Have you ever wondered what is the impact of the margin that a bookmaker imposes on the odds on the bets you place? We will try to answer and dispel your doubts about the margin.
What is bookmakers margin
The margin imposed on the odds is the same as the spread on the stock market. The bookmaker’s main earnings are the margin. For example, if we assume that the margin is 0%, then in the case of a meeting between two teams with the same potential in a two-way bet, the odds would be spread 50/50. So, as you can easily guess, the odds would be 2.00 vs 2.00. But, of course, a bookmaker is not a charitable institution and the margin is always there. It is only absent at betting exchanges, but there is a commission in its place, for one thing.
Is there a margin in the casino too
Let us compare sports betting to a casino. Let’s take roulette as an example. In the European variety of roulette, the advantage and theoretical profit of the casino is 0. In the American variety, it is two 0s. This can be considered the equivalent of the margin the bookmaker places on the odds. And similar to sports bettors who choose high odds to increase their chances, casino players are more likely to choose European roulette because they clearly have a better chance of winning than in the American variety with two 0s. Roulette is a case in point. Other casino games could just as well be taken as examples, but that is not the point. The aim is to present the general scheme of how it works and that it is not specific only to sports betting.
Low and high margin bookmakers
Bookmakers divide themselves into high-margin and low-margin. The former are aimed at recreational gamblers for whom odds are not important. The latter are aimed at all players who take their bets seriously. You will find the largest number of bookmakers with high odds and exchanges with low commissions at sports betting broker.
How betting brokers work
The broker is the intermediary between the player and the bookmaker. It usually uses external software that aggregates markets from a number of usually Asian sports markets. This allows the player to access multiple markets from a single account. Brokers only work with reputable low-margin bookmakers such as Pinnacle. At the moment there are only a few reputable brokers on the market, a very small number compared to the hundreds or thousands of online bookmakers. However, it is due to the target market. The market of professional players is much smaller than recreational players looking for bonuses and promotions. Thus, it can be considered that the service of Asian brokers is a niche product. However, there is nothing to prevent novice players from using sports betting brokers.
Why do I need high odds
The answer is extremely simple. To win more. Think about the fact that with high odds you win more on every bet. With each successive bet, the difference gets bigger and bigger. That is, the longer you play, the difference in total winnings gets bigger and bigger. In the other direction, with any losses, they decrease. High odds also allow you to place arbitrage bets, i.e. risk-free bets. Although the profit is not great, it is certain and stable. With low odds, it would not be possible to find an arbitrage bet. In conclusion, high odds are what any sensible gambler should look out for when choosing the right betting site.
