A sportsbook is an entity that takes bets on sporting events and pays out winners according to a set formula. It also collects the stakes of bettors who lose. A sportsbook must offer competitive odds and a comprehensive range of betting options to attract customers. It should also ensure compliance with regulations in order to maintain trust and credibility.

Generally, there are two ways for a sportsbook to earn an operating margin: straight bets and futures bets. A straight bet is a wager on the outcome of a single event. For example, if the Toronto Raptors are playing the Boston Celtics in an NBA game, you would place a bet on the team to win. A futures bet, on the other hand, is a wager on the winner of an entire season or tournament. For example, a UFC fan might place a bet on Francis Ngannou to win the next fight against Ciryl Gane.

Sportsbooks set their odds to balance action and reduce liability. In reality, however, the action often skews one way or another. In these situations, the sportsbook must either adjust the line or engage in offsetting bets (betting against other bettors to limit their exposure).

Offshore sportsbooks are an excellent way for sportsbooks to expand their customer base and offer more betting options. These sites typically offer better odds and a greater variety of bets than their domestic counterparts. They are also known for their customer service and a high level of transparency. Moreover, offshore sportsbooks can accept cryptocurrencies, which are popular with bettors who prefer privacy.