Setting the Odds – A Guide to New Bookies

Setting the Odds – A Guide to New BookiesIf you are a bookie, setting the odds for an event can lead to long term sustainability of the business. In the old days, it is purely a numbers game. In fact, the bookie has the sole responsibility of coming up with his lines. 
With the advancement of technology, sports betting software can now help in setting odds. However, it is still important for bookies to know the basics. That way you can personalize lines based on your players’ betting history.

Setting the Odds to Gain Advantage

All sportsbooks have in-built margins on various sports events. For instance, many bookies increase their prices up to 107 percent as long as all factors are known and there’s a three-way business. However, prices can increase by 120 percent or even higher if there are unknown factors. That way they can protect themselves from knowledgeable gamblers. 
Although it is hard to make the perfect book, having an in-built margin will help in the long run. In addition, the bookie needs to ensure he set the right limit on wagers. With player and liability management, you can become a successful bookie in no time. 

Pricing the Market

The first step to setting the odds is to set the actual chance of the event to 100 percent. Then you change the prices based on your in-built margin for the event. For instance, the odds for the international friendly between South Korea and Iran:
South Korea – 60.6 percent
Draw – 22.2 percent
Iran – 17.2 percent
When the prices are increased to a margin of 107 percent, the resulting odds are:
South Korea – 1.54
Draw – 4.22
France – 5.40
Although South Korea is the favorite, the bookie doesn’t need to worry about losing a lot of money because the bets are at the right price. Make sure you pay off winners on time. That way you get good pay per head reviews for your business. Over time, you can earn profits by beating players through your in-built margin.    
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