What Is a Sportsbook?

A sportsbook is an establishment that accepts wagers on sporting events and pays winning bettors an amount that varies according to the odds of those events occurring. It also retains stakes of bettors who don’t make the correct prediction and tries to profit from the difference in those amounts.

While the definition of a sportsbook may be straightforward, there are many different kinds of them. For example, some specialize in one type of sport or event, while others offer wagers on everything from eSports to pivotal world events. Some have a physical shopfront while others are virtual-only operations. In either case, they must meet state gambling laws to be licensed and regulated.

Besides offering betting on major sporting events, many sportsbooks offer prop bets and futures bets. Proposition bets are wagers on specific occurrences during a game that don’t necessarily impact the outcome of the event, but can increase the excitement of watching the game. Futures bets, on the other hand, are based on an overall prediction of the outcome of a multi-stage event such as a season or tournament.

Many US-based sportsbooks are legal, thanks to a Supreme Court ruling in 2018. However, they have to comply with state laws and must implement age verification and self-exclusion programs before launching. In addition, they must conduct regular audits and reporting to maintain their license. In addition to the legal requirements, they must offer a diverse menu of bets and bonuses.