A sportsbook is a service that allows people to place wagers on sporting events. Bettors can bet on things like which team will win a game, how many points or goals a team will score, or even a specific athlete’s statistical performance. Generally, the amount of money someone can win or lose depends on their skill, the odds (which are established by the sportsbook based on the probability that something will happen), and which sportsbook they choose to work with.

The rise of online and mobile sportsbooks has been fueled by the 2018 Supreme Court decision that made sports betting legal in most states. This has enabled consumers to shop around for the best odds and to place their bets quickly, conveniently, and securely. However, while the explosion in sports betting has been great for the industry, it has also brought with it a host of challenges.

Those challenges include the growing competition and regulatory uncertainty in the sector, as well as the increased costs of running a sportsbook. One way to minimize these costs is to run a sportsbook as a white label, which can lower upfront development expenses and ongoing operational costs. But this approach can wreak havoc on margins, which are already razor-thin in the industry. And it can also limit the ability to offer a customized user experience that will keep customers coming back.