You want your money’s worth when you bet on sports. You want to determine your possible return before making a bet or calculate your return after a series of bets.
That’s what sports betting return on investment (ROI) is – the possible return on a bet or the calculated return of past wagers.
These calculations are good tools for deciding whether a bet is worth your money. But you can also assess your betting strategy over the long term using sports betting ROI.
We’ll delve into how to calculate ROI in sports betting and tell you what a good ROI is.
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How does ROI in Betting Work?
ROI in betting is the percentage of expected profit or loss from a bet. An ROI calculation won’t predict the outcome of any bet. ROI is all about numbers. However, it will give you a good idea of how a particular wager would fare over the long run.
You can also run the figures on the total outcomes of many bets to calculate your ROI.
What you consider a good ROI for sports betting depends, of course, on your approach. Betting for the fun of it is one thing; you are willing to accept some loss just for the entertainment value.
Long Term Losses
Since sportsbooks calculate odds to make money, that money has to come from somewhere, and that’s from our collective pockets. Therefore, many casual sports bettors are willing to accept about a 10% loss over the long term. If you are losing more, maybe blackjack is your game.
But, since you want to beat the book, you want to formulate the best way to get the most bang for your buck.
How to Calculate ROI in Betting?
There are variables involved in calculating sports betting ROI.
You plug in:
- The bet amount
- Your perceived chances of winning
- The odds
The calculation then gives you:
- Implied probability derived directly from the odds
- Winnings, according to all three variables
- ROI percentage
You can use a sports betting ROI calculator to do all this, but there are also specific formulas for the calculations. Here’s how a calculator’s formulas work:
Most bettors know the implied probability of moneyline betting odds. A minus figure suggests that your chances of winning are better than 50%. A plus figure, lower than 50%.
The formula looks like this:
Implied Probability = (-1*(Odds)) / (-1(Odds) + 100)
If you plug in a moneyline of -110, it looks like this:
(-1*(-110)) / (-1(-110) + 100) = .524 or 52.4%
That means a -110 moneyline gives you a 52.4% chance of winning.
This formula requires decimal odds, so the conversion formula is:
Decimal Odds = 100 /(-1 * Odds) + 1 (for negative odds)
A -110 moneyline would be 1.9091 in decimal odds.
And use this formula for winnings:
Winnings = Decimal Odds * Chances of Winning / 100 * Bet
With a $100 bet, a -110 moneyline, and a perceived chance of 60%, we have:
$114.60 = 1.9091 * 60% / 100 * $100
The formula here requires input from the other calculations.
ROI = Winnings / Bet – 1
For our example, the calculation would be:
.146 = $114.60 / 100 – 1 or a 14.6% ROI.
ROI for Total of Outcomes
If you want to calculate your return on investment after a series of bets or at the end of a season, the formula is as follows:
Profit = (Wager Returned – Amount Wagered).
If you wagered a total of $1,000 in bets during a season and you end the season with a gross return of $1,123, the ROI calculation looks like this:
($1123-$1000) / $1000 * 100% = .123 or a 12.3% ROI.
These are all excellent ROIs. With that percentage, you are getting more than your money back and doing better than most gamblers.
What is a Good ROI in Sports Betting?
Again, a good ROI in sports betting is subjective and can vary depending on an individual’s goals and expectations, but a common benchmark in the industry is an ROI of around 5%.
While this ROI may not be as high as some other forms of investment, it is still considered a good return. It’s important to note that a 5% ROI in sports betting does not guarantee consistent profits and that the results can vary greatly from one betting session to another.
Additionally, factors such as the size of your bets, the frequency of your bets, and the volatility of the sports market can also impact your ROI. Therefore, it’s important to have realistic expectations and to understand that even a 5% ROI may not be sustainable in the long run.
Improve Your Betting Results with Accurate ROI Calculations
ROI is an important metric for measuring success in sports betting. Understanding and calculating this metric can help bettors make informed decisions and improve their overall results.
To maximize your chances of success, it is important to choose top online sportsbooks, such as BetOnline, with competitive odds for top sports and events. Our recommended betting sites offer the best odds, secure transactions, and quick payouts, ensuring a high ROI.
Make the smart choice and start winning big today!
Sports Betting ROI FAQ
How do you maximize ROI in sports betting?
To maximize your ROI in sports betting, it is important to follow a disciplined betting strategy, be selective with your bets, and have a solid understanding of the sports and teams you are betting on.
Are there tools available to help me calculate my ROI in sports betting
Yes, there are many tools available to help you calculate your ROI in sports betting.
Some popular options include spreadsheets, betting tracking apps, and online calculators. These tools can help you keep track of your betting activity and calculate your ROI more easily and accurately.
What are the factors that can affect ROI in sports betting?
Several factors can affect your ROI in sports betting, including the odds offered by the sportsbooks, your betting strategy, and the outcome of the games you bet on.
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