Archive for the ‘horse racing’ Category

Sports Betting Bankroll Management

It is profitable to make money from online sports betting, but a lot of this depends on how well you utilise your bankroll and limit your financial exposure. It’s just like financial trading really, even if you “feel” a certain stock is going to rise by the end of the day, you have to limit how much you invest. You cannot be risking what you cannot afford to lose. Hence why in poker bankroll management professional players will only risk 5% or less of their total bankroll in each game.

In sports betting, you have to realize that just because you think a team will win or lose, it doesn’t mean you can afford to risk half of your entire bankroll. Sports betting and financial speculating do not work like that. Earning money through sports betting is a marathon – it is a bit like the football teams winning the English Premier League. You don’t make your profit by betting large amounts on high odds, you do it by grinding out results over the season and getting more bets right than you did wrong.

A general rule in sports betting is to only wager 1%-3% of your entire bankroll at a time. This means that if you have a maximum bankroll (the amount that you’re prepared to commit and lose) of $1,000, then you only be staking a maximum of $30 at a time. This is very important.

Professional NFL punters, who make money from betting on the NFL, only have a win-rate or margin of 50-56% on average. This means that they’ll predict just over half of the matches that they bet on correctly. Over the course of a season, if you bet too much per game, and lose a few games in a row (which is entirely possible), then you will end up risking a huge portion of your bankroll and you might not be able to recover from it.

Depending on your insight and knowledge about a particular game, alone with your recent winnings, you can vary how much you wager. If you are very confident of the end result and you have a very strong feeling about something then you can afford to risk the higher end of your bankroll (up to 3%). On the other hand, if you’re not entirely confident or betting on a team which you don’t know much about or that has played very inconsistently in the past (or there’s a lack of heads up information) then you should only part with 1% of your bankroll.

Generally, sports betting bankroll management isn’t hard or difficult to understand. What is hard however is to actually execute this theory and discipline yourself to limiting how much you wager with. Any sports betting fan can get over confident and start wagering silly amounts (e.g. 10% of their bankroll), only to lose a lot of money and have taken 2 steps forward 10 steps backwards. Stick to a plan, stay disciplined, don’t get emotionally involved and make smart wagers – that’s the key to successful online sports betting.

The origin of parimutuel

A very popular form of sports betting is the so-called parimutuel format, from the French expression “pari mutuel” which means a common bet.

Unlike other sports venues where the bookmaker is in charge of offering odds for various types of bets, hedging his risk with a spread called the “vigorish” (vig in short), parimutuel does not involve a bookmaker.

And unlike fixed-odds betting where you know exactly how much you will make if you win your bet, as this was determined when you placed the bet with the bookmaker, in parimutuel it is only after all bets are closed that the odds are known. As the bets are pooled together and after taxes and a house vig are deducted, the relative amounts bets on each outcome determine the payouts.

Parimutuel was invented in France in 1867 by Joseph Oller.  Initially considered illegal gambling by the French Government, it is only in 1891 that parimutuel became the official form of horse race betting in France, rapidly spreading to numerous horse racing venues all over the world. As it was thought that without a bookmaker able to manipulate the odds, the system was fairer.

The bookmaker Joseph Oller was a very inventive man and even though he has not benefited from his creation in sports betting, he was forced to seek other business ventures in which he became very successful: impresario. Oller opened numerous auditoriums and venues in Paris, of which the most famous are the music-hall Paris Olympia and the famous Moulin Rouge.

Parimutuel is the state-regulated form of  sports betting in many countries such as France, and it is interesting to see how the legal system has found a way to collect taxes by authorizing one form of sports betting and banning another.

The French have invented many things and another one is the more recent form of parimutuel, where the betting consists in finding the first 3, 4 or more horses crossing the finish line.

The tiercé was created in 1954 by André Carrus, who was the directeur of PMU, Pari Mutuel Urbain, the company managing the French horse race betting. The goal was to find the three fastest horses (tierce stands for three) in the right order or in disorder. Later came out the Quarté for four horses and the Quinté + for five.

Tiercé took France by storm and to this day there is no village in the hexagone where the elders do not talk about their bets on Sunday morning at the village café. This also spread out all over the world.

To me, people who are trying to ban sports betting are idiots who do not understand that people like to make bets. Regulate it, do not make it a crime.