Reverse Engineering the Sharks: Intro
Gambling and baseball go way back. Everyone, casinos and betters, look to gain an edge with the hope of free money. Today, I’m starting a series diving into the lines with the hope of finding which information, fantasy or otherwise, can be extracted from the sharks and books using the FanGraphs win rate as a baseline.
To start the study, I used the game projections available here at FanGraphs and the historic Vegas line. While the FanGraphs projections were right more times than wrong, there was a systematic error I quickly found. The home-field advantage was set to 8%. The home field teams were expected to win 54% of the time and lose 46% (math!) for the 8% spread. I looked back at the league-wide home-field advantage over the past dozen season and found a smaller margin.
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