A sportsbook is a gambling establishment that accepts bets on various sporting events. It establishes odds based on its own predictions and game analysis, and then pays bettors who win by taking on the losing wagers of those who place bets against them. It operates akin to traditional bookies and is often found online, in gambling cruises or on land in certain countries. In order to operate a legal sportsbook, it must comply with local gambling laws and have adequate resources.

The sportsbook offers a variety of betting options, including straight bets and multiples. Straight bets are single wagers on a specific outcome, such as a team beating another. Multiples are bets on multiple teams, and include doubles, trebles and accumulators. The sportsbook also offers a number of props, or proposition bets, which are predictions on various aspects of the game.

Many sportsbooks operate in states where sports gambling is legal, and are a major source of revenue for the professional leagues they represent. The NFL, for example, made $14 billion in bets between 2012 and 2014.

To be profitable, sportsbooks must offer competitive odds and be able to balance their action on both sides of the market. In addition, they must have a high risk merchant account to process customer payments. High risk merchant accounts have higher fees than their low risk counterparts, and so it is important for sportsbook operators to shop around for the best rates.