How bookmakers work: what it is, how they are arranged and how they earn money

How bookmakers work: what it is, how they are arranged and how they earn money
Bookmaker's clients are knowledgeable in sports, but most are negative. One simple trick gives bookmakers a long-term profit.

Bookmakers make money even when you win. BC came up with the perfect mechanism. In this article, we will analyze what a bookmaker is, how the bookmaker works, how it works, where it gets the odds from and how it makes money.

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What is a bookmaker

A bookmaker is a betting establishment.

You can bet money not only on sports, but also on events from the world of culture, politics, economics, and so on.

You can become a client of a betting company from the age of 18. To do this, you need to register and verify your identity.

Bookmakers accept bets before the start of the event and in real time.

In Russia, the bookmaker must be licensed by the Federal Tax Service. Such bookmakers are called legal. They pay taxes, comply with the laws of the Russian Federation, and make payments through MCCIS.

Read more about what TSUPIS is and why you need it here:  Bookmaker CUPIS: what is it and why is it needed in sports betting

Bookmaker work

The BC employs specialists of different directions: analysts, marketers, developers, lawyers, designers, technical support staff, security specialists and others.

You can get to work in a bookmaker's office just like in any other organization: send a resume and pass an interview.

How bookmakers work

The principle of the bookmaker's work is to make a profit for any outcome of a particular event.

Some of the players will win and withdraw money, but the bookmaker will benefit from the margin.

The margin is the bookmaker's commission.

Determine the margin using the formula:

(1 / K1 + 1 / K2 +… + 1 / Kn - 1) x 100 , where K1, K2, Kn are the odds in one market, n is the number of selections in that market.

For example, in the volleyball match Dynamo Moscow - Zenit Kazan, BC analysts gave 40% to win the hosts and 60% to win the guests.

Convert the probability to odds using the formula:

100 / P , where P is the probability in percent.

Without margin, the odds will take the following form:

2.50 to win Dynamo: 100/40 and 1.67 to win Zenit: 100/60.

Let's imagine that the bookmaker decided to set the margin at 5%. The extra 5% will proportionally add to the probabilities of both teams:

  • 2% to Dynamo's winnings: 5% x 0.40. Total 42%: 40% + 2%.
  • 3% to Zenit's victory: 5% x 0.60. Now 63%: 60% + 3%.

After adding the margin, the odds will look like this:

2.38 at Dynamo: 100/42 and 1.59 at Zenit: 100/63.

The bookmaker's profit depends on the margin and on the turnover of the bet money, and the result of the match is secondary.

Methods of forming odds in bookmaker companies

To set a line for a match, the bookmaker will have to assess the probabilities of a particular outcome, add margin and convert the odds into odds. However, the BC is ready to make changes at any time.

The following reasons can lead to coefficient adjustments:

  • New information about the match. Injuries and other news affect the balance of power and force us to re-evaluate the chances of opponents.
  • Progruzov. Due to the large number of bets on one of the outcomes, bookmakers reduce the coefficient for this choice and increase it for the opposite one.

The main task of the bookmaker is the activity of existing clients and the attraction of other players. Bookmakers put margin in the odds and change them if necessary. On a short distance you can go in positive territory, but in a long distance the vast majority will be in negative territory.

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