A sportsbook is a gambling establishment that accepts bets on various sporting events. They offer a variety of betting options, including prop bets and futures. They also offer a number of promotions and bonuses to attract customers. They are subject to regulations in different states, and often require geo-location verification to make sure a bettor is located within an unrestricted state.

The sportsbooks profit by setting odds that aim to balance action on both sides of a bet. This ensures that the sportsbooks earn some profit, regardless of the outcome of the match. Sportsbooks can also prevent losses when their edges are small or there is no obvious correct side (by adjusting odds).

While many people think of sportsbooks as brick-and-mortar facilities, many are now available online. These sites feature a wide range of payment methods and offer security measures to protect bettors’ information. They are also regulated by state laws and must comply with the Wire Act of 1961, which prohibits interstate betting.

The sportsbooks’ odds are based on the expected value of a unit bet against the spread. They can be generated by a third-party provider, such as Kambi Group, or by in-house development. A head oddsmaker oversees the prices and draws conclusions from data sources such as power rankings, computer algorithms, and outside consultants. In addition to moving handicaps against the spread, sportsbooks also move odds in moneyline bets and over/under totals. For example, if the Patrick Mahomes passing total was at 249.5 yards and the sportsbook received a lot of action on the over, they would lower the over’s odds in order to induce more action on the under.