Last updated on September 21st, 2021 at 08:47 am
Living Like a Bookie Can be Stressful but Lots has Changed
Living like a Bookie? Several centuries ago, people engaged in sports gambling without placing bets at bookmakers. The first bookies were established in the 1790s.
Today, there are thousands of sportsbooks worldwide. But some amateurs don’t understand how they exist. Read on to learn how bookies operate.
How Do Bookies Set Lines and Odds
Many sportsbooks hire skilled odds compilers to set lines and odds. They normally use sophisticated software, and they understand certain sports. The following factors influence odds compilers as they create lines and odds:
1. Profit Margin
Bookies factor in their profit margin when setting odds and lines as they pay PPH companies a commission for each active punter. It is called the Overround or vigorish (vig). A real bookie will have a guarantee of making a profit once it balances its book.
2. Their Outlook
Odds compilers often set lines based on their outlook. It helps them determine the likelihood of each outcome. For example, a tennis game can constitute two players.
Thus, the compilers will determine the winning probability of each player. But, markets such as point spreads in football are complex. So, odds compilers forecast the winning side and their total points.
3. Competitors’ Lines and Odds
Some punters have signed up at different bookies, while others have one gambling account only. Modern-day gamblers are learning how to compare lines and odds, as they are sensitive to price changes. Betting firms offer attractive odds to broaden their clientele.
4. The Likely Betting Activity
Experienced odds compilers predict the team or player that most punters will back. Thus, it helps them reduce risk and increase potential profits.
Why a Bookie Changes Lines and Odds
Odds compilers often adjust lines and odds before some sports events start due to the following reasons:
1. The Weight of Money
Each real bookie aims at having a balanced book. So, they strive to pay out a constant amount of money for any outcome. This prompts operators to track each player’s gambling activities.
Sportsbooks predict an action, sets lines and odds in a manner that they will balance their books. Yet, things turn against them at times, as some experienced pundits are unpredictable. They can make a different action that a bookie hadn’t forecasted.
In such a scenario, odds compilers adjust odds according to the weight of money the bookie accepts. For example, if Tottenham Hotspur plays Hull City in a few days, Tottenham might be in great form, while Hull City is the last team in the English Premier League (EPL). Therefore, a betting firm can price this game’s market as shown below:
- Tottenham Hotspur at 1.60
- Draw at 2.50
- Hull City at 3.10
Most gamblers will back Tottenham due to their stellar performance, while others will bet on Hull City, hoping that they will upset Tottenham. Even so, punters who aren’t sure how the match will bet on a draw.
2. Outlook Change
Odds compilers’ opinions usually influence the initial lines and odds. This is because they assess various factors when considering the outlook. For instance, an upcoming tennis game can have the following odds:
- Player C – 1.50
- Player D – 2.80
Player C is the strong opponent, and the bookie believe that he will win the game while Player D is an underdog. This has prompted bookmakers to assign him 2.80 odds. However, if a day before game day, Player C slightly injured his foot, and leading media stations spread the news, odds compilers might increase his odds and increase those of Player D, and the new market will be:
- Player C – 1.80
- Player D – 2.50
The change in outlook will shift the betting markets. The weight of money often causes unexplained line movements.
Novice bookmakers take a while to break even. Some operators offer welcome bonuses and free bets to attract more players. However, each bookie needs to set accurate lines and odds to have a high profit margin.
Learn more:
Grow Your Handle and Hold this Summer With Pay Per Head
Build Your Bookie Business Around Real Bookies Pay Per Head
