- The bookmakers' mathematics of bookmaking
- Understanding odds fluctuation
- How to achieve consistent profits
Every bettor dreams of outsmarting the bookmaker. However, becoming a consistently winning bettor involves more than just mastering odds calculations; understanding how bookmakers sustain their profitability is equally crucial. This exploration reveals the strategies that ensure profitability for both bookmakers and seasoned bettors alike.
The concept of "making a book" refers to the process of accepting bets on various outcomes of an event. This term traces back to the era of recording bets in a hardcover ledger, which coined the term "bookmaker."
Bookmakers have existed for millennia in various forms. Their function mirrors that of a stockbroker, pooling bets on different outcomes and settling with the winners post-event. For providing this service, they charge a fee or margin, aiming for profit.
The mathematics of bookmaking
7x7Bets, like other online betting platforms, employs a team of experts known as traders or odds compilers. Their role is to establish odds that reflect each outcome's likelihood plus the bookmaker's margin, considering both statistical probabilities and public sentiment.
Determining the odds for any event is complex. Traders consider numerous factors like team performance, player injuries, referee impact, and home advantage. They calculate the genuine probability of outcomes and then incorporate the margin.
Below are the 7x7Bets’ odds for the match Leicester City vs. Norwich City on Saturday, 27th February.
Odds | Implied Probability | |
Leicester City | 1.531 | 65.32% |
Draw | 6.81 | 14.68% |
Norwich | 4.54 | 22.03% |
If you add up the probabilities, you will notice that you get 102.3%, meaning that the bookmaker has a profit margin of 2.3%, assuming balanced action on all sides.
The pricing range for a match can span from 101% to 120%, influenced by the market and betting volume. Premier League games, for instance, are usually priced around 104%.
Savvy bettors aim to find the best odds to maximize returns. A bookmaker's high margins translate to less favorable odds, impacting long-term profitability.
It's vital to be aware of the margins your bookmaker sets. If their margins for popular markets exceed 104%, it's wise to look for a bookmaker with lower margins. For less popular markets, margins around 110% are standard.
Understanding odds fluctuation
Traders, unlike bettors, do not gamble on outcomes but strive to balance bets across all possible results, ensuring profit regardless of the outcome.
After setting the odds, traders monitor the distribution of bets. Stable odds indicate that bets align with the traders' predictions. However, an uneven distribution prompts odds recalibration.
Let's take the Leicester City vs. Norwich City match from above and assume that 100 bettors placed their $1 worth bets as follows:
Odds | Bets distribution | |
Leicester City | 1.531 | 75% |
Draw | 6.81 | 10% |
Norwich | 4.54 | 15% |
If Leicester wins, the bookmaker will collect $100, but will have to pay out $75*1.531 = $114.825. In this case, the software used by the traders will start to indicate a loss and the odds will be readjusted.
These adjustments, aimed at maintaining balanced books, create opportunities for arbitrage betting or "sure bets."
Consistent profit making
Arbitrage betting involves leveraging differing odds from various bookmakers to guarantee profit, exploiting the combined margin in the bettor's favor.
7x7Bets is recognized for offering competitive margins as low as 1.5% for soccer and baseball, embracing a low-margin approach across all markets. This makes us frequently featured in arbitrage betting software.
Understanding bookmakers' revenue strategies gives you an edge over average bettors. For practical insights into arbitrage betting, consider reading our comprehensive guide on arbitrage betting strategies—an essential read for aspiring professional sports bettors.
Now you know how bookmakers make money. Sign Up Now or click HERE to play at 7x7Bets, the most reliable and trustworthy online casino in India. Don't forget to claim your withdrawable real money welcome deposit bonus, weekly cashback bonus and referral bonus!
Comments