What it is
A point spread is a margin of victory or defeat assigned to a team by a sportsbook to create a more balanced betting market. The favored team must win by more than the specified number of points, while the underdog can either win outright or lose by less than that number of points. Bettors wager on which team will "cover the spread," rather than simply winning or losing the game.
Point spreads are the most common form of betting in sports like football and basketball. Sportsbooks adjust the spread based on betting action, aiming to attract equal money on both sides to minimize their risk and guarantee a profit through the vig. Investors following the sports betting industry understand point spreads as a fundamental mechanic that drives betting volume and sportsbook profitability across major sports.
Why it matters
Point spreads balance betting markets, influencing bettor behavior and directly impacting the revenue generation for sportsbooks.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice