A Closer Look At Some Sports Betting Math You Should Know

Unless you happen to be the most casual of sports betting fans who only happens to place a wager when the favorite is in town for an event, chances are you a bit more focused on your sports betting. The sort of focus that has an end goal of completing the season with more funds than the beginning of the season. With that in mind, how about a deeper look at sports betting from the standpoint of Return.

Return on Investment or (ROI) to be exact. Yes, the same concept used by investors and business leaders to evaluate their results. As a sports betting fan, you owe it to yourself to understand ROI and how it relates to your sports betting activities. After all, think about it this way; you can place wagers, calculate odds, pick winners and losers all season long. Yet if you don’t really have some way to put all of that sports betting together into some sort of metric that is easily understood, you may in fact be kidding yourself as to the success of your sports betting picks.

So how is ROI actually calculated in the sports betting world? First take the example of sports betting season. Suppose you pulled out your wallet and placed exactly 100 wagers over the course of the season. Furthermore, to keep the math simple and straightforward, suppose each and every one of those wagers were exactly $100. In other words, you laid out $10,000 in sports bets for the entire season, not taking into account the juice, more on that later. That is your investment or the ‘I’ in ROI.

Now keep this example moving along by supposing that by some stroke of fate, luck or whatever you won exactly half of the wagers you placed. At first glance, that sounds pretty good does it not? Not so fast. You see, to calculate your ROI you must include the required juice from the bookmakers. Note that a good average figure for the juice is 11/10. Now what?

It turns out that in terms of ROI, you are actually upside down or a net loser for the year despite winning half of the wagers. You see, your actual real dollar investment for the $100 wagers times 100 sports bets turns out to be $11,000 after adding in the juice. Now complete the math and you can readily see that you are in fact down -4/5 or -$500. In other words, for an $11,000 outlay your return is a negative $500. Ouch!

Can you see now why you owe it to yourself to track your sports betting results and to take the time to calculate your actual sports betting ROI?

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