A sportsbook is a gambling establishment that takes wagers on a variety of sporting events. Most of them operate online, but some maintain physical shopfronts. They take bets on major sports, as well as eSports and pivotal world events. Some even offer what’s known in the industry as “novelty bets,” which range from the commonplace (like royal baby names) to the outlandish (when and where will alien invasion occur).
While most sportsbooks aim to balance betting action on both sides of a game, they aren’t immune to swings in bettor sentiment. Consequently, they must make sure that they have sufficient liquidity to absorb losses and still make a profit over the long term. They can do this by adjusting odds, accepting offsetting bets, or by employing risk-management tools like vigorish.
Odds for a game are set by a head oddsmaker, who uses data from sources like power rankings and outside consultants to determine prices. The odds are then displayed on the betting board. Some sportsbooks use American odds, while others offer decimal, Euro, or Australian odds. The latter are easier to read, because they include the amount that a bet will pay out for every $1 wagered.
In addition to traditional bets, many sportsbooks offer a wide selection of prop bets and futures bets. These bets offer more in-depth analysis than standard point spreads and moneylines. They also give bettors a chance to predict the winner of a year-end award before the season starts.