The market efficiency of the soccer fixed odds internet betting market

Abstract

The strong form of market efficiency requirement states that expected returns are equal across wagering prospects, and weak form efficiency requirement states that there is an absence of profit opportunities, meaning that all historical information relevant to the assessment of the match outcome probabilities are reflected in the odds quoted. This article empirically tests the market efficiency of the European soccer fixed odds Internet-betting market, and also presents simple betting strategy that appear to be profitable.