Why Do Sportsbooks Make So Much Money?
What is it that almost all sports bettors have in common? They’ve contributed significantly to the bottom lines of multiple different sportsbooks. They are left wondering how the people collecting bets and giving out winnings maintain losing money continuously after their aggravation gives way to curiosity.
While there are many varied responses to the topic, the majority of them boil down to mathematics and the minimal likelihood of long-term profitability. This is why sites like bettingsites24.in also often provide tips on how to “win against” sportsbooks, using math. In this post, we will explore why bookmakers routinely gain money and why sports bettors have little control over it.
How do bookmakers stay in the business
What if everyone places one’s bets on one team and that team wins? Couldn’t that put the sportsbook out of business? In theory, it could. A sportsbook, on the other hand, would never allow the betting public to put too much money on any one side of a bet. Sportsbooks stay in business and generate money continuously by dividing the entire amount staked on an event evenly between both sides of the bet.
Consider these pretend odds: Cowboys +6 (-110) and Patriots -6 (-110), with a spread of over/under 51.5.
An even money bet is a rare occurrence. The vig, which is now shown next to the lines, is the percentage of the money you’ll earn back if you wager $100. At –110, you will get $90 for every $100 wagered. If it was +110, it would signify that you would receive $110 for every $100 stake.
Assume you and a friend have opposing views on how this game will play out. You believe the Cowboys will win and place a $100 wager on it. Your friend believes the contrary, so he bets $100 on the Patriots. The sportsbook has just received $200 in wagers. However, the winner will just have to pay $190. With no stake in the outcome of the game, the sportsbook has pocketed $10 from your total bets.
This is why bookmaking is such a profitable industry. All you have to do is sit in the center of the bettors and enable betting while taking no sides. They can ensure a win for themselves by not choosing sides. It’s a little triumph, but over time, that $10 adds up quickly.
“Bad” picks are good for the sportsbooks
If you’ve ever entered your wager into the “Risk to Win” calculator, you’ve probably noticed that the rewards for parlays appear to be rather good. Given that, it’s shocking to learn (the hard way) that these bets aren’t the golden key to gambling success. While there’s nothing wrong with playing them now and again, the fact is that, despite the alluring rewards, you’re not receiving very high odds on these bets.
No, you are not being utterly duped. If you were, you would not place these wagers. That is why sportsbooks have a strong interest in making them at least somewhat affordable. You wouldn’t, for example, bet on the spread at -150, would you? That is simply not worth it. But -110? That is normally okay. When you examine the odds, parlays, for example, don’t add up. It’s difficult to understand if you don’t completely understand the mathematics, but suffice it to say that these bets often don’t provide the player advantageous odds until around four out of five legs. And everyone knows that a two-leg parlay is difficult, let alone a lengthy one twice (or more) as long.
Before you go
New gamblers may be disappointed to hear what seasoned bettors have known for some time: the odds are not in your favor. Your losses should not be catastrophic if you manage your money effectively and make wise bets. Finally, keep in mind that betting on sports is intended to be enjoyable by putting some money on the line.