Diligent sports betting bankroll management can be the difference between winning sports bettors, and those who are destined to lose all their money.
Here’s an example:
- Let’s say that you have £1,000 to gamble with in total in your sports betting account with a bookmaker, but cannot replenish this money if you lose.
- Let’s say you were betting on an event with only two possible outcomes, and the bookmaker was offering 6/5 on outcome 1, and 1/2 on outcome 2 (this is a made up example).
- Let’s say according to your value bet calculations, you thought the true odds of each outcome was 1/1 – i.e. there is a 50% chance of outcome 1, and a 50% chance of outcome 2.
- Of course you would want to bet on outcome 1, as you are getting better odds than required. You would never bet on outcome 2, as you are getting worse odds than required.
- If you bet £1,000 on outcome 1, there’s nothing intrinsically wrong with the bet in terms of value. After all, you will be making £1,200 profit if outcome 1 happens!
- However, what if outcome 2 happens? 50% of the time it will, and you will lose your stake of £1,000. As this was your whole bankroll, you will be completely broke!
So what’s the solution?
- When it comes to sports betting no matter how good the sports bet looks, if you put your whole bankroll on the line in one go you are going to lose some percentage of the time as no outcome is ever likely to be 100% certain to happen.
- A often recommended sports betting bankroll management formula is to only bet a maximum of 5% of your bankroll on any one bet.
- Notice, that as your bankroll increases your bets become bigger (as we are calculating 5% of a bigger bankroll). Conversely, as your bankroll decreases your bets become smaller (as we are calculating 5% of a smaller bankroll).
- This system makes the difficulty of losing your entire bankroll large, whilst giving you the chance to win more when you are doing well.