The world of gambling and betting is an abyss which only a few can manage to navigate through, and that does not come easy. People spend scads of time investing in learning the skill to be able to beat the bookmakers at their own game and rarely succeed as the math rarely lets them, but people are willing to take the risk as the rewards are worth the risks involved. There are two sides to the betting world, one where you are the punter placing the bets trying to predict correctly and win and the other where you are the bookkeeper or Bookie and you organize the game. While betting is comparatively easier than to Open a Sportsbook those who are willing to do it properly are sure to make a winning every time.
What is a sportsbook?
It can be a company or an individual who takes bets from punters and facilitates gambling or sports betting. The bookie or the bookmaker accepts the bets on either side of the event and makes money off of the wagered bets or pays up if the prediction turns out to be correct.
How does a bookie make money?
The best way to learn the answer to this question is by understanding the math that is involved in the process in the long run. Or by understanding that the bookie can afford bookkeeping as a result of the difference between the bets and the winning amount. But this happens rarely nevertheless here is an example to help you understand.
Let us assume that 100 punters are willing to bet on a sporting event for ease of understanding let us divide them into two halves placing bets for the two teams playing. 50 of the punters choose team A and the rest pick team B with an average bet size of 110 dollars.
- The bookie collects a total of 11 thousand dollars (110 times 100 wagerers)
- The winner side gets back their betting amount which is 5500 dollars (110 times 50)
- Since they also win 100 dollars on their bets a total of 5 grand is given out to them as their prize.
- Adding the two we get to a total of 10500 dollars.
- When you do the math, you will realize that the bookie just made 500 dollars off of a single event as the initial collected amount was 11000 dollars.