• Blog Overview
  • Try Trademate Now!
  • YouTube
  • Podcast
  • Trading Europe
  • About Us
  • Contact
Menu

Trademate Sports

  • Blog Overview
  • Try Trademate Now!
  • YouTube
  • Podcast
  • Trading Europe
  • About Us
  • Contact
Sports Betting Fundamentals RSS
How bookies make money

How bookies make money

How does bookmakers make money?

July 20, 2016

Before you start to make profits of a bookmaker it’s important to know how a bookmaker operates and makes money. Unless you know something that the bookmakers don’t they will always have the best of you in the long run.
If there is a game between to tennis players who are equally good. There will be a 50/50 chance of either of the players winning. Like a coin flip. You would think that odds should be 2.0 on each of the players. But the bookmaker is taking a cut of the odds to make a profit. The odds will be something like 1.91 on each of the players. On average the there will be an equal amount placed on each of the players. Let’s say there is placed a total of $10,000 on each of the players. The total amount wagered is $20,000. If player A wins the bookmaker have to pay out 1.91*$10,000 = $19,100 and the same if player B had won.  Since the total amount wagered is $20,000 and  the payout is $19,100 the bookmaker has a $900 profit on this bet. So no matter what the outcome of the game is the bookmaker wins.

Usually, the odds are not equal. But the point is the bookmakers is having a cut of the odds to make a profit. If you want to know how much, it’s a very easy way to find out.  Let’s start with the bet above:

1/1.91 + 1/1.91 = 1,047=104.7%
This means they are taking a 4.7% cut of the bet.
Having a 4.7% is giving them a payout of 95.3%, the higher the payout the better the bookmaker(for you).

This can also be done with more than two outcomes.

Bayern Munchen vs Manchester City

Bayern Munchen        1.76
Draw                              3.85
Manchester City          4.45

1/1.76 + 1/3.85 + 1/4.45 = 1.0526 = 105.26%

Resulting in a payout of 100%-5.26% = 94.74%

Before choosing to use a bookmaker be sure to check their payout. It may vary from league to league within the same bookmaker. the payout of a bookmaker can be everything from 80-99%.

This video covers the topic of how bookmakers make money more in-depth.

 

 

 

Start beating the bookies

I WANT TO IMPROVE MY BETTING

Sign up with your email address to receive our latest articles and videos to help you improve as a sports trader

We respect your privacy.

Thank you!
In Uncategorized
← Odds notations
TRY TRADEMATE
Blogabet_Trademate_250x650.png

I want to improve my betting

Sign up with your email address to receive our latest articles and videos to help you improve as a sports trader

We respect your privacy.

Thank you!

Latest Posts

SPORTS BETTING STRATEGY

Featured
Value Betting 101 - How to Start Making Money With Value Bets
What is Value Betting?
Value Betting
What is Value Betting?
Value Betting
Value Betting
Bankroll Management: How Bet Sizing Impacts Your Sports Betting
bankroll-management
Bankroll Management: How Bet Sizing Impacts Your Sports Betting
bankroll-management
bankroll-management
How Does Value Betting Work?
Value Betting
How Does Value Betting Work?
Value Betting

What is sports value betting? Learn the essentials to understand how it works

Value Betting
The Ultimate Goal of Value Betting
Value Betting
The Ultimate Goal of Value Betting
Value Betting
Value Betting
How To Make A Living From Sports Betting || Part 1/3
pro-sports-betting, Featured
How To Make A Living From Sports Betting || Part 1/3
pro-sports-betting, Featured

How can I make money from sports betting? Can I make a living from it? This article is for you! Start here!

pro-sports-betting, Featured
How To Make A Living From Sports Betting || Part 2/3
pro-sports-betting
How To Make A Living From Sports Betting || Part 2/3
pro-sports-betting
pro-sports-betting
How to Make A Living from Sports Betting | Part 3/3
pro-sports-betting
How to Make A Living from Sports Betting | Part 3/3
pro-sports-betting

How can I make money from sports betting? Can I make a living from it? This is the third part and final part of a series of three articles

pro-sports-betting
Arbitrage betting or value betting?
Articles, Strategy, Sports Investing
Arbitrage betting or value betting?
Articles, Strategy, Sports Investing
Articles, Strategy, Sports Investing
Bankroll Management for Sports Trading and Betting Using the Kelly Criterion for Stake Sizing
Key betting concepts, Stake Sizing, bankroll-management
Bankroll Management for Sports Trading and Betting Using the Kelly Criterion for Stake Sizing
Key betting concepts, Stake Sizing, bankroll-management
Key betting concepts, Stake Sizing, bankroll-management
FIND VALUE NOW

SPORTS BETTING STATISTICS

Featured
Market-Efficiency
How Efficient Are Sports Betting Markets?
Market-Efficiency
Market-Efficiency
Key betting concepts, Expected Value
What Is Expected Value in Sports Betting?
Key betting concepts, Expected Value
Key betting concepts, Expected Value
Articles, Variance
What is Variance and why is it important in sports betting?
Articles, Variance
Articles, Variance
Articles, Law of Large Numbers
The Law of Large Numbers for Sports Betting
Articles, Law of Large Numbers
Articles, Law of Large Numbers
Videos, Key betting concepts, Variance
Variance in Sports Betting and Trading Explained
Videos, Key betting concepts, Variance
Videos, Key betting concepts, Variance
Must Read, Big Data
Big Data Analysis: Is Trademate Profitable?
Must Read, Big Data
Must Read, Big Data
Must Read, Articles, Variance, Reduce Variance
How to Reduce Variance in Sports Betting
Must Read, Articles, Variance, Reduce Variance
Must Read, Articles, Variance, Reduce Variance
Try Trademate

KEY CONCEPTS IN SPORTS BETTING

Featured
How bookmakers make money
Fundamental, Featured, Bookmakers
How bookmakers make money
Fundamental, Featured, Bookmakers

Learn about how different bookmakers make money and how this could affect your game and strategy in sports betting.

Fundamental, Featured, Bookmakers
What is Trademate Sports? - Trademate in a Nutshell
What is Trademate Sports? - Trademate in a Nutshell

What does Trademate do? How can I make money with value bets with Trademate? Check out this article!

How to go From Being a Winning Poker Player to a Profitable Sports Bettor
Articles, Key betting concepts, Fundamental, latest, Featured
How to go From Being a Winning Poker Player to a Profitable Sports Bettor
Articles, Key betting concepts, Fundamental, latest, Featured

If you are a poker player, this article is for you! Learn about the similarities between poker and sports betting, and how to make money from both.

Articles, Key betting concepts, Fundamental, latest, Featured
Sports Betting and the World Cup
News, Articles
Sports Betting and the World Cup
News, Articles

Interested on betting on World Cup’s games? Check out our article about some strategies to win money while enjoying the games!

News, Articles
How Does it Work to Bet on the Point Spread in Sports Betting?
Fundamental, Odds Types
How Does it Work to Bet on the Point Spread in Sports Betting?
Fundamental, Odds Types
Fundamental, Odds Types
How Does it Work to Bet on the Moneyline in Sports Betting?
Fundamental, Odds Types
How Does it Work to Bet on the Moneyline in Sports Betting?
Fundamental, Odds Types

What the Moneyline is and how it works to bet on it? In this video using the Super Bowl between the Philadelphia Eagles and New England Patriots as an example.

Fundamental, Odds Types
Odds Formats in sports betting explained
Fundamental, Odds Types
Odds Formats in sports betting explained
Fundamental, Odds Types

Bookmakers display odds in different ways. Learn how to interpret them and sharp your sports betting skills today!

Fundamental, Odds Types
What are Totals or Over/Unders? | Sports Betting For Beginners
Odds Types
What are Totals or Over/Unders? | Sports Betting For Beginners
Odds Types

Learn more about Totals or Over/Unders odd types in sports betting.

Odds Types
What is Moneyline betting? | Sports Betting For Beginners
Articles, Beginner's guide, Beginners, Odds Types
What is Moneyline betting? | Sports Betting For Beginners
Articles, Beginner's guide, Beginners, Odds Types

Moneyline betting is the easiest form of betting in sports. Learn how it works today!

Articles, Beginner's guide, Beginners, Odds Types
What is the Draw No Bet? — Sports Betting For Beginners
Articles, Beginners, Beginner's guide, Odds Types
What is the Draw No Bet? — Sports Betting For Beginners
Articles, Beginners, Beginner's guide, Odds Types

Learn how the Draw no Bet works with our football betting examples and how to create them yourself if your bookie doesn’t offer this option.

Articles, Beginners, Beginner's guide, Odds Types
Starting trading now

PRO SPORTS TRADING

Featured
A Lesson Learned Through Sports Betting
Bookmakers, Articles, Betting Story
A Lesson Learned Through Sports Betting
Bookmakers, Articles, Betting Story

To become a professional sports bettor, you need to track more than your earnings. Learn all the tactics of our CEO today!

Bookmakers, Articles, Betting Story
Jonas and Marius from Trademate Tells the Story of Their Largest Win
Betting Story
Jonas and Marius from Trademate Tells the Story of Their Largest Win
Betting Story

Learn about professional bettors making it in the sports trading world. Tell us your largest win!

Betting Story
Jonas Gjelstad on the Joe Ingram Poker Life Podcast
Videos, Podcast, Ingram
Jonas Gjelstad on the Joe Ingram Poker Life Podcast
Videos, Podcast, Ingram
Videos, Podcast, Ingram
£10,000 to £1,000,000 in 12 months - The Jonas Gjelstad Story pt. 1
Videos, Documentary, Jonas Gjelstad
£10,000 to £1,000,000 in 12 months - The Jonas Gjelstad Story pt. 1
Videos, Documentary, Jonas Gjelstad
Videos, Documentary, Jonas Gjelstad
"I lost $256,000 in a day" Jonas Gjelstad - Professional Sports Bettor - pt 2
Videos, Documentary, Jonas Gjelstad
"I lost $256,000 in a day" Jonas Gjelstad - Professional Sports Bettor - pt 2
Videos, Documentary, Jonas Gjelstad
Videos, Documentary, Jonas Gjelstad
"I want to compete with the best" - Jonas Gjelstad - Professional Sports Bettor - pt3
Documentary, Jonas Gjelstad
"I want to compete with the best" - Jonas Gjelstad - Professional Sports Bettor - pt3
Documentary, Jonas Gjelstad
Documentary, Jonas Gjelstad
"It's a weekend job". - Jonas Gjelstad - Professional Sports Bettor pt. 4
Documentary, Videos, Jonas Gjelstad
"It's a weekend job". - Jonas Gjelstad - Professional Sports Bettor pt. 4
Documentary, Videos, Jonas Gjelstad
Documentary, Videos, Jonas Gjelstad
"The truth the bookmakers don't want you to know"-  Jonas Gjelstad - Professional Sports Bettor  pt. 5
Documentary, Videos, Jonas Gjelstad
"The truth the bookmakers don't want you to know"- Jonas Gjelstad - Professional Sports Bettor pt. 5
Documentary, Videos, Jonas Gjelstad
Documentary, Videos, Jonas Gjelstad
"Starting over again with only £1,000" - Jonas Gjelstad - Professional Sports Bettor  Pt. 6
Documentary, Videos, Jonas Gjelstad
"Starting over again with only £1,000" - Jonas Gjelstad - Professional Sports Bettor Pt. 6
Documentary, Videos, Jonas Gjelstad
Documentary, Videos, Jonas Gjelstad
take me To Trademate

SPORTS BETTING GUIDES

Featured
How To Use The Big Data Tool Inside The Trademate Sports Software
Jan 11, 2019
How To Use The Big Data Tool Inside The Trademate Sports Software
Jan 11, 2019

This is a guide on how to use the Big Data Tool inside the Trademate Sports software

Jan 11, 2019
Top 10 Sports Betting Blogs To Read and Follow
Jul 25, 2018
Top 10 Sports Betting Blogs To Read and Follow
Jul 25, 2018

When it comes to sports betting and value betting, there’s a lot of bad information out there. Trademate Sports compilated its top 10 blogs with quality information you should follow.

Jul 25, 2018
Frequently Asked Questions about Trademate Sports (FAQ)
Dec 7, 2017
Frequently Asked Questions about Trademate Sports (FAQ)
Dec 7, 2017

Trademate answers! Here are some of the questions we answer daily to our user. Remember that the best way to become a profitable sports trader is by getting informed.

Dec 7, 2017
Trademate Core Walkthrough Guide || A Sports Trading Software
May 30, 2017
Trademate Core Walkthrough Guide || A Sports Trading Software
May 30, 2017
May 30, 2017
Trademate Pro Walkthrough Guide || A Sports Trading Software
May 29, 2017
Trademate Pro Walkthrough Guide || A Sports Trading Software
May 29, 2017
May 29, 2017
Setting up your Tradefeed Presets
Apr 26, 2017
Setting up your Tradefeed Presets
Apr 26, 2017
Apr 26, 2017
Gyakran Ismételt Kérdések -  Trademate Sports - Hungarian FAQ
Dec 1, 2015
Gyakran Ismételt Kérdések - Trademate Sports - Hungarian FAQ
Dec 1, 2015
Dec 1, 2015
FIND VALUE

REVIEWS AND INTERVIEWS

Featured
Global Extra Money - Thorough Trademate Review
Dec 21, 2018
Global Extra Money - Thorough Trademate Review
Dec 21, 2018

Check out the latest professional review of Trademate Sports by Global Extra Money

Dec 21, 2018
Goal Profits Review of Trademate Sports
Jul 24, 2018
Goal Profits Review of Trademate Sports
Jul 24, 2018

GoalProfits.com reviewed Trademate Sports with satisfactory results. Learn more.

Jul 24, 2018
Jan 23, 2018
ONE SHARP GAMBLER REVIEW: MY 7 DAYS TESTING OF TRADEMATE SPORTS
Jan 23, 2018
Jan 23, 2018
#6: What Is It Like Being a Sports Trader? || INTERVIEWS WITH TRADEMATE SPORTS CUSTOMERS
Jan 13, 2018
#6: What Is It Like Being a Sports Trader? || INTERVIEWS WITH TRADEMATE SPORTS CUSTOMERS
Jan 13, 2018
Jan 13, 2018
Smart Sports Trader Review of Trademate Sports - Is Value Betting The Next Big Thing?
Dec 7, 2017
Smart Sports Trader Review of Trademate Sports - Is Value Betting The Next Big Thing?
Dec 7, 2017
Dec 7, 2017
Blogabet Review of Trademate Sports - The Ultimate Value Betting Tool
Dec 7, 2017
Blogabet Review of Trademate Sports - The Ultimate Value Betting Tool
Dec 7, 2017

Check out the review of our sports betting software on Blogabet

Dec 7, 2017
Punter2Pro Review of Trademate Sports. The best value betting software
Dec 7, 2017
Punter2Pro Review of Trademate Sports. The best value betting software
Dec 7, 2017
Dec 7, 2017
Church of Betting Review of Trademate Sports - A Sports Trading Software
Dec 7, 2017
Church of Betting Review of Trademate Sports - A Sports Trading Software
Dec 7, 2017
Dec 7, 2017
#5: What Is It Like Being a Sports Trader? — Interviews with Trademate Sports Customers
Jul 26, 2017
#5: What Is It Like Being a Sports Trader? — Interviews with Trademate Sports Customers
Jul 26, 2017

Interview with Airidas, one of our customers and professional sports bettor

Jul 26, 2017
#4: What Is It Like Being a Sports Trader? || Interviews with Trademate Sports Customers
Jun 27, 2017
#4: What Is It Like Being a Sports Trader? || Interviews with Trademate Sports Customers
Jun 27, 2017
Jun 27, 2017
TRY TRADEMATE

SPORTS TRADING VIDEOS