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Title: On developing a solvency framework for bookmakers
Authors: Cortis, Dominic
Keywords: Bookmakers (Gambling)
Gambling industry
Financial risk
Financial risk management
Finance, Personal
Issue Date: 2019-06
Publisher: Casualty Actuarial Society
Citation: Cortis, D. (2019). On developing a solvency framework for bookmakers. Variance: Advancing the Science of Risk, 12(2), 214-225.
Abstract: The betting industry has grown significantly but there have been no developments in creating a regulatory framework akin to the EU Solvency and Capital Requirement Directives in the Financial Services. This work derives a modular method to calculate the profit and variance of a portfolio of wagers placed with a bookmaker by subdividing these into bundles according to their likelihood size. This calls for improved risk manage-ment and regulatory set-ups similar to those of the financial services industry, which should include a minimum capital requirement for bookmakers to accept a particular number of bets — “A passport for taking risks.”
ISSN: 19406444
Appears in Collections:Scholarly Works - FacEMAIns

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