The Art of Setting The Odds
The main technique that bookies use to set the odds in their favor is the inclusion of Juice (Margin). This is how exactly the secret for the bookies to ensure the profit no matter the game results. Although bookies can’t foresee the results of sports events, they can dominate how much they can stand to win or lose on any particular outcome. Here we are going to explain the art of setting the odds for you to understand why setting the odds makes such a difference on the profit.
What does Vigorish/Juice/Margin mean?
It is the underlying percentage of commission set by the bookmakers for charging on any accepting wagers from their clients.
Even odds: (No Vigorish)
This implies 2.00 in decimal odds, +100 in American odds, and 1/1 in fractional odds. Let’s use teams A and B as example to explain 2 possible outcomes of a game. If there are 100 players betting with $100 each, half of them wagered on team A and another half on team B. In this case, the bookie would stand to make no money at all.
As you can find the instance above, the bookie took totally $10,000 from these 100 wagers, but he/she had to pay out $10,000 to the winning players no matter which result turned out. At the end, it made the bookie with no profit on this wager event which is definitely not a good scenario for the business.
It is necessary for the bookie business to build a portion of vigorish into the odds for making the profits. We will use an example to show you how this vigorish results at the end. In this case, we’d set up the Decimal odds to 1.8, -125 in American odds, and 4/5 in Fractional odds:
As a result, the bookie took $10,000 in total wagers and he/she had to pay out $9000 the winning players. This means the rest of the money ($1000) is the profit which was made by setting 10% of vigorish on odds. Now you can clearly see the change in odds has made such a great difference for guaranteeing your advantage on bookmaking.
These were just simple examples to illustrate how is the art of setting the odds. However, there will be more than two possible outcomes for the sports events in the betting markets and things could get more complicated than normal days. This is why partnered with the correct Pay Per Head company is necessary because our trained line managers are totally skilled with knowledge who can help you to set the odds accurately based on statistics and trends.