As for how the sports betting business works, you're not exactly the first guy to come on these boards, say he has personal experience in the business, as well as say that there's no need to lay off. While I don't question your first claim, I do question the second. And I think I can do based on the fact that the law enforcement investigators who go after these illegal sports books still talk about them laying off on a regular basis. And the fact that former mob bookies, like George Freselone, also said the same thing.

It comes down to simple math. Typically, in order to win $100, a player must risk $110. Ideally, a bookie is going to want equal bets on both sides of a game. That way, regardless of the outcome of the game, the bookie can pay $100 to the winner with the $110 coming from the loser. And the bookie, of course, keeps the $10 as his cut.

Of course, the bets usually are not going to come in equally on both sides. One team is going to be the favorite, local fans will put more action on their team, etc. Now moving the line can help control the action and keep it relatively balanced. But often not completely. And if the bets are not completely balanced, the bookie's own money is at stake if the side with more bets ultimately wins. That turns the bookie into a gambler, which he doesn't want to be. He must have some way to balance his bets or he risks being wiped out. And typically the only way to balance the bets is to lay off.

And keep in mind this is just one game where a decent sized bookmaking operation is going to be taking action on several games in several sports.