Contrary to popular belief, 58% of American adults reflect fondly on their math classes. This makes sense considering that people can reap the benefits of math in most industries they choose to go into. Gambling is no exception.
But why is math important in sports betting?
If you’re starting or growing a bookie business, it’s important that you answer this question. Read on to learn how you can use mathematical calculations and statistics to grow your sportsbook.
Why Is Math Important in Gambling?
Math has been important for strategic gambling since the 16th century. Gerolamo Cardano wrote a manual to outline the different possibilities for mathematical gambling outcomes. This was the beginning of the theory of probability.
Probability is a mathematical concept that outlines the possible outcomes of different actions. This is important in gambling because players need to know and analyze the potential outcomes of a game. They can then make more informed choices about how to mitigate their gambling risk.
How Can You Use Math to Set Odds?
Bookies can also use math and probability to set odds that favor their sportsbook. You must look into past data about teams, players, and events. You can then use division and fractions to project the likelihood of different event outcomes.
Take these various projected odds and publicly compare them to each other. This will let people place bets on those projected to win.
However, you need to balance these custom odds with different levels of payout. Underdogs can have bigger jackpots than favored teams.
For example, if a team only has a 10% chance of winning, you can offer 60% of the bet in winnings ($160 back on a $100 bet). However, if they have a 90% chance of winning, only offer 5% back ($105 on a $100 bet).
This will ensure that you don’t lose too much money when people bet on a favored team. If they win, you’ll still make money off the vigorish. If they lose, you’ll need to pay more money per person, but to fewer people.
Math and the Vigorish
The vigorish is the cut of a bet that the bookie takes and keeps regardless of betting outcomes. It’s important because it is the way that bookmakers ensure consistently profitable sportsbooks. Even winning bets still give you a vigorish.
Calculating the vigorish is another important way that bookies use math to make money. The vig calculation is:
1-(1/overround) * 100
A 10% vig is fairly standard, but some bookies choose to take more or less. It depends on how large your budget is and what growth stage your sportsbook is in.
Set Up an Online Bookmaking Site Today
So, why is math important as a bookie? There are tons of answers to this question, but the bottom line of them all is that math makes you a lot more money.
Now that you know the importance of math in gambling, it’s time to open up an online sportsbook. Ace Per Head offers fully-managed pay per head bookie services to budding bookmakers.
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