Bookmakers have the lowest margins. Bookmaker margin: what is it and how to calculate it? Example of bookmaker margin

Percentage, share, commission, margin, penalty - these are variations of the name of the deductions that the bookmaker receives depending on the odds set. Each office has a margin, since it is its main income.

The size of the commission (margin) in individual offices may differ - it all depends on the bookmaker’s model, the amount of money bet and some other factors. Sometimes you can find an offer for improved quotes - for individual events or for express bets.

So what is bookmaker margin anyway? How to calculate it? How will the commission size affect your profit? We will try to find the answer to all these questions in this article.

What is bookmaker's margin?

Some people think that bookmakers themselves take risks when they set odds. You can always find phrases like:

Oh, lol, Real lost, the beeches are upset, they probably went bankrupt.”

But it is not so.

It is clear that bookmakers set the baseline (odds) after analyzing all the main factors (strength of teams/athletes, form, motivation, etc.). But over time, depending on the news related to the event and the amount of money that the players bet, the quotes are adjusted.

The bookmaker's task is to ensure that players bet on opposite results (P1, X, P2) in proportion to the odds.

Simply put, if there are odds of 1.90-1.90 in a tennis match, then the ideal situation for the bookmaker is if the same amount is bet on both outcomes. If the odds are 1.2-4.0, then it would be ideal for the bookmaker if players bet $1,000 on 1.2 and $300 on 4.0. Why? 1.2*1000=1200. 4*3=1200.

How does the bookmaker make money from all this?

Due to the margin. You noticed that with equal chances for tennis players, we gave as an example a combination of odds of 1.90-1.90, and not 2.0-2.0. Margin is understood as the percentage of a bank placed on a specific market.

The size of the commission can decrease or increase within even 1 day - it all depends on the bookmaker’s profit on the market. It is very difficult for the office to achieve an ideal distribution of funds in all markets. Therefore, sometimes the margin is artificially increased.

What is a fair market?

A fair or fair market is one in which there is no bookmaker's margin. As an example, it is best to cite a match or event in which the teams/athletes have equal chances of winning. That is, they estimate it to be 50-50%.

Let's not go deeper into sports, but use the usual coin toss as an example. The statistical chance of getting each side (heads or tails) is 50%. If a bookmaker without a margin accepted a bet on this event, the odds would look like this:

Eagle -2.0;
Tails – 2.0.

That is, if you correctly predicted which side the coin would land on, you would double your bet.

But you will not see odds of 2.0-2.0 for an equally probable outcome in any bookmaker. The maximum is 1.99-1.99 (you can hardly find this anywhere).

Sometimes you can stumble upon 1.97-1.97 or 1.98-1.98. It is very rare that equiprobable odds are offered even in the range of 1.94-1.96. Good indicator is already considered 1.90-1.90. But much more often, companies even offer 1.85-1.85.

That is, instead of increasing your winnings by 2 times, you increase it only by 185% . And the mathematical expectation of your bets is negative. This is where the bookmaker makes its money.

Calculation of bookmaker margin

Now that we know what a fair market is and what a margin is, we can move on to the actual calculations. This is a fairly simple process. Experienced players can determine the margin “by eye”, simply by looking at the odds, and without making any calculations.

To calculate margin, it is convenient to convert odds into percentage probability. To do this, you need to divide one by your quote. For example, if the coefficient is 1.65, then the percentage probability will be 1/1.65=0.606 or 60.6%.

Let's give an example. Let's take a football match with the following odds:

P1 – 2.00;
X – 3.5;
P2 – 3.9.

Now let's convert them into probabilities:

P1: 1/2.00 = 0.5 or 50%;
X: 1/3.5 = 0.286 or 28.6%;
P2:1/3.9=0.256 or 25.6%.

Market margin: 50+28.6+25.6=104.2%. Now let’s calculate the average margin for each bet on this market:

Margin = (1-(1/market margin))*100=(1-(1/1.042))*100=(1-0.96)*100=4%.

The average margin in the market is 4%. This means that for every $100 you bet, you will “give” $4 to the bookmaker. For equally probable opposite outcomes at 4%, the odds will be 1.92-1.92.

How does the bookmaker's margin affect a player's profit?

A difference of even a few percent in the bookmaker’s margin can significantly affect a player’s profit. We have compiled a visual table in which we compared the potential profit from bets at different margin indicators. To do this, we simulated a situation in which we made 1000 bets on equally probable markets (where the probability is 50% to 50%). Here's what we got:

We see how much the margin affects the player’s profit. For example, if the average margin is 2.5% and the bettor maintains a pass rate of 55%, then the ROI will be 7.25%. And if the margin is 5%, then the ROI will drop to 4.5%. 4.5/7.25=0.62 or 62%.

This means that you will lose about 38% of your profit just because of the bookmaker's margin. Instead of $1000 at a distance, your profit will be $620. Together 500 dollars is a total of 310.

This is how some 2.5% margin can affect a player’s profit. This is why it is so important to bet at high odds. IN otherwise you risk significantly reducing your efficiency and profitability at a distance.

How to bet on low margin odds?

On the most popular exchange in the world (Betfair), players pay about 6.5% commission on winnings. On exchanges like Smarkets and Matcbook the commission does not exceed 3%.

But betting on the stock exchange has its own nuances. There are illiquid markets where there is almost no activity. Quotes may be lowered by speculators or bots. The bet may be partially accepted and so on.

There is another solution - to use programs and services that monitor odds. With their help, you will always know which company has the most attractive offer on the market. Subscription to such services is paid, but it costs little (a few dollars per month). True, you also need to have deposits in several offices in order to place bets this way.

Bookmaker's margin: let's summarize

Margin is a bookmaker’s universal tool for making money. This is what makes the bookmaking business so profitable. In this article, we have clearly shown how just a few percent of the commission can affect the profitability of players. Keep this in mind - otherwise you may lose your hard-earned money.

Both beginners and experienced bettors are united by a common goal: to place bets on the most favorable terms for making money. First of all, this applies to high quotes, since the size of the winnings depends on their value. All bookmakers offer different odds. This article is about why this happens.

The bookmaker's margin is the commission that the office puts into the quotes, thanks to which it makes money, regardless of the outcome of the event. The lower the margin, the higher the odds. To make it easier to understand what this is, let's give an example of margin.

Example of bookmaker margin

For example, let’s take equivalent outcomes, that is, those whose probability is 50%. Let's say the total is over or under in basketball. The bookmaker sets the main value and offers to predict the number of points in the match. Without margin, the quotes would have a value of 2.00-2.00, but each of the options is valued at a coefficient of 1.90.

Let's say you bet $100. on TM (218.5), and your friend - the same amount on TB (218.5). The office accepted 200 USD for the event. However, whichever of you wins, the payment will be 190 USD. Missing 10 USD went to the bookmaker. This is the margin. With odds of 2.00, you would earn $200, but then the bookmaker would not make a profit.

Impact of margin on rates

The higher the margin, the higher percentage the passability of bets is required from the player. Let us recall the equivalent outcomes from the example above. Fair value quotes should be 2.00-2.00. In this case, in order not to go into the red, it is enough to make 50 correct predictions out of 100.

However, with a margin of 5%, which corresponds to quotes of 1.90-1.90, you will have to make 53 correct bets out of 100 to stay with your money. It turns out that you need to increase the percentage of traffic, but the profit remains the same.

How to calculate margin?

The probability of all outcomes, regardless of their number, is 100%. Let's look at an example of calculating margin on football match Stoke City - Huddersfield.

Let's convert the coefficients into probability, which is expressed as a percentage. We divide 100 by the value of the quotes:

P1: 100 / 2.02 = 49.50;
draw: 100 / 3.32 = 30.12;
P2: 100 / 4.11 = 24.33.

Summarizes the percentage probability of outcomes:

49.50+30.12+24.33=103.95%.

Subtract 100% from the result obtained:

103.95-100=3.95.

The margin on this market is 3.95%.

The importance of bookmaker margin

As a rule, novice players do not delve into the terms. It is difficult for beginners to determine the margin, especially if the event has three outcomes. A professional bettor must look for the most profitable terms for bets, rather than giving part of the profits to bookmakers. It is especially important to consider margin when using some financial strategies.

At first glance, the difference between 1.88 and 1.93 is insignificant, however, over a distance, it will be noticeable. Therefore, choosing a bookmaker is an important component successful game. Choose low-margin companies. They offer the most high odds. Usually these are popular companies that have a huge number of players (BC “1xBet”, “Marathon” and others).

Bookmaker 1xStavka gives 4,000 rubles for registration.

When choosing a bookmaker to place your bets on, pay particular attention to the margin included in each line odd. All experienced bettors, without exception, hold this opinion, which cannot be said about beginners who do not even know about the existence of this term, much less about its importance. In this article we will try to describe in detail what margin is and why it is so important when choosing a bookmaker.

What is "margin"?

The term “margin” itself has been used for many decades in financial activities, from where he moved into the gambling industry. Margin– this is the difference between price and cost, that is, profit. Everyone understands that the main task any bookmaker's office generates profit for its owners. If a bookmaker set odds according to the exact probability of a given outcome, then the bookmaker's days were numbered. In such companies they work far from foolish people who will not rely on chance, but will foresee everything in advance.

It is precisely for their guaranteed profit that they use margin, that is, they lower the coefficient from the actual indicator of the probability of the outcome. At different bookmakers, this reduction (“margin”) may vary and range from 1% to 20%.

Example of "bookmaker's margin"

Regularly, any bookmaker draws up lines for a particular sporting event, which displays the probability expressed in odds.

Using an example, consider the Spanish La Liga match between Barcelona and Alaves. The chances of teams in the line are estimated as a percentage of 50-30-20. That is, there is a 50% chance that Barcelona will win, a 30% chance that there will be a draw and a 20% chance that Alaves will win.

In the coefficient ratio it should look like this: 2 - 3.33 – 5. To calculate, 1 is divided by the approximate percentage of the probability of the outcome. However, such a percentage will not bring any profit to the bookmaker. Therefore, the coefficient includes margin bookmaker's office about 15%. That is, in reality, the bookmakers’ percentage breakdown will look like this: 57.5% - 34.5% - 23% = 115%. And it will be reflected in the line with the following coefficients: 1.74 - 2.90 - 4.35.

Now let's look specifically in monetary terms. Let's say people bet $12,000 - $9,000 - $6,000.

Now let’s calculate what risks the bookmaker takes on.

When Barcelona wins the bookmaker needs to pay 12,000 x 0.74 = $8880, and the bookmaker receives from players who bet on a draw or victory for Alaves: 9000 + 6000 = $15,000. Net profit will be $6120.

If there is a draw in the match the bookmaker needs to pay 9,000 x 1.9 = $17,100, and the bookmaker receives from players who bet on the victory of one of the teams: 12,000 + 6,000 = $18,000. Net profit will be $900.

With Alaves winning the bookmaker needs to pay 6000x3.35=$20,100, and the bookmaker receives from players who bet on a draw or victory for Barcelona: 12,000 + 9,000=$21,000. The net profit will also be $900.

Thus, we can conclude that in any case the bookmaker remains profitable.

Why does each bookmaker have different margins?

Every bookmaker uses margin, since no one will work without profit. There are cases when the office does not contribute a margin to the odds, but takes a percentage of the bets themselves. Many betting sites change the margin percentage depending on the event. So what does its percentage depend on?

Number of clients. In most cases, the margin percentage often depends on the number of clients and accordingly cash flow. Top bookmakers, which have millions of customers and bets of thousands of dollars, have no reason to invest a huge margin in the odds. They have a small percentage of profits, but from many millions of customers.
Greed. Many bookmakers simply take advantage of the lack of knowledge of beginners and set extortionate margins. Unlike top firms, they have tens of times fewer clients.

Which bookmaker is better to choose?

Any experienced bettor has accounts in many bookmakers at once, since for each event you can choose the option with the smallest margin, that is, with best odds. It is best for a beginner to start with proven giants such as Bet365 or William Hill, which have millions of players around the world, which means small margins.

The bookmaker's margin is the commission that is included in each odds, thanks to which the office earns money. How less value margin, the higher the odds. And vice versa.

Let's look at specific examples concept and find out how to calculate the margin. Many people don't understand how it works. You bet 1000 rubles on odds 1.9 and receive a payout of 1900. Where is the bookmaker’s commission?

The bookmaker's margin is included in the odds.

Let's consider an example of equally probable outcomes - 50 to 50. This is even or odd in basketball and other sports where it is impossible to predict the exact score.

BC Liga Stavok set 1.9 for each option. But if the odds are the same, the quotes should be 2.0. Imagine that you bet 1000 rubles on even, and your friend bet the same amount on odd.

The office accepted 2000 rubles. One person will be the winner and will receive, attention, 1900 rubles. 100 rubles that evaporated is the margin in the bookmaker.

Bookmaker margin calculation

The sum of the probability of all outcomes, be it two, three or more, is one hundred percent. Let’s look at an example from the Anzhi – Rostov match.

The value of the quotes is an estimate of the chances as a percentage. Let's convert the odds to percentage probability. To do this, divide 100 by the coefficient:

P1: 100 / 2.92 = 34.24%;
X: 100 / 2.85 = 35.08%
P2: 100 / 2.80 = 35.71%.

Sums up the percentages:

34,24+35,08+35,71=105,03%.

Now subtracts 100% from the resulting value:

105,03-100=5,03.

The margin of BC League Betting on the main outcome of the given RFPL match is 5.03%, which is quite acceptable.

22.11.2017

It's no secret that bookmakers always win, regardless of the circumstances. The thing is that the office includes a certain percentage of its profit (margin) in any coefficient. The company's margin is directly reflected in the amount of return from bets.

Of course, the margin is constantly different. This can be explained by the fact that the share of foreign exchange compensation depends on the importance of the event in sports and, of course, the policy of the bookmaker company itself. For events that are not very popular, bookmakers often underestimate the margin percentage, thereby attracting novice players to place more and more bets, since bets are their percentage, their benefit, their income.

Legal bookmakers with the lowest margins

Margin calculation rules

Many beginners are accustomed to thinking that bookmakers create odds based solely on their personal perceptions. Of course, there is some truth in this, of course. However, we need to look even deeper.

Employees of bookmaker companies can accurately predict the winner of a particular event, which is due to their vast experience. However, a low coefficient does not mean that the event is a sure thing. If all the favorites won, then bookmaker companies simply would not exist. When setting odds for a certain event, bookmaker companies first of all think about how to motivate players to bet on one team or another.

For this reason, they need to manipulate the numbers by offering the most tempting odds in order to attract new players. However, you should always remember that each odd includes the bookmaker’s margin. By adding a certain percentage to the probability, the bookmaker company guarantees its income.

Note that what more people and, accordingly, the bets, the greater the commission. Of course, it is quite difficult to find a balance between bets on all victories and defeats, which is why bookmaker companies offer a huge list that allows you to earn extra money.

Equal Opportunity Market

This concept assumes that the bookmaker selects opponents whose chances of winning are fairly equal. To understand we will use famous example with a coin. The odds of getting heads or tails are absolutely equal: 50/50. If the bookmaker accepted bets on a coin toss and did not include his commission, then we would have odds of 2.00 on heads and 2.00 on tails.

IN real world such miracles do not happen, since bookmakers include their own commission in each odd. Therefore, even odds odds will vary from 1.80 to 1.95. Therefore, when choosing a company, you should pay special attention to what percentage of margin a particular bookmaker puts into the odds. Importance this fact The point is that at a distance a difference of even 0.1 has a big impact.

Margin calculation rules

A market that has 100% equal odds is a worthless market. If the market odds are estimated at less than 100%, then it can be indicated that the value of the bet is increasing. It’s another matter if the market is more than 100%, which happens much more often. The value of the bets, in this case, is lower. Determining the value of the market, as well as the bookmaker's margin, is quite easy. To do this, you first need to determine the probability of each outcome as a percentage, and then use a simple formula.

Formula to calculate margin:

(1 - (1/market percent)) * 100

Let's give an example. R. Nadal - P. Cuevas. Tennis coefficient. ATP tournament. Paris. France. Indoor Hard. The odds for the Spaniard to win are 1.02. Converting to probability, we get 98%. The Uruguayan's victory is estimated at odds of 13.50. Accordingly, the probability of Cuevas' triumph is 7.4%. It turns out that the market percentage for the given event is 105.4%.

We calculate the margin:

(1 - (1 / 1.054)) * 100 = 6%

Search for markets with minimum margins

Many novice, inexperienced bettors, as a rule, do not attach any importance to the margin, considering it not such a significant indicator. Real pros first look for Value, and only then place bets.

Note that arbers are especially successful in this because they earn income by finding outcomes with the smallest margin. As a rule, bookmakers do not like such players and quickly block their accounts. However, there are a number of companies that are quite loyal to such players. It should be said that the success of such cappers lies in the fact that they are excellent at finding events with the smallest margin.

As noted above, even a minimal difference in odds plays a huge role. Therefore, it is very important to always determine the margin, since at a distance it plays one of the decisive roles.

Of course, calculating the margin of each event is a labor-intensive task. However, there are options in which this is not necessary. First of all, we're talking about about betting exchanges. Yes, we can say that even there you have to pay a commission on your winnings, but there are a number of significant advantages. In addition, it is worth mentioning special paid services that allow you to find the most profitable odds.