There is no real market participant who could benefit from hedging in sports betting. Only sports betting operators themselves, and the teams (who are legally forbidden from participating in betting).
But in a commodity market there are real participants whose primary business model is production, being able to hedge against future price swings provides real value to these businesses.
> There is no real market participant who could benefit from hedging in sports betting.
The entire local economy surrounding sports venues. For a small bar or restaurant near a stadium, the difference between a good season and a bad season can be huge. This is magnified to the nth degree in places like Green Bay, WI where renting out one's home for a single at home post-season game can easily net a family several month's worth of mortgage payments.
And all advertisers who have contracts with the teams, all shops selling their merchandise, and they'd all have a large interest in hedging their bets.
Why is this different than the massive sports-merchandising part of a teams business, where they sell more stuff depending on whether they win or lose? I imagine they'd want to bet.. err i mean hedge to provide real value to their business.
(despite the snark, I'm also curious how the situation is different)
But in a commodity market there are real participants whose primary business model is production, being able to hedge against future price swings provides real value to these businesses.