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How to Explain Sport Odds: Girlfriend Edition

How do sports bets work?

In order for online bets to make a profit in the long run, it is not enough to understand a thing or two about a sport. It is also important to know the mathematical foundations of bookmaking. In this article, we will pay attention to the mathematical side of the issue in sports betting – the calculation of winnings, the formation of coefficients, the probability of outcomes, margin, and gaining an advantage over bookmakers – everything that a rookie should not about this entire industry and how to make profit out of it.

How is the winning bet calculated?

The amount of winnings depends on the amount of the bet and the outcome ratio. The net profit is calculated as follows: multiply the coefficient by the amount of the bet, and then subtract the money that was bet. So, if you bet 100 dollars on the outcome with a coefficient of 1.80, the gain will be 180 dollars. And net profit will amount to $80.

Experienced players who are not new to the industry avoid low odds, as this is an unreasonable risk. A small ratio is not a guarantee of victory, and losing one bet, for example, with a ratio of 1.10, means that you need to win ten of the same bet in order to return one loss.

The formation of the coefficients of the bookmakers

Bookmakers analyze each match before adding it to the line with all the outcomes. In fact, only a few bookmaker offices have their own analytical department, and the rest acquire coefficients from special companies, but this is a technical aspect of their job which is of little interest to players.

In order to set coefficients, analysts need to correctly assess the chances of the participants in a given event, as well as predict the outcomes for which the most money will be raised. Initially, the probability of all outcomes is calculated which is then translated into financial quotes.

In order to translate a probability into a ratio, you must divide 100% by the probability index. If the probability of a result is 50%, then the coefficient is 2.00. During the process of assessing the odds, statistics are taken as a basis, as well as additional information about a given match: injuries, inner relationships, motivation, and so on.

Having received the initial ratios, analysts then try to predict the flow of money, lowering the financial quotes for more popular outcomes and overstaying the less popular ones, thereby triggering a uniform distribution of funds. Actually, it is for this reason that the coefficients for the favorites, in most cases, are greatly underestimated.

While all of this financial information may sound monotonous and maybe even boring, betting is an exciting industry that allows a person to combine their love for sports with their love for money. Thus, everyone can find something about betting that they will enjoy. If you don’t have a partner to bet with, then be sure to check out the following site to start dating a Canadian woman.

What are bookmaker margins?

After assessing the odds and adjusting them in accordance with the expectation of the players' stakes, the bookmakers lay the margin in the odds. This is a certain percentage, an additional probability, which is different for each company – from 2% to 20% or more. One bookmaker can have lots of different margins for different sports, football, soccer, hockey, etc. You can calculate the margin manually or by using special sites.

Thanks to the margin, bookmakers get an advantage over an average player and, despite the result of a given match, end up with at least some profit. After all, by accepting bids from clients, the coefficients change depending on the amounts of money bet for a particular outcome. Thus, the line is adjusted continuously, maintaining the desired balance and, accordingly, a guaranteed income.

How to get an advantage over a bookmaker?

From the previous paragraphs, you learned that the profit depends directly on the odds, which is an expression of probability, and that bookmakers are always in the black because of the margin, while regular players are in a losing position.

Based on this, we can conclude that to get an advantage over a bookmaker, it is necessary to bet on overstated coefficients – a situation when the probability of winning is higher than the probability index, which corresponds to the financial quote of a bookmaker. Such bets are called “value bets,” and, in the long run, they guarantee a profit to a player.