Sports Gambling vs. Sports Trading: Betting Methods Explained

In recent years, the sports betting industry has experienced massive growth as legal sportsbooks are available in more and more states. And while sports betting is not yet live nationwide, the demand for monetary gamification continues to increase. This has led users to discover other legal ways to gamble on sports, particularly sports trading.

While there are similarities between the two wagering methods (sports betting and sports trading), each brings unique aspects into the fold for users looking to take action on an upcoming event. This page will cover the pros, cons, and fundamental differences between trading and betting on sports. Additionally, this guide will help point new users toward whichever investment method might be more suitable for them.

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Sports Betting: Pros, Cons, Availability

Sports gambling is extremely popular and presents a multitude of ways for users to take legal betting action. Sportsbooks provide odds for users to place bets on, with the odds structured to entice action on both sides of the line. The sportsbooks make their money on ‘vig’ which is the cut that the house (in this instance, the sportsbook operator) takes for accepting the gambler’s bet on the platform. The vig will vary from sportsbook to sportsbook, but it’s always dependent on the odds provided.

Major sportsbook operators have odds on a variety of markets, including sports and leagues all across the globe. Users have the option to bet on many aspects of sports including the result of games, bets within a game, bets on individual player(s), as well as betting on future game results, and much more.

There are a variety of bet types for users to gamble using sportsbooks, including these popular options:

• Moneyline: Place a bet on either team to win a game. Favored teams will have (-) odds, and underdog teams will have (+) odds. A $150 bet on a (-150) favorite will pay out $100 in the event of a win. On the other side, a $100 bet on a (+150) underdog will pay out $150 in the event of a win.
• Point Spread: Place a bet on either team to cover the spread (the handicap set by oddsmakers). Favored teams will be giving (-) points, while underdog teams will be getting (+) points. A (-5) point favorite will need to win the game by at least six points to cover the spread. For the other side, a (+5) point underdog can lose by no more than four points to cover the spread.
• Over-Under Total: Place a bet on both teams to combine to score over or under the pre-game total set by the oddsmakers. Over-under total bets do not take the win/loss result of the game into account.
• Player Props: Place a bet on individual player(s) to record certain statistics within a game. Player prop bets are often parlayed together onto the same betting ticket, and the win/loss result of the game is irrelevant to these bets.
• Parlays: Combine multiple bets together onto the same ticket. For a parlay bet to win, the user must win each individual leg (bet) on the parlay ticket. If any of the legs loses, the entire parlay ticket is a loss.
• Futures: Place a bet on a future sports result like a championship, number of wins in a season, individual player awards, and others.

Bets that end in a tie are considered a push, and the user is refunded for their wager. If one or more of the legs of a parlay bet ends in a push, they are voided from the parlay ticket.

Sportsbook operators often provide new users with promo code offers at sign-up that unlock a sports betting bonus right out of the gate. These offers can come in the form of bonus bets, first bet offers, no deposit bonuses, profit boosts, and other profitable welcome bonuses.

Sports gambling on legal sportsbooks is available in over half the states throughout the country, and there are several sports betting platforms for eligible users in legal states. Gamblers can download mobile sportsbook apps, access sportsbook websites, as well as visit retail brick-and-mortar sportsbook locations.

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Sports Trading: Pros, Cons, Availability

Sports trading brings more of a traditional investing angle, providing an alternative method to wager on popular sporting events. When trading on sports, users are buying and selling event contracts that represent the yes or no outcomes of real-world events. Sports trading does not present as many methods of placing bets as traditional sports gambling, but does offer simple, structured, (pick a side) sports wagering, and is more available nationwide than legal sports betting.

With sports trading, users stake either side of a yes or no outcome, for example, the winner of Super Bowl LIX that featured the Philadelphia Eagles vs. the Kansas City Chiefs. The prices of the yes or no event contracts are reflective of the probability for that outcome to occur. Added together, the prices of the yes and no sides of the event always equal the platform’s set contract price, whether it be $1, $20, $100, or any other number. The event trading platform collects a small fee on each contract purchased.

Prices for each side of the outcome will shift with changes in the probability, presenting chances for users to sell their positions for profit before the event even takes place. Once the event in question has concluded, the users who bought the correct side are awarded the full value of the event contract (the price of both the yes and no outcomes). The users that bought the incorrect side do not keep anything, but they only lose the price they already paid for those event outcome contracts.

Users have the option to buy event contracts at the available market price, as well as place orders for event contracts at a set price. It’s not a guarantee that contracts at the set price will be available, in which case the trade will not be executed. However, it is guaranteed that a trade will only be executed at that set price the user has ordered. Here’s a quick breakdown of trade methods for sports event contracts:

• Quick Order: Buy sports event contract(s) at the available market prices. Trades will be executed immediately at available prices. Depending on the size of the order or the status of the market, the prices of purchased contracts could vary slightly.
• Sell Order: Sell sports event contract(s) at the available market prices. Trades will be executed immediately at available prices. Depending on the size of the sell order or the status of the market, the prices of sold contracts could vary slightly.
• Limit Order: Buy sports event contract(s) at a set price (set by the user). Trades will only be executed if there are contracts available at the limit order price. If there are no contracts available at the set price, the order will not be executed and will instead be on hold until contracts are available at the requested price.
• Limit Sell Order: Sell sports event contract(s) at a set price (set by the user). Trades will only be executed if there are buy orders available at the limit sell order price. If there are no buy orders available at the limit sell price, the trade will not be executed and will instead be on hold until buy orders are available at the set price.
• Selling Contracts Early: Users have the option to sell their positions ahead of the event outcome. If there has been a favorable shift in the likelihood of outcomes, users can potentially sell their contract outcomes for profit before the event actually occurs.

Sports trading is legal in 44 states throughout the country and there are several federally regulated platforms like Kalshi and Crypto.com for users to trade on. Users have the option to download sports trading apps, and some sports trading is available on traditional brokerage platforms.

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Comparing Sports Gambling Apps vs. Sports Trading Apps

While it’s entirely possible to place the same exact bet on both a traditional sportsbook as well as a sports trading platform, there are many differences between the two gambling methods. As such, certain investors might be better suited for betting on sports using legal sportsbooks. For others with different interests/intentions, it might turn out that sports trading is a better option.

Determining factors can range from availability to new user promo codes, minimum deposit, and so many other important aspects. Understanding these differences, let’s give some coverage to what type of user might be best suited for either sports betting or sports trading.

Best for Sports Fans: Sports Betting

For general sports fans, the better option will likely be to utilize sports betting. There are many more wagering options when using traditional sportsbooks, including the ability to bet before and during a game, parlay bets from multiple games, or the same game, and much more.

Sports betting offers a potentially quick turnaround time from deposit to cashout (assuming the user wins their bet) and sportsbooks have been heavily commercialized in recent years. As it currently stands, many major leagues and sports franchises throughout the country partner with sports betting platforms, aiding in the conversion of fans to sportsbook users.

First-time users on a new sportsbook platform also have the option to sign-up with a promo code offer to claim a betting bonus when they register for a new account.

Best for Experienced Investors: Sports Trading

Experienced investors are likely going to want to opt for sports trading, as it will be much more similar to what they are accustomed to. Much of traditional stock trading is buying and selling positions, aiming to profit as the market fluctuates. This is a completely repeatable process when it comes to trading on sports, and presents the opportunity for traders to take a profit without even having to wait for the event to take place.

The simple yes or no outcomes on a sporting event contract are likely to be much more palatable for experienced traders, as they won’t need to worry about odds, bet types, betting around the vig, or any other intricacy that comes with sportsbooks. Rather, they can simply stake their position on one side of the outcome and wait for the event to play out to see if they’re proven correct. Or, sell their position ahead of the event if the market has shifted in their favor.

Best for Minimum Deposit: Sports Betting

For minimum commitment, sportsbooks are likely the better option as they present more betting power, per dollar, to the user. Sportsbooks offer in-app promos and bonuses like bonus bet offers, profit boosts, and no-sweat bets. These bonuses increase the value of the user’s wager, and are often provided as complimentary offers for existing users on the platform. Traditional sportsbooks also offer the ability for users to place parlays and same-game parlays. These bet types include several bets from different games (or the same game) combined on one ticket for multiplied odds and a potentially larger payout.

With sports event trading, the user will need to make more of a monetary commitment to their position in order to receive a bigger profit. Think of it like traditional stock trading, the more shares you own and sell, the bigger your profit. The same concept works here with sports trading, profit per contract on a singular event will be virtually identical, so the more correct contracts you own, the bigger the payout.

Best to Call it Early: Sports Trading

Users looking to place their bets and potentially take a profit early will likely find that sports trading provides a more friendly environment. Sports trading gives users the opportunity to sell their positions if the odds shift drastically in their favor ahead of the event. If this trade is executed ahead of the event outcome, the user will then receive the profit (difference) between the price they originally paid for the contract, and the price they sold it at.

While some might argue that betting on futures lines with a sportsbook is a better option, the details would beg to differ. If a user locks in a futures bet that appears to be on-track to cash, they will likely have the option to ‘cashout’ that ticket prior to the event. This cashout would cancel the ticket while paying the user a profit, so they are protected from the bet potentially losing in the future. While this sounds like a nice concept, a cashout payment on a sportsbook is only going to be worth a fraction of what it should be, the house isn’t going to give users a legitimately good offer to cancel your bet.

Selling what are tracking to be correct positions on an event contract after the probability has shifted heavily in your favor will likely lead to greater profits than a sportsbook cashout.

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Sports Gambling vs. Sports Trading FAQ

Popular queries relating to the breakdown of sports betting and sports trading.

Is Sports Trading the Same as Sports Gambling?

Not quite, there are some similarities between sports trading and sports betting, but also fundamental differences of how these methods operate. Legal sportsbooks use odds set by oddsmakers, with users having the opportunity to wager in a variety of ways. Sports trading takes more of a traditional investing approach, where users are buying and selling contracts for yes or no outcomes of select events.

Where is Sports Betting Available?

Sports betting is legal and available in over 25 states throughout the country. The list of available sports betting states includes AZ, CO, CT, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, NH, NJ, NY, NC, OH, OR, PA, TN, VT, VA, WV, and WY.

Where is Sports Trading Available?

Sports trading is legal and available in 44 states. Platforms like Kalshi and Crypto.com are accessible for eligible users nationwide to trade sports event contracts.

What are the Best Sports Betting Apps?

DraftKings, FanDuel, bet365, BetMGM, Caesars, ESPN BET, and Fanatics are some of the top operators in the sports betting space.

What are the Best Sports Trading Apps?

Kalshi and Crypto.com are the only federally regulated sports trading platforms in the country.

What is the Minimum Age for Sports Betting?

The minimum sports betting age in most states is 21, however, there are some states where users aged 18 and older are eligible to use legal sportsbooks.

What is the Minimum Age for Sports Trading?

The minimum age to use sports trading platforms like Kalshi and Crypto.com is 18 years old.