Loading...

Analysing the favourite-longshot bias: Why it exists and how you should respond to it

There are many things that are common knowledge in the world of sports betting, but few can match the tendency to overvalue outside bets and undervalue favourites. This phenomenon is called the favourite-longshot bias, and in this article, we will provide some recommendations for how you can use it to your benefit and keep your winnings intact. When all is said and done, bookmakers are businesses. It is for that very reason that each bookmaker will add a margin to all provided odds so that he can turn a profit. This is done by decreasing the odds relative to the fair expectation associated with each outcome. Let us take a two-player match as an example. In the following equation, the odds of player A being victorious are ‘a’ and the odds of player B emerging triumphant are ‘b’: Margin = [(1/a) + (1/b)] x 100 per cent. However, the figure of 100 per cent – reflecting as it does the sum of probabilities of all possible outcomes – will only be such in a fair book. A profit-seeking bookmaker will look to alter the equation to his advantage, choosing a figure higher than 100 per cent. This creates an excess, which is known in the industry as an overround, vig or juice. This is all intuitive, but it is not quite as obvious how the bookmaker loads his margins – he can do so all on player A, all on player B or spread evenly between the two.

How margin is added to the odds

In normal circumstances, the wisest choice would seem to be spreading the margin evenly between the two players. This would mean that if both were of a similar calibre, their fair odds would be 2.00. Read More

Betting: The impact of luck and skill

It is the question at the root of all betting: why do some people have more success at generating profits than others? Is it easy to learn the required skills, or is luck more important in determining how successful a bettor is?

Paradox of Skill

It is important to bear in mind that bettors do not want to hear that much of what they do is down to fortune. Of course, some games – roulette for example – Read More

FantasyBet

Fantasy sports are very popular in the USA. Around 50 million people are involved in NBA, NFL, MLB, NHL Fantasy leagues. This kind of entertainment only starting to make way into Europe. Premierleague Fantasy being the most popular so far with around 4 million players. Read More

Eurobasket 2017 is finally here!

Most of my readers I would guess are football punters, but today we have quite a big event starting – Fiba Eurobasket 2017! I asked my good friend, basketball expert and sports trader JP from Greece to share his opinion about upcoming games and here are his thoughts. Read More

Premierleague Fantasy August winner!

Do you know that feeling when you go for a month long holidays, back to work for 10 days already but still in holiday mood and want to do f**k all? Yeap, that’s me. I couldn’t push myself to write anything. But now we have first monthly winner and time to wake up for me. Read More

This website is not promoting gambling and it is created for educational purposes only.
Contact me by email info@onesharpgambler.com
×