Despite a record-breaking year, Donald is a 16/1 shot to take the award in which fellow golfers Darren Clarke and Rory McIlroy are at 3/1 and 9/1 respectively.
The world's number one golfer has had a remarkable year where he has won both the US and European money lists after sealing the Race to Dubai title last weekend.
William Hill spokesman Rupert Adams said: "There can be little doubt that the golf vote is going to be split between the three players in the shortlist."
In 2012, Donald will be looking for the most-coveted of titles, a Major, and William Hill are already offering prices on Donald in the Majors.
He is 1/8 to win none, 3/1 to win one, 20/1 to take two titles, 100/1 for a hattrick of Majors and 200/1 for a clean sweep of all four.
You can also get prices on which tournament you think he will do it in. Donald is 16/1 to win the US Masters 2012, 18/1 for the US Open 2012, 18/1 for the Open 2012 and 20/1 for the USPGA 2012. If you think he will claim his first Major in 2013 or later you can get odds of 1/8.
Latest BBC SPOTY odds with William Hill:
Mark Cavendish 2/5 Darren Clarke 4/1 Rory McIlroy 10/1 Mo Farah 12/1 Luke Donald 16/1 Alistair Cook 50/1 Andrew Strauss 100/1 Dai Greene 100/1 Andy Murray 150/1 Amir Khan 150/1
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