Clients of the betting shop understand sports, but most of them play in the red. One simple trick gives bookmakers a profit over the course.
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 a betting shop works, how it works, where it takes odds from and how it earns.
What is a bookmaker
A bookmaker is a betting shop.
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.
Working at a bookmaker
The bookmaker employs specialists from various fields: analysts, marketers, developers, lawyers, designers, technical support staff, security specialists, and others.
You can get a job in a bookmaker just like in any other organization: send a resume and have an interview.
How bookmakers work
The principle of the bookmaker’s office is to make a profit in any outcome of an event.
Some of the players will win and withdraw money, but the bookmaker will be in the black due to the margin.
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 odds in one market, n is the number of outcomes in this market.
For example, in a volleyball match between Dynamo Moscow and Zenit Kazan, BC analysts gave 40% for the hosts to win and 60% for the guests to win.
Convert the probability to coefficients using the formula:
100 / P, where P is the percentage probability.
Without margin, the odds will look like this:
2.50 to win Dynamo: 100/40 and 1.67 to win Zenit: 100/60.
Let’s imagine that the bookmaker decided to set a margin of 5%. The extra 5% will proportionally add to the probabilities of both teams:
2% to Dynamo winnings: 5% x 0.40. Total 42%: 40% + 2%.
3% to the victory of “Zenith”: 5% x 0.60. Now 63%: 60% + 3%.
After adding the margin, the odds will look like this:
2.38 for Dynamo: 100/42 and 1.59 for Zenit: 100/63.
The profit of the bookmaker’s office depends on the margin and on the turnover of the bet money, and the result of the match is secondary.
Ways of formation of odds in betting companies
To set a line for a match, the bookmaker will have to evaluate the probabilities of a particular outcome, add a margin and convert the odds into odds. However, the BC is ready to make changes at any time.
Factors may be adjusted for the following reasons:
Odds in other bookmakers. In order to prevent surebets, bookmakers evaluate the line of competitors and make changes. Read more about what a fork is in sports betting here:
What is a fork in sports betting: how does this strategy work for bookmakers
New information about the match. Injuries and other news affect the balance of power and force you to re-evaluate the chances of your opponents.
Loads. Due to the large number of bets on one of the outcomes, bookmakers reduce the odds for this choice and increase the odds for the opposite one.
The main task of the bookmaker is the activity of existing customers and attracting other players. Bookmakers put a margin into the odds and change them if necessary. In the short run, you may be in the black, but in the long run, the vast majority will be in the red.
The bookmaker employs specialists from various fields: analysts, marketers, developers, lawyers, designers, technical support staff, security specialists, and others.
You can get a job in a bookmaker just like in any other organization: send a resume and have an interview.
How bookmakers work
The principle of the bookmaker’s office is to make a profit in any outcome of an event.
Some of the players will win and withdraw money, but the bookmaker will be in the black due to the margin.
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 odds in one market, n is the number of outcomes in this market.
For example, in a volleyball match between Dynamo Moscow and Zenit Kazan, BC analysts gave 40% for the hosts to win and 60% for the guests to win.
Convert the probability to coefficients using the formula:
100 / P, where P is the percentage probability.
Without margin, the odds will look like this:
2.50 to win Dynamo: 100/40 and 1.67 to win Zenit: 100/60.