportsbook will rarely go bankrupt. Some factors that ensure a sportsbooks viability include, but are not limited to, the odds, the vigorish, and the general public thirst for action. Oddsmakers make a living for the sportsbooks. They are the ones who set the lines and manufacture the various proposition bets that are offered by the casino. Often, these lines and propositions are so enticing to the public that action becomes so one sided. In these lopsided games, the public usually loses.

The Odds / Monday Night Football

For example, Monday Night Football continues to be one of the sportsbooks’ greatest moneymakers. Since it is the last game before another week, and often the only game on the board, most gamblers look at this game as their last chance to win back the money they have lost, or simply to double up their winnings. Often is the case, though, is that one side becomes the ‘betting darling’. Such a side often always loses. One local bookmaker that the author personally knows has stated that Monday Night is his biggest night of the whole week. Almost all of the people on his list play this game, and for the most part, all of them lose.

Vigorish

Another reason why a sportsbook will not go bankrupt is because of the vigorish. Even if a game is split down the middle, meaning the public is not on any particular side, the sportsbook still wins money due to the commission of the losing bets. A sportsbook will really only lose money (being exposed), if a side (>51% of the bets made) wins. In other words, if more people bet on team A than team B and team A happens to cover, then the sportsbook will lose on such a game. This situation does indeed happen, but the games that the sportsbooks win are at a higher percentage than the games that the sportsbooks lose.

Public Thirst

Once a gambler wins his first sports bet, he is hooked for life. Others are stronger than some in their resistance, but for the most part, once a gambler, always a gambler. People will always want to bet—and it is the sportsbooks who will book their bets with open arms. Thus, the cycle of betting continues until either side becomes bankrupt (and often, it is the gambler who becomes economically depleted).

Summary

In closing, the term exposure refers to a sportsbooks’ potential losses on a particular game.