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(2011) The Art of Bookmaking: Mastering the Skill of Odds Making for Any Sport



A bookmaker strives to accept bets on the outcome of an event in the right proportions in order to make a profit regardless of which outcome prevails. See Dutch book and coherence (philosophical gambling strategy). This is achieved primarily by adjusting what are determined to be the true odds of the various outcomes of an event in a downward fashion (i.e. the bookmaker will pay out using his actual odds, an amount which is less than the true odds would have paid, thus ensuring a profit).[3]




(2011) The Art of Bookmaking: How to Compile Odds for Any Sporting Event




The odds quoted for a particular event may be fixed but are more likely to fluctuate in order to take account of the size of wagers placed by the bettors in the run-up to the actual event (e.g. a horse race). This article explains the mathematics of making a book in the (simpler) case of the former event. For the second method, see Parimutuel betting.


In considering a football match (the event) that can be either a 'home win', 'draw' or 'away win' (the outcomes) then the following odds might be encountered to represent the true chance of each of the three outcomes:


This massive increase in potential profit for the bookmaker (19% instead of 9% on an event; in this case the double) is the main reason why bookmakers pay bonuses for the successful selection of winners in multiple bets: compare offering a 25% bonus on the correct choice of four winners from four selections in a Yankee, for example, when the potential overround on a simple fourfold of races with individual books of 120% is over 107% (a book of 207%). This is why bookmakers offer bets such as Lucky 15, Lucky 31 and Lucky 63; offering double the odds for one winner and increasing percentage bonuses for two, three and more winners.


In settling winning bets either decimal odds are used or one is added to the fractional odds: this is to include the stake in the return. The place part of each-way bets is calculated separately from the win part; the method is identical but the odds are reduced by whatever the place factor is for the particular event (see Accumulator below for detailed example). All bets are taken as 'win' bets unless 'each-way' is specifically stated. All show use of fractional odds: replace (fractional odds + 1) by decimal odds if decimal odds known. Non-runners are treated as winners with fractional odds of zero (decimal odds of 1). Fractions of pence in total winnings are invariably rounded down by bookmakers to the nearest penny below. Calculations below for multiple-bet wagers result in totals being shown for the separate categories (e.g. doubles, trebles etc.), and therefore overall returns may not be exactly the same as the amount received from using the computer software available to bookmakers to calculate total winnings.[7][8]


Note: 'All up to win' means there are insufficient participants in the event for place odds to be given (e.g. 4 or fewer runners in a horse race). The only 'place' therefore is first place, for which the win odds are given.


The possible payout of the parlay is determined by the combined likelihood of all bets placed. A parlay of riskier bets (more underdogs) will pay greater than a parlay of more likely bets (more favorites). In a parlay, all bets need to win in order for the parlay to win. If one of the bets on a parlay loses, the whole parlay loses. In the event of a push, the pushed bet would be taken out of the parlay and the parlay would bump down to a set of odds without that bet.


In Asian betting markets, other frequently used formats for expressing odds include Hong Kong, Malaysian, and Indonesian-style odds formats. Odds are also quite often expressed in terms of implied probability, which corresponds to the probability with which the event in question would need to occur for the bet to be a break-even proposition (on the average).


Like the NBA and MLB, the NFL issued a statement on May 14, 2018. It emphasized the league's commitment to protecting the integrity of the game: "The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute." Moreover, the NFL called on Congress to craft a Federal framework for regulated sports betting. "Congress has long recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events. Given that history, we intend to call on Congress again, this time to enact a core regulatory framework for legalized sports betting."[21]


Where an exchange is less useful is for comment. The anonymous nature of the way users trade on exchanges, and because there is no odds-compiler/trader overseeing the market means there is no one to interview on the reason behind price moves.


Jamie Loughead is a political odds-compiler for a well-known British bookmaker. His political odds are often used by news media, and he has written about politics as a freelance journalist.


When that Third Division team takes the lead away from home against a Premier League side in the FA Cup, that sound you can hear is odds compilers across the land trying manfully to reset their prices.


We all know about betting odds that are compiled prior to a ball being hit, kicked or potted, but what happens when the match has started? Technological advancements have facilitated in-play betting, with mobile punters having access to an ever-changing landscape of odds as a sporting event unfolds. The creative minds behind bookmakers are smart, and they recognised a new opportunity for leveraging additional profit.


Clearly, this harms their chances of winning and promotes the cause of their opponents. Live betting odds try to reflect these changes, and enable punters to find value hidden within the minutiae of a sporting event. As momentum fluctuates, so too do the markets.


The lucky individuals that get to compile in-running prices are called odds compilers or traders, and ultimately their first aim is to minimise the amount of risk attached to each event and market. They do this by accurately setting their prices according to the profit margin outlined above. But of course they still need to prepare prices that are enticing to the bettor.


Those players interested in some live betting now that you've heard all about how in-running odds are created, browse our list of topnotch live betting sites to find the perfect bookie for your next live event. If you're looking for a recommendation from the list, check out NetBet's stellar live-betting section and start in-play betting today!


Illicit Internet gambling implicates at least seven federal criminal statutes. It is a federal crime (1) to conduct an illegal gambling business under the Illegal Gambling Business Act, 18 U.S.C. 1955; (2) to use the telephone or telecommunications to conduct an illegal gambling business involving sporting events or contests under the Wire Act, 18 U.S.C. 1084; (3) to use the facilities of interstate commerce to conduct an illegal gambling business under the Travel Act, 18 U.S.C. 1952; (4) to conduct the activities of an illegal gambling business involving either the collection of an unlawful debt or a pattern of gambling offenses, the Racketeer Influenced and Corrupt Organizations (RICO) provisions, 18 U.S.C. 1962; (5) to launder the proceeds from an illegal gambling business or to plow them back into such a business under money laundering provisions of 18 U.S.C. 1956; (6) to spend more than $10,000 of the proceeds from an illegal gambling operation at any one time and place under the money laundering provisions, 18 U.S.C. 1957; or (7) for a gambling business to accept payment for illegal Internet gambling under the Unlawful Internet Gambling Enforcement Act (UIGEA), 31 U.S.C. 5361-5367.


Grammatically, interstate transmission appears as a feature of only half of the elements (compare, "for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest," (IV.A.1 & 2. above), with, "for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers," (4.B. & C. above). Nevertheless, virtually every court to consider the question has concluded that a knowing, interstate or foreign transmission is an indispensable element of any Wire Act prosecution.24


As a practical matter, the Justice Department appears to have resolved the question of whether the section applies only to cases involving gambling on sporting events (compare IV.A.1 & 2. with IV.B. & C. again). The vast majority of prosecutions involve sports gambling, but cases involving other forms of gambling under the Wire Act are not unknown.25 One federal appellate panel concluded that the Wire Act applies only to sports gambling;26 while a subsequent district court concluded that it applies to non-sports gambling as well.27 The Justice Department's Office of Legal Counsel, however, ultimately opined that "interstate transmissions of wire communications that do not relate to a 'sporting event or contest,' 18 U.S.C. 1084(a), fall outside the reach of the Wire Act."28 2ff7e9595c


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