I’ve often posted on how betting on sports is a three way street; and understanding all three ways will go a long way towards a few more winners and few less losers. There’s the odds maker, the bookmaker, and the player. I’ve discussed these relationships in the past, most notably, that it is player vs player (not player vs bookie) and the true costs of vigorish, and today I want to focus once again on the bookmaker’s perspective.
It is common knowledge that the book adjusts its line in hopes of maintaining equal action on both sides. This way the vigorish is an easy paycheck. But many of us know common sense is not always correct or the right sense. While smaller, independent neighborhood bookies might strive for equal action; this is not the case for larger pockets and big time houses.
Truthfully, it is almost mathematically impossible to get equal action on both sides, maybe close enough, but never equal. The esoteric know that sharp books or books reading the sharp players strive for certain amount of action on a game, not always equal action.
Let’s take a classic, simple example…for some a no brainer, for others perhaps enlightening.
For $11,000 worth of bets, equal action would have $5500 on each side. At -110 odds, the books pays one side $10,500 and keeps $500.
But this thread is about taking a position. One of the greatest bookmakers of all time has explained it differently.
So let’s say $6600 is bet on Seattle while $4400 comes in on San Francisco…all at -110. If Seattle wins, I keep $4400 and have to pay out $6000. I lost $1600.
If San Francisco wins, I keep $6600 and pay out $4000. I win $2600.
I, the book, basically have $1600 at risk to win $2600. On the same game, I have one team at about +163 while the public would have to risk $2860 for the same payout.
For sharp books (and those who can read their sharp players) with large pockets, worldwide, this is difference in risk vs. reward is how the sportsbooks can guarantee a long term profit in the marketplace they create.
Remember, bookmaking is not just a service, it’s a business. And while it is player vs. player from the bettor’s perspective, the bookmaker too exercises advantages over all his players.
Understanding the bookmaker’s perspective is sure to help you find a few more winners and can certainly take you off some losers.
Good Luck
