A sportsbook is a gambling establishment that accepts bets on athletic events and pays out winning wagers. The business makes money by collecting losing bets, which cover overhead expenses, and by charging a small commission on winning wagers. A sportsbook must be licensed by a state and have adequate cash flow to pay out winning wagers.

Sportsbooks set their odds by determining the probability of an event occurring, which allows bettors to choose which side of a wager they want to make. The more likely an occurrence is to occur, the lower the risk and the higher the payout. A team or individual that is favored by the betting lines has a lower risk but also a smaller reward.

The odds for a game are posted at a sportsbook before the action begins, but bettors can find better prices by researching a number of different sportsbooks. User reviews are helpful, but be sure to look at the terms and conditions and regulations, which can vary from one sportsbook to the next.

The Nashville Predators were playing at home the day before Christmas, and it was easy to spot the DraftKings Sportsbook logo in the arena — flashing on the Jumbotron as starting lineups were announced and displayed on the yellow jackets worn by crew members who shoveled the ice shavings during timeouts. The company’s name even appeared on the carts the crew used to collect the discarded ice. This is a sign of a growing sportsbook brand.