The purpose of this paper is to provide an insight into the functioning of the sports betting market and to present several profitable betting strategies while providing practical guidelines and the necessary theoretical knowledge that could enable the reader to successfully invest in the sports betting markets and provide ideas for the creation of their own personal strategies. The emphasis will be on the concepts and research of behavioral economics on the behavior and decision-making of people in conditions of risk and uncertainty as the main landmark for identifying market inefficiencies and potentially profitable investment opportunities, and for avoiding the traps that a large number of bettors fall into by choosing outcomes with very unfavorable expected value and inadequate investment methodologies. In addition to betting strategies based on behavioral economics research, the paper will also show an example of creating a statistical model for predicting sports events, then explain the extremely important concepts of market efficiency and the wisdom of the crowds that will be connected to the analysis of one of the horse racing betting strategies that the author used in one phase of his betting "career". The last part of the paper deals with risk and capital management in sports betting, variables that need to be taken into account when planning an investment strategy and a comparison of the most popular investment methods with a presentation of their advantages and disadvantages.