One of the most appealing aspects of betting on sports is that it is possible to consistently make profits as long as you know what you are doing. All you need is the expertise to apply the right strategies and know what tricks to put to use. It is certainly not impossible.
However, most bettors lose money in the long run. There are a variety of reasons regarding why this happens. To avoid this scenario, bookmakers use a range of techniques to ensure that they are always in an advantageous position, irrespective of what happens while betting.
How Do Bookmakers Make Money?
Successful sports betting, to put in simple words, is all about overcoming this advantage. Bookmakers are the opponents of a bettor and if you wish to earn profits, you need to learn how you can beat the bookmakers. To do this, it is important that you understand how they earn money and that’s why were are here with a concise guide on how bookmakers make money.
In this article, we shall walk you through the methods and tricks used by bookmakers to give themselves an advantage. Let us get started.
How do they make money?
- They set the right prices for each bet.
- They set and change the betting lines.
- Balance the book, i.e., avoid risk.
- They count on bettor emotions and their lack of expertise.
The basic premise of bookmaking is quite simple and pretty straightforward. A bookmaker collects money from the bettor whenever he/she places a bet and pays money to the customer when they win a bet. The core idea behind this practise is to make more money than paying. The art of bookmaking ensures that this happens in most cases.
While bookmakers can certainly not control the results and outcomes of a sports event, they can control how much they stand to win or lose in a particular event. Thus, they set the odds for all wagers that can be placed and this ultimately gives them the scope to make profits.
Overround is one of the most important techniques a bookmaker uses to place the odds in their favour. It is built into the odds the bookmakers set to help them earn profits. This might be called the commission charged by the bookmakers for placing wagers. Let us take the example of a coin toss to put this into perspective.
The toss of a coin, as we all know, has 2 possible outcomes, and each of them has an equal likelihood. Obviously, there is a 50 per cent chance of heads and a 50 per cent chance of tails. So, even if a bookmaker was trying to offer the correct odds on the toss of a coin, he/she would still offer money. That equals 2.00 in decimal odds, a +100 in Moneyline odds, and a 1/1 in fractional odds.
Role of odd compilers
Odd compilers, as the name suggests, work on setting the odds at bookmaking firms. They are also called traders, and their role is extremely important. The odds that are eventually set determine how much money the wagers can take in and how much profit the bookmaker will make. This act of setting the odds for a sports event is termed as pricing the market.
There are a variety of aspects involved in pricing up markets. One of the most important pricing goals is to ensure that the odds accurately reflect how likely a particular outcome is while ensuring that the bookmaker makes a profit. Although this is primarily based on statistics, it also needs a definite amount of sports knowledge.
We assume that it is now clear how bookmakers use tricks to enjoy a mathematical advantage over their bettors. Although they do not win profits on every bet, they make sure to earn money in the long run. The more you practise and learn about sports betting, the easier you can beat this advantage.
If you wish to get better at sports betting and also earn extra bucks, we advise you to visit popular sites like FreeBets, which not only sees that bettors are benefited from the best of sports knowledge but also has valuable insights and betting events that you would appreciate.
HussaiN is a full-time professional blogger from India. He is passionate about content writing, Tech enthusiast & computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet.