The bookmaker doesn't care how often you win. Offices will always be in the black because of the margin.
The bookmaker earns through the margin, and not through the loss of the players. The offices do not care what you bet on and how much you win. In this article, we will analyze what the bookmaker's margin is in sports betting, how it affects the profit and how to calculate it.
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What is sports betting margin
Bookmaker margin - commission on the betting market. Due to the margin, the bookmaker will always be in the black at the distance.
The margin is easy to understand when betting on equiprobable outcomes. The probability of falling heads and tails when flipping a perfectly symmetrical coin is 50%.
Convert odds to odds using the formula :
100 / P , where P is the percentage probability.
Find the probability as a percentage by the inverse formula:
100 / K, where K is the coefficient.
Without margin, the odds for falling heads or tails are 2.00: 100/50.
The bookmaker can give odds on heads or tails, for example, 1.90. In this case, the probability of heads or tails is 52.63%: 100 / 1.90.
The sum of the probabilities is 105.26%: 52.63% + 52.63%. This extra 5.26% is the bookmaker's margin.
Read about the theory of probability in sports betting here:
Influence of bookmaker's margin on profit at a distance
ROI is the ratio of net profit to the amount of bets.
Calculate ROI as a percentage using the formula :
net profit / bet amount x 100
For example, you made 100 bets of 1000 rubles each on events with two possible outcomes. Depending on the margin and pass rate, the results might look like this:
ROI at 60% traffic
ROI at 50% traffic
ROI at 40% traffic
To be successful in sports betting, you must know how to calculate your margin. The higher the margin, the greater the bookmaker's profit in the distance. With equiprobable outcomes, you need more than 50% flotation to be profitable.
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