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All You Need to Know About Oddsmaking

The popularity of sports betting has skyrocketed in recent years, and finding the most appealing odds is the daily mission of many punters worldwide. Moreover, you don’t even need to go out of your house to place a bet, as the perfect betting site is only a click away.

And while punters are highly interested in the potential winnings from the odds, not many of them have bothered to find out how these odds are created in the first place. In case you belong to that small percentage of people interested in oddsmaking, the text below will provide you with the most interesting information about the process. Let’s get into the story, shall we?

How Has the Process of Oddsmaking Changed Over Time?

Oddsmaking is not a new concept, as sports betting originated long before computers came into existence. However, oddsmaking in the past looked quite different than it looks today.

It all began in small rooms where oddsmakers had chalkboards on which they were trying to calculate the right numbers. Everything had to be done manually since there were no software and programs to assist in any way.

Until sports betting became officially legal, oddsmakers had to work in secret as well. Only after it was officially allowed to bet on sports events have oddsmakers started making their odds publicly available and open for use.

Then, with the help of technological developments, oddsmaking took the electronic form and became much easier.

Oddsmaker’s Goal

While the process of creating odds has drastically changed, one thing remained the same — the ultimate goal of oddsmakers. Oddsmakers have the assignment to create the odds in such a way that there is a balance of action between the two sides of the wager.

However, punters need to bear in mind that this balance doesn’t mean a bookie wants them to win every time. The betting lines should actually represent the real probability of realization for both outcomes.

Of course, don’t think that bookies haven’t covered themselves in the process of oddsmaking. After all, they would rather see themselves win more often than you. Yet, you can get an edge over your sportsbook by analyzing the odds and finding a discrepancy between the real probability of the outcome and the one oddsmakers handed to you.

The Principle of Creating the Odds

Yet, before you go all crazy about finding the loophole you can use to get rich, let’s see how the odds are created in the most simple way possible. What does it mean that oddsmakers design these odds to attract equal action on both sides of a wager and why is it important?

The answer to this is the assumption that an equal amount of money will be placed on both sides of the bet. For example, if you bet on team X to win a football match, bookies want someone to bet on team Y to win the same match.

In this way, bookmakers get equal profit for both outcomes and don’t care what will happen in the end. No matter which team wins, the bookie secured 5–10% on the so-called vig — a fee that bookmakers incorporate into every bet.

Therefore, the oddsmakers are, more or less, a risk management team that is trying to make both parts of the equation happy, but in the end, it works for the bookie and not for you.

Who Creates Sports Betting Odds?

Oddsmakers today consist of a team of professionals in charge of finding this balance in creating the odds. These professionals are mathematicians and statisticians who, apart from being good with numbers, also need to understand the way betting market functions.

Although they nowadays use modern technology, people who create the odds have to be able to handle all the data and trends from previous years, as well as take into account all the main factors that could affect the outcome of the game today.

Therefore, we can come to the conclusion that technology greatly improved oddsmaking as such, but still cannot function properly without a human factor.