When you get into sports betting, the first thing you’ll run into is a sportsbook. It’s where all the action happens, where odds are set, where bets are placed and where fortunes can be won – or lost. But how do sportsbooks work? For a beginner, it can be overwhelming.
This will break it down and explain everything you need to know.
What is a Sportsbook?
At its simplest, a sportsbook is a platform – physical or online – where people bet on sports. It can be a standalone business, part of a casino or an online platform. From football and basketball to niche sports like cricket or MMA, sportsbooks offer odds on all sorts of events so bettors can make money based on their predictions.
Setting the Odds
One of the most important parts of a sportsbook is how they set the odds. Odds are the price or probability of something happening. The best betting sites are experts at setting these odds. They have teams of experienced analysts and advanced algorithms to calculate probabilities to the decimal point.
Odds are influenced by many factors, past performance, injuries, team dynamics, weather and more. A sportsbook’s goal is to set the odds so that the number of bets on each side of an outcome is equal. That way they can make a profit no matter what happens which is done through something called the “vig” or “juice” – a small commission added into the odds.
Sharp vs Public Bettors
When you bet, you’re part of a bigger ecosystem of bettors. Broadly speaking there are two types of bettors: sharp and public. Sharp bettors are professionals or highly skilled bettors who beat the sportsbook by finding value in the odds. They bet big and are known for making smart, strategic bets.
Public bettors are the rest of us, the recreational bettors. They follow trends or bet based on gut feelings rather than data. Public bettors bet emotionally, they bet for their favourite teams or follow the hype.
Sportsbooks take these types of bettors into account when setting the odds. If too much money comes in on one side they will adjust the odds to get more action on the other side to balance their risk.
Types of Bets
Now that you know how sportsbooks set odds, it’s time to know what kind of bets you can place. Here are a few:
Moneyline Bets: The simplest bet, where you bet on who will win the game or match. No margin of victory to worry about, just pick the winner.
Point Spread Bets: Here you bet on who will win and by how much. The point spread levels the playing field by giving one team an advantage and the other a disadvantage. For example if a team is -6.5 they need to win by more than 6 for you to win your bet.
Over/Under (Totals): Here you don’t bet on the winner, but the total points scored in the game. You simply bet on if the total will be over or under a certain number.
Parlays: A parlay is when you combine multiple bets into one. The payout can be much higher than individual bets but you need all your selections to win for the bet to cash. This is a high risk, high reward type of bet.
Props (Proposition Bets): These are bets on specific events within a game. For example you might bet on how many touchdowns a player will score or if the first team to score will win the game. Props can be simple or very specific.
Futures: A futures bet is a long term bet on an outcome down the road, such as who will win the next Super Bowl or NBA Championship. These bets are usually made before the season starts or early in the season.
Bankroll Management
For beginners, one of the most important tips is to learn how to manage your bankroll. This is the amount of money you have set aside for betting. Without proper management, even the sharpest predictions can lead to losses. Many experts recommend wagering no more than 1-2% of your total bankroll on any one bet. This helps to minimize risk and allows you to keep betting over time.
Also, set a budget and stick to it. It’s easy to get caught up and chase losses after a bad bet, but this is a bad habit. Successful bettors are disciplined and know when to walk away and when to take calculated risks.
Shopping for the Best Odds
One of the biggest secrets for bettors, even newbies, is to “shop” for the best odds. This means checking multiple sportsbooks to see who has the best odds for a particular game or event. The differences might seem small at first but can add up big time over the long haul.
Different sportsbooks have different odds on the same event because they service different types of bettors. Some cater to sharp bettors, others to the general public. By comparing odds across multiple platforms, you can get the most bang for your buck and increase your chances of winning over time.
Bonuses and Promotions
Many sportsbooks, especially online ones, offer promotions to new customers. These can be sign-up bonuses, risk-free bets or deposit matches. While these promotions can add value, read the fine print. Many bonuses come with strings attached like you have to bet a certain amount before you can withdraw any winnings.
Conclusion
Understanding how sportsbooks work is key to being a good bettor. From how odds are set to the types of bets you can make, you need to know how the platform works. Whether you’re betting on a whim or strategizing like a pro, knowing the difference between sharp and public bettors, managing your bankroll and shopping for the best odds will go a long way in helping you win. With time you’ll get more comfortable and start making better bets.