Bookmakers are the professionals that provide a platform for punters to bet upon the game. They have a betting system against which the punters place the bet. The odds are set at the start of the matches and the bettors place the bet in favor of or against the odds. Thus, tweaking some changes in the betting system is one of the techniques with which the bookmakers make a lot of money.
How house advantage helps bookmakers make money?
Bookmakers have a control over the odds. They study the aspects of the match. Whether the players have a lot in stake or is it just a formality to play is a question that decides the importance of match. The bookmakers sometimes change the odd and keep a portion of odd size as a house advantage. This allows them to win majority of time the bet is placed.
Can bookmakers make money from combo bets?
The bookmakers win a lot many times through accumulator bets. In an accumulator bet, a number of matches from various sports are clubbed together. The bettor has to ensure winning each and every bet in the accumulator bet. It is quite a risky thing to do. However, the outputs are kept quite high and investments very small. It prompts the punters to take a chance and try their luck. This tendency to get drawn to good profits work in the favor of the bookmakers and they make good money from the combo bets or accumulator bets.
What are the various sources of money for a bookmaker?
Bookies or bookmakers are thriving for a reason. They have an edge over the punters who register themselves with the bookies. The bookies earn money when the punters lose. Thus, there are a few ways from where the bookies earn the money.
- Deposit: All the punters are required to make a deposit to start a relationship with the bookie. The deposits collected act as a pooled money. The bookies can invest this surplus money and grow it. They pay back a portion of it in the form of winnings.
- Betting fee: For every bet placed, the punters are charged a certain amount of fee. This fee is a big source of income for the bookies as the people place bet in large numbers.
- Commission: It is also known as a juice or ‘vig’. The vig is included in the odds that bookies set. The odds are changed to a bit higher figure to create the earning opportunity. For example, in a coin toss, the chances of heads and tails coming as a result are 100%. The bookies set the chance at a figure higher than the 100%, say 110%. Thus, this 10% margin is their juice and offers them good income.
- Odd compilers: Setting the odd is known as pricing the market. The odds are determined keeping several factors in mind. The current form, the motivation level, past meetings’ outcomes, control over the match, technical superiority are several factors that help compile the odd. At times, when the teams are quite similar in the capacity and performance, the margin goes more than 100%, say it can go 105%, hypothetically speaking. Thus, 5% margin from odd compiling becomes the source of income for the bookmakers.
- Setting odds a bit low: In case of football matches predictions where the chances of a team winning the match are high, the odds in its favor are placed bit low. It helps the bookies save on the payout amount as the liability is reduced.
What is balancing the book and its role in making money for the bookmaker?
In the process of book balancing, a margin of roughly 5% is kept as a target. Let’s take an example of team A and team B. $6000 is placed on team A and $4000 are placed on team B. Bookmaker has collected a total of $10,000. With the help of odds compilation process, the odds are reduced and the bookmakers are made liable to pay $500 less or earn 5% margin. If the team A wins, the payout will be $9540 where $460 is the bookmaker profit and in case of team B winning the match, payout is $9520 and $480 is the bookmaker profit. It is called balancing the book and the bookmaker makes money no matter which side wins the match.
How spread betting helps bookmakers make money?
Spread betting became possible with the use of internet in sports betting. In spread betting, the fixed score is not bet upon but a range. For example, the spread is kept at 3.1 to 3.3. The bettor will buy the odd at 3.3 if he thinks there will be more than 3.3 goals. And the one who thinks there will be less than 3.1 goals chooses to sell at 3.1. The difference between the stake and the payout becomes the income for the bookmaker.
How does lay off account helps bookmakers build profit?
With the layoff account, the bookies make profit consistently. The bookies charge a commission on placing the bet. It is charged irrespective of the bet placed. With a layoff account, the risk is reduced.
In a bet where staking on one side is about $5000, the bookie will make $500 as the fee. Now, if only $2500 are wagered upon, the bookie faces spread deficit. This deficit is allowed to cover by placing $2500 from the layoff account. If the side that attracts $5000 wins, the layoff account money is used to pay the winning amount. In case of negative result, $2500 wagered goes to the layoff account. Thus, the bookie spreads risk and make money from the bets placed.
To conclude,
Bookmakers have to make money to survive the business. They use different means to make money from bettors. Soccertipsters.net has the tipsters that understand the bookmaking business. They provide tips while keeping the bookmaker margin in consideration. Thus, their hit rate is high and they deliver you profits most of the times you choose to take their advice.