Any bookmaker works for profit. Contrary to popular opinion, the bookmaker’s income depends not only on the number of bets lost by the people but also on how correctly the odds were set. To set the odds correctly means that even with the most sensational outcome of the match, the bookmaker will still remain in the black.
The Formation Of Coefficients
First, analysts calculate the odds of their rivals using betting software. There are quite a few ways and variants of the matched betting software, which are divided into analytical and heuristic. Analytical are statistics and mathematics (probability theory), the basis of heuristic methods is the opinion of experts and the best betting software. From the comparison of the results, the probability of a particular outcome is derived and guaranteed mostly by online betting software.
This is usually called “fair odds”, but you will never see these coefficients in the bet line, otherwise the bookmaker will not have a profit. The sum of the probabilities is, oddly enough, not 100, but 115 percent, and the difference of 15 percent is the profit of the bookmaker office, which is called the “margin”. This margin is laid in the coefficients. Sports betting software uses this data. That is why the best sport betting software calculates all the nuances of sportsbook betting.
If the victory is obtained by the favorite team, which logically happens much more often, the bookmaker bears a loss. After hundreds of matches, the conditional profit of the bookmaker office amounts to tens of hundreds of thousands; however, it is also a great risk. However, the defeats of favorites, which in this situation bring profit to bookmakers, will not be distributed evenly.
It is likely that a situation will arise that in all matches the victory will be for the favorite, and the losses of the bookmaker office will be at least one third for every million dollars set by the players! For business, this is an unacceptable situation, so the bookmaker must exclude even the theoretical occurrence of such a situation. Betinvest offers sportsbook software that will help you to make profit even as a bookie newbie.
For this, it artificially lowers the odds on the favorite team. The bookmaker cannot know in advance the exact distribution of rates. However, it is precisely known that the majority of players will bet on the favorite, and therefore, in order to insure themselves, the office will overestimate the probability of victory of the clear favorite. There are two possible situations: either it will have to overestimate in such a way that it is in percentage terms higher than shares of bets on the favorite team, or in such a way that it will be lower.
With any outcome, bookmaker gets guaranteed profit! For bookmakers, it is better to overestimate than underestimate the favorite. And this is done not even on the basis of the real chances of the favorite but depending on the distribution of the coefficients, formed by bets on the event. And players, as you know, are more likely to put on favorites.
In practice, it is impossible to calculate either the real odds or the distribution of funds between players – the error always exists. Therefore, bookmakers initially underestimate the odds on the favorite to guarantee a profit. In other words, they add 15-20 percent to the probability of a favorite winning.
Based on the distribution of the betting amounts, the bookmaker changes the odds to achieve the highest possible profit. Betinvest knows how it works – use our knowledge to get into this business.
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