A bookmaker is the definite winner in a bet under normal circumstances and to keep the business going, they need to make bets which in able them to earn money every time they offer a wager. Bookmakers integrate a margin when they set the odds to ensure they earn on each bet and the probabilities are not the only basis.
1. A Coin Toss Example (Basing on a coin toss for £100.)
Every punter that takes part in the wager would either bet on heads or tails, and both get a 50/50 chance of winning and if a bookmaker pays out a £100 regardless of who wins, it will leave him with no earning. In order for them to earn profits on each bet they offer, the bookie has to lower the prize.
So, instead of the £100 payout, the bookie will have to offer £90 while two punters still wages for £100 and by collecting £100 from one punter and paying out the £90 of the amount to the other punter, he gets £10 as his commission.
2. Beating the Margin
Picking 5 winners out of 10 when each pay the fair odds of 2.00 without any bookmaker commission is breakeven but receiving the standard bookmaker odds of 1.90 with the 0.10 commission off of the fair odds of 2.00 would make you lose 5% on total investment.
In other words, you get a return of 10 when picking 5 winners at 2.00 or without a bookie and only get a return of 9.5 with the standard bookmaker commission. This is what people refer to as “beating the bookmaker,” or generating success in long-term betting.
3. Betting without a Bookie
Betfair and Betdaq or betting exchange indicates how much a bet is worth since users only wage against their fellow users and since the market is driven by supply and demand alone, the result of the odds are better compared to wagering with the bookmakers.
Yet, betting exchange charges 2-5% commission on winning bets which makes the prices more attractive. The commission and the bookmaker’s margin are not that different, but the bookies create bigger margin than 5% which makes betting exchange a better option for punters.
Whether you are a pro or a beginner, it is important to know all types of betting options and understand the odds before placing a bet. Knowing how bookmakers do business will help you have wise betting decisions as well.Keep in mind that bookmakers set the odds to their advantage and however the game turns out, they are sure winners.
To stay on a safe ground, be knowledgeable about the world of sports betting and know where you place your money. Luck, wisdom, and thorough preparation play important roles in the world of gambling. Knowing how to incorporate the three factors in wagering will either win you the loot or allow you to have a fair play. Keep in mind to enjoy the game most of all since betting just adds the excitement and anticipation in the field.