Bookmaker's margin: how to calculate it yourself in a bookmaker's office, calculation with a calculator
When choosing a bookmaker, novice bettors usually pay attention to everything except the bookmaker's margin. What is the bookmaker's margin, how to calculate it and why you need to calculate it, we will analyze in this article.
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What is bookmaker margin
Margin translated into Russian is “difference, advantage”. Bookmaker's margin is the amount of commission that bookmakers put into the odds. The bookmaker earns on margin for any outcome of a sporting event, charging a commission on the amount of bets. It is this, and not the lost bets, that provides the bookmaker business with profitability.
Margin distorts the net probability of an event inherent in the odds. If we add up the odds of all possible outcomes of the match and do not subtract the margin, then the sum of the probabilities will be more than 100%.
Let's imagine a situation. You are watching a tennis match between two debutants. No one knows the strength and experience of each, other factors are not taken into account. In this case, the probability of everyone winning is 50%. Like, for example, the probability of getting heads or tails when flipping a coin with an ideal center of gravity. Convert odds to odds using the formula: 1 / probability x 100 = 2.00. Or: 1/50 x 100 = 2.00.
There is no margin in this ratio. Better # 1 will bet 100 rubles on the first athlete, bettor # 2 will bet 100 rubles on the second athlete. Whoever wins, the bookmaker will not receive anything: he will simply transfer 100 rubles from one bettor to the hands of another bettor.
Therefore, the bookmaker includes margin. He is the organizer of the dispute and wants to get his well-deserved commission. And the odds are going down. With equal odds, they can be 1.95 at 1.95, and 1.90 at 1.90, and 1.85 at 1.85, and even lower. And in this case, the bookmaker will receive 100 rubles from the loser and the winner will pay less.
What is the size of the bookmaker's margin
The margin differs from bookmaker to bookmaker. Moreover, for the same bookmaker, it differs depending on the sport, tournament, event and even the bet you are going to make.
It is customary to distinguish between fundamental and low-margin bookmakers. The former set a high percentage of the margin. Average about 5-7%. Low-margin companies operate with a margin of 1.5-3%. But this does not mean that the second type of bookmaker will suit you more than the first. And that's why.
Fundamental offices are aimed at a wide audience. They offer a large selection of events with different betting options. In return, the player will have a high margin on unpopular markets, statistics. In most fundamental bookmakers, the odds for top events are approximately equal to those of low-margin bookmakers.
Low-margin bookmakers are distinguished not only by low margins, but also by a limited supply of markets for bets. Such offices attract professional players who play on the difference in odds for one event in different bookmakers. To the rest, such an office will seem "insipid" due to the lack of a wide line, bets on statistics and good live.
Are there bookmakers without margin?
Not. But it happens that the bookmaker sets the odds without margin. This happens in the framework of special promotions for top matches. Usually, the odds are raised to the maximum only on the outcome of the game.
Why be able to calculate the bookmaker's margin
Understanding what the bookmaker's margin consists of and how to calculate the margin allows you to adequately assess the bookmaker's odds.
Knowing what a bookmaker's margin is will allow you to assess the profitability of your game. Let's say, with a bookmaker's margin of 2.5%, the level of the bettor's profitability will be about 7.5% of all bets with a 52% pass rate. But if the margin grows to 5%, then the player's profitability on bets will decrease to 3.5-4% with the same percentage of traffic.
How to calculate the bookmaker's margin
No special knowledge is required to calculate the margin. The betting commission in the market can be calculated using a fairly simple formula. In a sporting event with two outcomes, the formula will be as follows:
Margin = (1 / odds # 1 + 1 / odds # 2 - 1) x 100
For an example, let's again take a standard two-way outcome - the outcome of a tennis match. The odds for player # 1 - 1.66, for # 2 - 2.20. Let's substitute in the formula. Calculation: (1 / 1.66 + 1 / 2.20 - 1) x 100 = 5.6%.
The calculation of the margin in a market with three outcomes is complicated by an additional arithmetic operation. Formula: margin = (1 / coefficient # 1 + 1 / coefficient # 2 + 1 / coefficient # 3 - 1) x 100.
To calculate the threefold, let's take a football match with the odds: the first one won - 1.66, the second won - 4.33, a draw - 3.75. The bookmaker's margin is: (1 / 1.66 + 1 / 4.33 + 1 / 3.75 - 1) x 100 = 9.8%.
You can also use the calculator service. It is enough to enter the coefficient k. Of the possible outcome - and you will find out the margin in the market.
When playing in a bookmaker's office, you should understand that the bookmaker has already provided himself with income thanks to the margin in the odds. The bookmaker makes a profit for any outcome of a sporting event. The ability to calculate the margin will help you select profitable events and increase your chances of winning at bookmaker offices.