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offer the same what traditional bookies do) offer odds on the occurrence of some outcome of the event, the customers bet according that odds. Such betting process implies wagers placing the bet on the particular outcome and a bookmaker betting against that outcome (or on all the other possible outcomes). Bookmaker decides what odds to offer according to his subjective beliefs and to the amount of stakes received for each outcome.exchange companies represent a marketplace where wagers bet against each other, not against the company. The revenue of Betting exchanges consists of transaction fees, so the profit of such company does not depend on the outcome of the event. Customers of betting exchanges have more options than those of bookmaking companies: bettors here can bet both on some team’s win and against it. Putting it simply, bettors can take the role of the bookmaker. They suggest the odds that they find convenient and then are matched with the other bettor who accepts the offer and bets with the same odds on the opposite outcome. .4 The “Cash out” option in sports betting “Cash out” in sports betting is an option proposed to customers which allows bettors to take the money before the end of the event. Intuitively, when at some point in time during the game there is a score that a bettor bet on, and he is afraid that the final outcome may change, he can use “cash out” to take the amount of money that is proposed by a bookmaker at that particular point of time. This will give a customer some profit which will be less than the initial price, but at least he will be confident that he will earn something.other case when this option may seem useful is when during the game a bettor feels that the score he bet on is not likely to occur in the end of the event, he can “cash out” for another reason: he will not have the profit in this case, actually, he will loose money, but the loss will be smaller then the initial stake., this option helps to secure profits of the wagers and minimize losses.there is a catch to this type of betting in that the odds that were initially used to bet are usually higher than what is used to pay an individual who opts to cash out of the bet.a safe kind of bet it is often tricky and demanding hence requiring a lot of discipline and carefully planning and consideration. This is because the odds often change in response to the changes in the remaining uncertainty.tricky element is that the bookmakers also appreciate the kind of loophole they create for betters by creating such an option. As such this kind of option that is cashing out is limited to a certain number of games only. This means that when placing bets where one expects such options it is important to be careful not to make the wrong decisions and incur huge losses. Cashing out looks like an easy way to make money and truly it is although only successful when there is careful planning and strategizing on the part of the better. Emphasis on discipline is also another important dimension since such options are limited to certain games by the bookmakers because they see such games as impossible or with slimmest chance to achieve such a goal. As such set targets should be stuck to so as to avoid the open traps that have been laid for them (Gutierrez, 2012b).out options are also applicable to single bets considering the complexity were they to be used on multiply games. This means that is only possible to use cash out option on one single game rather than on a bet consisting of a series of bets in a single game. This cash out option could be convenient for tournament bets such as the world cup. In a scenario where an individual bets on a particular country say German to win the world cup. However despite the mixed performances of draws, losses and wins they manage to pull off and reach the final. However their opponents in the final looks like the team likely to beat them. What an individual does is to exercise the cash out option and not only get back the initial cash used on the bet but also with a little profit (Altman, 1985).use of cash out option is particularly good for the accumulator kind of bets. This entails placing a series of bets on the same team as highlighted above. The option of cash out comes in when the next opponent to the team the bet is on is likely to lose. That is when one exercises the option to cash out. It is therefore an option to mitigate from a complete loss by allowing the individual who put in the bet to salvage a little from what has been accumulated from the initial bet. Use of cash out option however is tricky and should often be thoroughly examined before being adopted (Birch, 1996). .5 The main determinants of the betting process

is of the main importance while analyzing a betting process mathematically is what the betting consists of. There are two “players” who will be analyzed: a bookmaker and a bettor.the fact that they have the same goal - to “win”, they also have a lot of differences in their behavior and preferences.

Utility functioncrucial factor that determines the behavior of an agent is his utility function. Bernoulli (1738) was the first who proposed an interpretation for utility of wealth in his theory of decision-making among risky prospects with monetary outcomes. The second, more recent, interpretation was proposed by von Neumann and Morgenstern (1944), and that is one which is used in this paper. The utility of wealth is treated as a measure of an agent’s intensity of preference for some wealth with reference to outcome probabilities. (Fishburn, Bell, 2000)

Agents’ preferencesthe choice under uncertainty takes place, it is common to say that people may have different attitudes toward risk, they can be: risk-averse, risk-neutral and risk-loving. Economists typically assume that an individuals are risk-averse: they have concave utility function and they make a decision among risky alternatives by maximizing