Sports Betting as an Alternative Investment

There is no tax on betting in the UK which is a big advantage and no pari-mutuel system on horse racing. Very briefly the US pros generally turn to Basketball as a major source of income simply because of the sheer number of games -

Of course to many members of society – betting also carries a great big “loser” tag. But then no bosses, politics…you know the score.

Betting is also virtually recession proof, lets face it only a huge war might disrupt the national sports schedule. King

Many will dismiss outright the ability to make good returns on your investment through the medium of sports betting. The price you get in the morning is the price you stay with – unlike US horse betting which is subject to starting price odds and heavy taxes. Sports markets are not influenced by the economy. Football (NFL) is big too though game numbers are few. In the UK and Europe it is mainly Soccer and Horse Racing. I say curiously because if the book is doing its job properly, it is taking the action from both sides of the line (odds on the event) and simply taking the commission in the middle. Baseball runs somewhere in between. Still, if you are not profitable in your betting after say 350 bets or thereabouts – it may be time to say “ok this is not for me” or “ok let me re-think my betting strategy.” You simpy cannot tell if you are a good or bad bettor after 10, 20 or 50 bets – with those low numbers you are still falling victim to standard deviation and probability.

Anywhere between 18% and 22% on betting turnover (that money actually put through the sportsbooks) annually. Remember a good bettor will still lose around 4.4 to 4.6 bets out of 10. This is not without justification since the vast majority of sports bettors do lose.

Generally I have found that sports betting produces bettor average returns year on year. The laws of probability defy accurate annual estimates.

Sports Betting as an Alternative Investment

by: Daniel B.

You will notice that I have not stated losing years – this is because they are rare – I have experienced one in my life time, my first. Most people trust their savings and investment income to experts and no doubt if the betting public trusted their income to the 1% or 2% of betting experts who made a profit – the loser label might become less sticky. If you are not getting a value price, then you will find it hard to make a profit.

This article was posted on January 29, 2005

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So what kind of returns can you expect?

The Sports. The sportsbook makes its money whatever the result – they are merely commission-takers. Winning bettors do not win money from a sportsbook, they win money from other losing players. I wonder how many young people on Wall Street today can confidently say they will only have one losing year? There may be a handful, those engaging in arbitrage and those experienced in ‘selling’ as well as ‘buying’ the market – but there won’t be many.

So do the sportsbooks close accounts if you are a winning player? Well curiously the answer is ‘yes’. Big bets means big turnover, big turnover means big profits.

The key to success in any trading or betting environment is value. Of course this could vary greatly – years of 30% and 13% would also be possible. It is tougher psychologically as you generally act in a lone capacity. I am always aware of the possibility but I am confident I will never experience one again – partly because of the numerous hedging methods now available on the sports betting exchanges. No corporate social or support structure, no lunches, no team environment. You worship different gods and your path is one that runs through the wilderness and is not well trodden. you need to bet high numbers of games to get the returns. You will love it or hate it.. . I guess some books simply do not like winners – but many manage the action well and allow big bets. You “buy” it. I would, however, estimate that the percentage of “losers” would be equally high in the world of stock trading and investment markets if you considered those individuals who entered that environment without the necessary experience.

You need to indentify the “product” eg a stock or a team – it doesn’t matter. It is not really surprising as betting is hard work, solitary, and you have to grind out thousands of bets to get your returns. If your expectation of that product doing well is higher than the price on display – in relative terms. Hockey does not have many takers but the lines are often the best value – the prices can be very generous

David E. Ramsey

David E. Ramsey

Usually, bookmakers run different policies and requirements for preparing wagers on arbitrage sports betting with abnormal results. This will naturally influence the end result of the arbitrage you are dealing with. If this describes the circumstance, it is then ideal to verify the policies maintained by the bookies before you place your wagers with them. Simply examine if the bookmakers share the same regulations for every sporting event you may be interested in.
David E. Ramsey
About David E. Ramsey
Usually, bookmakers run different policies and requirements for preparing wagers on arbitrage sports betting with abnormal results. This will naturally influence the end result of the arbitrage you are dealing with. If this describes the circumstance, it is then ideal to verify the policies maintained by the bookies before you place your wagers with them. Simply examine if the bookmakers share the same regulations for every sporting event you may be interested in.

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