In an ideal world, bookmakers would like to see the same amount of money (risk) on both sides of a bet outcome. However, utopia is virtually unknown in the world of bookmaking and firms are rarely able to equalise their level of risk on both sides.
Therefore, you will often see a bookmaker adjusting his odds for an event over time. This fluidity aims to achieve an acceptable money line on both sides of the bet outcome.
Please note! Because it is rarely possible to “equalise” the risk on both sides, bookmakers instead look for an “acceptable” level of risk. This is the only ‘gamble’ bookmakers take.
How do Bookies Manage their Risk?
You will have certainly noticed the plethora of various betting offers used by the bookmakers to woo their customers. Unsurprisingly, these are the bets where they expect to make the highest profits (for example, pushing accumulator bets with offers such as, “If team A (usually a short priced favourite) is the one which lets down your five fold, we will return your stake!”) (how generous of them!!).
Bookmakers apply all kinds of marketing tricks to divert the sports bettor into a direction which is most profitable; for them but not for the bettors!
I risk repeating myself but the truth is that bookies’ odds never aim to predict an outcome of a match with utmost accuracy (therefore the calculated probabilities of ‘true’ odds often do not match the betting odds offered in the market). A bookmaker’s main goal is to balance the books and to do this, public opinion is taken into account.
This is the key to bookmaking success. This is the key to sports betting success.
Of course, each sport is different, but in the end bookmaking methods are always the same. Bookmakers make money with these same methods, regardless of the sport or other type of betting event.
- Their books are not perfect.
- They do not have a crystal ball.
- Bookmakers have a business plan!
The bookmakers’ mantra is very simple:
Calculate the statistical chances of the matches for a weekend and set the odds by taking into account the probabilities and public opinion. Collect enough money to pay off losing bets. Keep the profit.
Learn from the Bookmakers!
Bookmakers are not able to balance their books for each single game. To them, it is always about “acceptable” amounts of money (profits or losses) and spreading risk.
The goal of bookmakers is not to predict the outcome of a game correctly. This means that their odds often do not reflect the expected probability distribution.
Bookmakers’ odds usually reflect public opinion about a match and their primary objective is to ensure a well balanced book.
If you wish to become successful with any form of betting you must understand the way of thinking (the business plan) of the bookmakers.
Why? Because these firms survive and thrive from the money they encourage you to lose through nothing more than your own ignorance of how their ‘system’ works.