What is Sharp Money and Steam Moves in Sports Betting?
Sharp money refers to bets placed by professional gamblers, who often use data-driven models to find hidden value in odds and markets. Sharp bettors often wager large sums of money before the general public, which can cause sportsbooks to change their lines and odds.
Steam moves are often triggered by sharp money entering the market, but they can also be caused by betting syndicates, injury news, weather updates, or other market-moving information. Steam moves are sudden shifts in betting odds or lines for a particular game or event across multiple sportsbooks, and can indicate that sharp bettors have wagered on the game.
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What Is Sharp Money?
Sharp money in sports betting refers to substantial bets placed by professional gamblers, using advanced mathematical models and data-driven strategies. Sharp bettors identify value across sports lines and odds and place large wagers on mispriced selections, which causes line and odds shifts from sportsbooks in response.
Sharp Bettors vs Public Bettors
Question | Sharp bettors | Public bettors |
|---|---|---|
What are they? | Professional gamblers | Casual gamblers |
How do they pick bets? | Use data, models, and extensive research to find betting value | Often bet based on opinions, trends, team loyalty, or recent results |
Betting style? | Focus on consistently finding value and generating long-term profit | Bet casually and for entertainment purposes |
Why Sharp Money Matters
Sharp money represents bets placed by professional and highly-skilled gamblers, with access to data-driven analytical models that consistently beat the market.
Sharp money matters because sportsbooks view professional bettors as informed market participants. Their wagers can signal that a line may be mispriced, often leading sportsbooks to adjust odds and spreads. Sharp money matters to casual bettors as it can provide opportunity to follow sharp money.
Example of Sharp Money
The Philadelphia Eagles open as 4.5-point favorites against the New York Giants.
Although 80% of public bettors are backing the Eagles, sharp bettors believe the line should be closer to Eagles -2.5. As a result, professional bettors place significant wagers on the Giants +4.5.
Respecting the opinions of these sharp bettors, sportsbooks adjust the spread from Eagles -4.5 to Eagles -2.5.
This movement makes the Giants less attractive at the new number while reflecting the market's revised assessment of the game.
In this example, the line moved toward the Giants despite most public bets being on the Eagles. This is known as a reverse line movement and is often viewed as an indication of sharp money influencing the market.
Reverse Line Movement
Reverse Line Movement (RLM) occurs when a betting line moves against the side attracting the majority of public bets. Under normal circumstances, sportsbooks adjust odds toward the popular side to balance action and manage risk. However, when the line moves in the opposite direction, it often suggests that sportsbooks are reacting to wagers from respected professional bettors rather than overall betting volume.
For example, if 75% of bets are on the Chargers at -3, but the line drops to Chargers -2.5, that's considered reverse line movement. Despite most bettors backing the Chargers, the sportsbook has made them less of a favorite, which can indicate sharp money is coming in on the opposing side and carrying more weight than public action.
What Are Steam Moves?
Steam moves are drastic shifts in betting lines or odds across multiple sportsbooks for a specific game or event. When sharp money enters the market from sharp bettors, sportsbooks react by altering their lines and odds in order to protect against big losses. These odds changes are steam moves.
Example of a Steam Move
The Kansas City Chiefs open as 3.5-point favorites against the LA Rams.
A group of respected sharp bettors identifies value on the Chiefs -3.5 and places large wagers at several sportsbooks.
The sportsbooks react by moving the spread to Chiefs -4.5 to reflect the new market information and discourage additional action on Kansas City at the old number.
Other sportsbooks across the market quickly follow suit, moving their own spread from Chiefs -3.5 to Chiefs -4.5.
Because the line moved rapidly across multiple sportsbooks in response to sharp betting activity, this is known as a steam move.
Steam Moves vs Sharp Money
Question | Sharp money | Steam moves |
|---|---|---|
What is it? | Bets placed by professional or highly respected bettors | Sudden, widespread odds movement across multiple sportsbooks |
What causes it? | Sharp bettors finding value and placing significant wagers | Sharp action, betting syndicates, breaking news, or market reactions |
What should public bettors look out for? | Where respected money is being placed | How quickly and how far betting lines are moving |
Pros and Cons of Following Sharp Money
Following sharp money can help bettors identify potential value opportunities, but it does not guarantee long-term profitability. Here are some pros and cons of following sharp money:
Pros
- Provides insight into where professional bettors see value
- Helps identify potential betting opportunities before odds move further
- May highlight games where public opinion differs from market experts
- Can be useful for spotting reverse line movement
- Helps recreational bettors understand how betting markets react to information
Cons
- The best odds are often gone by the time the move becomes public
- Not every line move is caused by sharp money
- Sharp bettors don't win every bet
- Blindly following sharp money ignores important factors like injuries, matchups, and weather
- Some line moves can be driven by sportsbook adjustments rather than professional betting activity
Common Mistakes to Avoid
There are several mistakes to avoid when following sharp money. One mistake is not managing your bankroll correctly, and trying to follow every sharp money bet. Sharp bettors generally have much larger bankrolls than casual bettors, therefore blindly following a sharp bettor's activity isn't sustainable long term.
Another common mistake is following every line movement without considering why it occurred. Not every line movement is due to sharp money entering the market, it can also be caused by factors such as injury news, weather changes, and other game-changing events.
Additional Betting Insight & Explainers
The Fanatics Sportsbook blog offers further insight to sports betting markets, terms, and methods, including:
- What Is a Futures Bet? Futures Betting Explained
- What Is a Middle Bet in Sports Betting
- What Is a Prop Bet? A Beginner's Guide to Sports Prop Betting
- What Is Line Movement in Sports Betting?
- What Is Bankroll Management in Sports Betting?
- What Is a Round Robin Bet?
- What Is Closing Line Value (CLV) in Sports Betting?
- What Is a Teaser Bet in Sports Betting?
- What Is a Point Spread?
- What Is a Live Sports Bet?
- What Is the Vig in Sports Betting?
- What Is Cash Out?
Sharp Money FAQs
What is the difference between sharp money and public money?
Sharp money is bets placed by professional sports gamblers, using mathematical models to find value. Public money is bets placed by the general public and casual bettors, who bet recreationally and for entertainment, rather than analyzing models for long-term profitability.
Are steam moves always caused by sharp bettors?
Steam moves are often caused by sharp bettors, as the market shifts across sportsbooks following smart money entering the market. However, steam moves can also be caused by injury news, weather changes, and other factors.
Can following sharp money make you a profitable sports bettor?
Following sharp money can improve your chances of being a profitable sports bettor, as you are following sharp bettors, who consistently beat sportsbooks over the long term. However, you are not guaranteed to be a profitable sports bettor by following sharp money.
Reviewed by Joe Dixon