How to make money by investing in sports betting over the Internet?
Author and source - Vitaliy Chernenko
February 15, 2017 (Investorideas.com Newswire) Money bets on a particular outcome of sports competitions have existed from the ancient times and were considered as a form of gambling rather than financial activity. Recently, however, investments in sports betting has become very popular way of investing money, and bookmakers, who are among the leaders in terms of turnover funds, close to the stock exchanges on the nature of their activities.
How and where?
Modern bookmaker is a specialized company that provides services for the conclusion of money bet on the outcome of a sporting event and pays cash, if the result of the competition meets the conditions of the bet. Bets are accepted from the corresponding coefficients, which are calculated on the basis of the inverse probability of the outcome of the competition (for example, the ratio is equal to 2, and the winning bid will be multiplied by the sum of equally probable outcomes).
The set of possible outcomes and their respective coefficients form the so-called Line. To construct the line, bookmaker experts use statistical, probabilistic and heuristic methods, with the well-known law that the probability of events that make up a complete group, in an amount equal to one (or 100%), somewhat modified. For earnings, bookies laid a margin of 10-15%; In addition, by acceptance of bets, odds offered by bookmaking company, may be changed.
Since the guaranteed profits of bookmakers odds reduces the coefficients of winning for the gambler, investment in sports betting is often produced in the form of betting among the players directly. For this purpose, a special Exchange available, where everyone can trade:
- It has no restrictions on the maximum value of the bet and win;
- In the case of a win you should not give part of income in the form of margin (exchange commission is about 5% from winning).
The disadvantage of such exchange is a delayed formation of lines and favorable rates only on well-projected outcome of the competition. Trades between the parties, player/gambler which make bet ("back") and its host who accepts bet ( "lay"), may continue until the outcome of the match.
How to invest, without betting yourself?
Direct investment in bets in bookmaker office, not to mention the trades on the exchange can be a very exciting process, but not all investors have the time and desire to do it. Using such a mechanism, like asset management, sports betting can be carried out by the person who controls the PAMM-account. The investor will receive the following advantages:
- Funds transferred to the PAMM-account remain in the ownership of the investor and the manager does not get physical access to them;
- Strategy and management tactics on the stock exchange is determined by the account manager who has extensive professional experience and is interested in getting the maximum profit;
- Input and output of money from PAMM account can be made by investor in any time.
Asset management helps minimize the risks for investment in sports betting, but in this case the investor loses a significant part of the probability of winning, which are deducted from commissions of PAMM-account manager.
For many novice online investors primary motive of such investments is a love for a certain kind of sport or the inclination to gamble. However, you should know that sports betting is one of the most risky investments, and the definition of a winning strategy requires a lot of experience, knowledge, and most importantly - composure and good judgment. Therefore, it should be noted that the enjoyment of the game and income by investing in the sport over the Internet (and not only) can not be combined with each other.
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