Inside the Engine Room: Organizational Structure of Trading Teams in Sportsbooks

Sportsbooks typically organize their trading teams in a hierarchical structure to efficiently manage odds and trading operations. The specific organization may vary depending on the size and complexity of the sportsbook, but here is a general outline of how sportsbooks commonly structure their trading teams:

Vice President of Trading:
At the top of the hierarchy is the Vice President of Trading, who oversees the entire trading function. They are accountable for setting the overall trading strategy, managing risk exposure, and ensuring efficient operations. This role often collaborates with other key stakeholders, such as senior management, data analytics teams, customer services, marketing, and commercial to make informed data driven decisions on behalf of the sportsbook.

Senior Directors of Trading:
Under the Vice President of Trading, there are Senior Directors who can typically either lead specific sports (e.g. Football v Basketball) or channels (e.g. Retail v Online). They possess in-depth knowledge and expertise in their respective areas and are responsible for managing a team of traders with revenue and hold rate targets and incentives.

Senior Traders:
Analyze market trends, adjust odds either directly or indirectly by delegation, and make real time micro level decisions to optimize profitability and effectively manage risk in keeping with policies set by VP and agreed with executive level management teams.

Traders:
Traders form the core of the trading team. They are assigned specific sports or markets for which they are responsible. Traders monitor odds movements, gather and analyze data, and make informed decisions to set and adjust the odds for their assigned events. They collaborate closely with senior traders and utilize various tools, including statistical models and real-time data feeds, to assess market dynamics and make accurate pricing decisions.

Odds Compilers
Odds compilers work closely with the traders to compile and update odds for different sports events. They analyze various factors, such as team/player performance, historical data, injuries, and other relevant information, to determine the probabilities of different outcomes. Odds compilers use this information to set initial odds, which are then adjusted by the traders based on market demand and other factors.

Risk Managers:
Risk managers play a crucial role in monitoring and managing the overall risk exposure of the sportsbook. They assess the potential impact of large wagers or unexpected outcomes and work closely with traders to mitigate risk through position management and hedging strategies. Risk managers also analyze betting patterns and monitor any suspicious or irregular activities to maintain the integrity of the sportsbook.

Trading Support Staff:
Support staff, such as data analysts, statisticians, and software developers, provide essential support to the trading team. They assist in data collection, analysis, and the development of trading tools and algorithms to enhance the efficiency and accuracy of the trading operations. Support teams often also consistent of Operations and Escalations teams or departments who step into action to resolve and mitigate incidents which can impact business continuity including actual or risk of technical or regulatory breach.

It’s important to note that the size and structure of the trading team can vary depending on the scale and complexity of the sportsbook’s operations. Some sportsbooks may have additional roles or organizational layers based on their specific requirements and market focus.