How Sports Betting Works
Sports betting is the act of placing a wager on the outcome of a sporting event. For beginners, understanding the fundamentals is crucial to making informed bets and improving your chances of success. Here, we will cover four key aspects: the juice/vig, shopping for the best odds, profit margin, and understanding risk.
Sports Betting 101: Strategy Tips & Advice >>
How Sports Betting Works
The Juice/Vig
The juice, or vig, is the bookmaker’s commission on a bet. It's how sportsbooks make money, regardless of the outcome of the event. For example, if you see odds of -110 on both sides of a bet, the extra $10 on a $100 bet represents the juice. This means you need to bet $110 to win $100, with the $10 difference being the bookmaker’s profit.
Shopping for Best Odds
Odds can vary between different sportsbooks. Shopping for the best odds means comparing the odds offered by various bookmakers to find the most favorable ones. This practice can significantly increase your potential winnings over time. Having accounts with multiple sportsbooks is essential to take advantage of the best available odds for each bet you place.
Profit Margin
Understanding the concept of profit margin in sports betting is critical. The profit margin is the percentage that represents the bookmaker's expected profit. It is embedded in the odds they offer. For instance, if a bookmaker offers odds that equate to a 52.4% implied probability, but the actual probability of the event happening is 50%, the bookmaker has built in a 2.4% profit margin. This margin is crucial for bettors to consider, as it impacts the value of the bets placed.
Understanding Risk
Risk management is a fundamental part of sports betting. It’s important to only bet money you can afford to lose and to employ strategies that help manage your bankroll effectively. One common approach is to only wager a small percentage of your total bankroll on any single bet. Understanding the inherent risks in sports betting helps prevent significant losses and ensures a more sustainable betting experience.
By understanding these core principles, you can approach sports betting with a more strategic and informed mindset, increasing your chances of making profitable bets.
Check out all of our articles on sports betting strategy & advice >>