How often do the sports bets get it wrong and lose money, especially on the big results for upset wins. I'm thinking of something like a string of wins from an unknown team or a big come back like Tiger Woods recently. Is that always perfectly hedged off or sometimes a big loss from a result possibly in combination of events that should never normally happen
Believe it or not, when big favourites win it often can & will cost the Bookmaker millions, for example when The Patriots won the Superbowl this year it cost millions in liabilities for many. If there is a very large liability on one side of an outcome, it would not be uncommon for the Bookmaker to hedge on the other side via means of a betting Exchange to balance their book. This would only be if there was not enough liquidity available on the other selection within their Sportsbook. Another means of hedging would be making the odds more favourable on one side than the other in order to entice business to that particular selection