{"id":65493,"date":"2022-12-22T17:53:22","date_gmt":"2022-12-22T22:53:22","guid":{"rendered":"http:\/\/www.bu.edu\/cas\/?p=65493"},"modified":"2023-03-17T16:21:27","modified_gmt":"2023-03-17T20:21:27","slug":"the-nba-bets-big-on-data","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/cas\/the-nba-bets-big-on-data\/","title":{"rendered":"The NBA Bets Big on Data"},"content":{"rendered":"<p><strong>By Marc Chalufour<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">As a kid in Illinois, Arup Sen eagerly awaited the arrival of the evening newspaper. His interests in sports and numbers came together in the agate type of the box scores, where he could see how the Los Angeles Lakers or the Oakland Athletics or any other dominant team of the 1980s had performed the night before. If his parents felt they had to punish him, they didn\u2019t send him to his room\u2014they took away the sports page.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sen (GRS\u201913) followed basketball and baseball in the US and, when his family moved to India, he adopted soccer, cricket, tennis, and badminton. He couldn\u2019t imagine a career in sports then\u2014but by the time he was completing his economics PhD at BU, a statistical revolution had swept through professional leagues. Analysts, data scientists, and economists were in high demand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2014, Sen landed a dream job at the National Basketball Association (NBA), analyzing referee performance. His rise through the organization since then reflects the growth in scope and sophistication of the league\u2019s analytics operation. Today, Sen is the senior director of basketball strategy and integrity. With the rapid spread of legalized sports betting, their analysis of player and referee performance in conjunction with trends in gambling markets, plays a critical role in ensuring the league\u2019s competitive integrity.<\/span><\/p>\n<p><b>Sports Betting Goes Mainstream<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019ve watched a live sporting event recently\u2014and maybe even if you haven\u2019t\u2014you\u2019ve seen sports betting ads. Online sportsbooks like DraftKings and FanDuel jockey with physical casinos for gamblers\u2019 money. Paid experts and analysts offer up their predictions and parlays of the day. This was unimaginable just a few years ago.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prior to 2018, sports betting in the US was only legal in Nevada, where $4.8 billion was bet in 2017. That same year, an estimated $150 billion was bet on sports through offshore gambling services. The US Supreme Court\u2019s 2018 decision in <\/span><a href=\"https:\/\/www.supremecourt.gov\/opinions\/17pdf\/16-476_dbfi.pdf\"><i><span style=\"font-weight: 400;\">Murphy vs. NCAA<\/span><\/i><\/a><span style=\"font-weight: 400;\">\u00a0struck down the Professional and Amateur Sports Protection Act of 1992 and opened the door for more states to legalize sports betting. More than 30 states have since legalized some form of sports betting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Widespread legal gambling has huge implications for sports leagues\u2014but so did illegal gambling. Members of the 1919 Chicago White Sox\u2014aka the Black Sox\u2014were famously accused of accepting bribes and intentionally losing the World Series; players from seven college basketball teams were caught in a scheme to shave points in 1951, meaning they attempted to prevent their team from covering the point spread; and Pete Rose, baseball\u2019s all-time hits leader, was banned from the sport because he bet on games he participated in. And those are just the most notorious of the scandals. Proponents of sports betting legalization argue that it\u2019s better to bring gambling into the open where the action can be analyzed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The NBA has been a leader in this transition. Four years before <\/span><i><span style=\"font-weight: 400;\">Murphy vs. NCAA<\/span><\/i><span style=\"font-weight: 400;\"> reached the Supreme Court, NBA commissioner <a href=\"https:\/\/www.nytimes.com\/2014\/11\/14\/opinion\/nba-commissioner-adam-silver-legalize-sports-betting.html?searchResultPosition=2\">Adam Silver called on Congress to allow states to legalize sports betting<\/a><\/span><span style=\"font-weight: 400;\">, \u201csubject to strict regulatory requirements and technological safeguards.\u201d Behind the scenes, the NBA was already developing those safeguards.<\/span><\/p>\n<p><b>Leaving the Family Business<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sen\u2019s father taught economics at the University of Illinois Urbana-Champaign and, later, at the University of Delhi. Sen assumed he\u2019d follow him into \u201cthe family business.\u201d Not until he was deep into his PhD studies did Sen notice a trend: \u201cAll of my research was in basketball,\u201d he says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">His thesis focused on the NBA labor market\u2014how players respond to contract incentives and whether they should sign with good or bad teams. He presented a portion of that work at the 2011 <a href=\"https:\/\/www.sloansportsconference.com\/\">MIT Sloan Sports Analytics Conference<\/a>,<\/span><span style=\"font-weight: 400;\">\u00a0where his analysis of how NBA players perform in the final year of a contract versus early in a long-term deal was awarded best research paper.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That conference helped him build connections in the sports world: ESPN invited Sen to write a column about <a href=\"https:\/\/www.espn.com\/blog\/truehoop\/post\/_\/id\/62267\/economists-vs-tanking-arup-sen-and-timothy-bond\">how to fix the NBA Draft<\/a><\/span><span style=\"font-weight: 400;\">; he spent a few months analyzing contract arbitration outcomes for Major League Baseball; and he began talking with the NBA about analyzing referee performance. But without the prospect of a full-time job, he accepted a position at consulting giant Deloitte. Then the NBA called him back. \u201cI told the person who had hired me at Deloitte that I hadn\u2019t been searching for anything\u2014but this could be a dream job,\u201d he says.<\/span><\/p>\n<p><b>A New Frontier of Analysis<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sen\u2019s first role at the NBA was manager of referee strategy. He would use analytics to develop ways to measure and enhance referee performance and consistency. Since then, his roles have included senior data scientist and integrity analytics lead, and the information he works with has expanded to include player performance and betting data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sports have undergone a data-driven revolution in the 21st century. Front office personnel with academic as well as athletic backgrounds have developed increasingly sophisticated ways to evaluate player performance. In basketball, traditional stats like points, rebounds, and assists are still used, but they\u2019re no longer considered the best way to measure success. Advanced metrics attempt to more accurately capture a player\u2019s performance. <a href=\"https:\/\/www.espn.com\/nba\/columns\/story?columnist=hollinger_john&amp;id=2850240\">PER<\/a> (player efficiency rating)<\/span><span style=\"font-weight: 400;\">, for example, tracks per-minute productivity\u2014and that\u2019s just the tip of the statistical iceberg.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">In 2014, the NBA began using video technology to collect a massive amount of data on every game. <a href=\"https:\/\/www.secondspectrum.com\/index.html\">Second Spectrum<\/a><\/span><span style=\"font-weight: 400;\">\u00a0cameras in NBA arenas record the movements of everything on the court\u201410 players, 3 referees, and the ball. The system generates millions of data points, allowing analysts to study where players and referees position themselves, how fast they do so, and much more. \u201cThat data is very granular,\u201d Sen says. \u201cWe\u2019re still trying to figure out how to use it in our integrity analyses.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the gambling side, the NBA has partnered with multiple sportsbooks. They receive broad data on sports betting trends and anonymized data on individual bets, which they use for integrity analysis only. Sports betting is expanding so quickly that Sen says one of their challenges is to learn the nuances of each market. How do online sportsbooks differ from Vegas casinos? Are there state-by-state differences in betting patterns and behavior? Each distinction creates another layer for analysis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Although data science is a major component of his work, Sen still considers himself an economist. \u201cI think of economists as having some underlying thought about what you would expect behavior to be, and then you try and test it,\u201d he says. \u201cData science is much more empirical in nature: you\u2019re looking for patterns and you come to your conclusions based on what you see in the data, then you come up with a story that\u2019s consistent with that.\u201d Both approaches serve his team well. They monitor growing streams of data for patterns\u2014or disruptions in patterns\u2014but they also consider<\/span> <span style=\"font-weight: 400;\">potential scenarios to watch out for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not unlike regulators on Wall Street, the NBA\u2019s basketball strategy and integrity team monitors all this information for signs of overt manipulation and looks for the athletic equivalent of insider trading. In a purely hypothetical situation, if Nikola Joki\u0107\u2014the NBA\u2019s defending MVP\u2014were to get injured, his absence from Denver Nuggets games would impact the point spread and shift betting patterns. In situations like that, Sen wants to know if betting trends change <\/span><i><span style=\"font-weight: 400;\">before<\/span><\/i><span style=\"font-weight: 400;\"> the injury is announced publicly\u2014which would suggest someone either intentionally or inadvertently leaked valuable information. Or, consider a slightly different scenario: the betting line on Nuggets games begins moving more than anticipated and there\u2019s no corresponding announcement of an injury. That might also raise an alarm. \u201cThere should be a basketball reason that explains the line move,\u201d Sen says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although Sen won\u2019t cite specific examples of his team\u2019s findings, he says it\u2019s rare that an urgent finding has to be brought to the immediate attention of the NBA\u2019s senior leadership or legal department. And even when they do flag something, closer examination typically rules out any intentional manipulation of games.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sen notes that early sports betting scandals could be comically simplistic. \u201cIt was like, \u2018Hey, I\u2019ll fall down six times and hope nobody notices,\u2019\u201d he jokes. The expectation today is that any attempt to alter a game\u2019s outcome, in front of dozens of high-def cameras and thousands of cell phones\u2014not to mention the scrutiny of data scientists\u2014would need to be far more sophisticated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The challenge for Sen and his team is to keep up with the growing range of data available to them, from new betting markets to complex video analysis to the flow of NBA information over social media. The one constant, he says, is \u201cwe\u2019re monitoring way more than you think we are.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arup Sen (GRS\u201913) analyzes gambling and basketball data to ensure the game\u2019s integrity<\/p>\n","protected":false},"author":21329,"featured_media":65494,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7,195],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/posts\/65493"}],"collection":[{"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/users\/21329"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/comments?post=65493"}],"version-history":[{"count":3,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/posts\/65493\/revisions"}],"predecessor-version":[{"id":65623,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/posts\/65493\/revisions\/65623"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/media\/65494"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/media?parent=65493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/categories?post=65493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/cas\/wp-json\/wp\/v2\/tags?post=65493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}