Joe Peta was a Wall Street trader who took his mathematical and analytical skills to the world of sports betting, where he proceeded to make a small fortune betting against the official baseball. Sports betting is a rapidly growing industry in the United States, particularly after a 2018 ruling by the Supreme Court that opened the door to legalized operations on a state-by-state basis.
The other important United States law that applies to sports betting is The Professional and Amateur Sports Protection Act of 1992. The interesting thing about this law is that it just got struck down by the Supreme Court a few months ago. Sportsbetting Introduction. Sportsbettors attempt to predict the outcome of matches and wager accordingly. Bets are placed at sportsbooks which can be found in-person at casinos or online at betting sites.Later on we will discuss what you need to know about picking your first betting.
I’m not sure why I waited so long to add my “what is sports betting” post to my series of “what is gambling” posts. Sports betting, worldwide, is probably the biggest gambling industry in existence.
This is more impressive when you consider that in the United States, sports betting has been illegal almost everywhere since almost forever.
I’ll get more into the legalities related to gambling on sports later in this post, but for now—here’s an introduction.
If you haven’t read the other posts in this series, you might not understand what I’m up to here.
I’m trying to confront what’s essential about gambling itself and what’s essential about various aspects of gambling.
The idea is to explain these subjects to people who don’t understand what they’re really all about in a way that the reader will be able to make an educated decision about whether to participate in that activity.
Besides that, I want the reader who chooses to participate to be able to participate intelligently.
In other words, I want you to have the best possible chance of winning—even when you’re playing a gambling game with a negative expectation. (That’s most of them, by the way—including betting on sports.)
Sports Betting Can Be Really Simple
If you go to the bar with your buddy to watch a football game, and you bet him $20 (or even just a round of drinks) that the Cowboys will win, you’re engaged in betting on sports.
In fact, for some gamblers, that’s the extent of their involvement in sports betting. Some of those gamblers might even wonder at the necessity of a “how sports betting works” blog post.
These unsophisticated gamblers are almost certainly losing money in the long run from their sports betting activities.
Yes, the outcome of any sporting event has an element of randomness to it, but that doesn’t mean it’s entirely up to chance.
Obviously, some teams play better than others. It’s rare that a game has a 50% probability of winning for both sides.
In football, which is the predominant sport bet on in the United States, most sportsbooks even the odds by setting up a point spread on the game. (This is also often called “the line.”)
The underdog is the team which is more likely to lose. The favorite is the team which is more likely to win.
When you bet on an underdog with a sports book, they give them points. The number of points is agreed to when you place the bet. For example, if a team is a 3-point underdog, when it comes time to settle the bet, you get to add 3 points to the underdog’s score to determine if you won the bet.
The oddsmakers working at the sports books are good at setting the lines in such a way that there’s a 50/50 probability of winning. They’re also good at getting an equal amount of money on either side of a game.
That’s not the only way books manage these things, though. In other games, they adjust how much you must bet to win $100, or how much money you’ll win if you bet $100.
I’ll explain how that works in another section, but first, let’s talk about a more basic question:
What Is a Sports Book?
Maybe I should have explained this first, but better late than never. A sports book is a business that makes its money by taking action on sporting events.
Sports books will accept bets on either side of a contest.
You can bet with your buddies. You can bet with a local underground sports book. (A “bookie.”) Or you can bet with an online sportsbook that doesn’t care about the legality of their behavior in the USA because they’re located offshore somewhere.
Regardless of whether you’re dealing with a local bookie, a legal sports book, or an offshore, internet-based sports book, you’re dealing with the same (or similar) business model.
These companies are in business to make a profit, and they have a specific and reasonably easily understood means of doing so.
What Is Vigorish (The vig) and How Does It Work?
You can think of the vigorish as the commission that the sports book charges you to take your action. It’s how they make their profit.
It’s most easily understood in the context of a football bet. Remember how I discussed the point spread, and how it made a bet on either team a 50/50 proposition?
The sports book doesn’t bet even money on such a bet. They usually require you to risk $110 to win $100. (The amount doesn’t matter; the ratio does. You could bet $55 to win $50 or $22 to win $20.)
They always represent this as -110, which is the amount you’ll lose on a $100 bet.
Some books charge more vig than that. They might charge -115 or -120.
Other books offer discounted vig. You might only need to risk $105 to win $100 at such a book.
The vig is what makes the sports book profitable. Also, if you’re not a sharp sports bettor—an expert who wins money—you’ll lose money over the long run betting with sports books, even if you’re winning 50% of the time.
If you know anything about casino gambling or poker, you can compare the vig with the house edge or the rake, respectively.
The Legality of Sports Betting
I’ve also mentioned that sports betting is illegal throughout most of the United States. This is especially true of online sports betting.
I don’t want to discourage you from betting on sports at your favorite internet sportsbook, though—enforcement activities are almost always exclusively focused on the companies taking the bets—NOT their customers.
The Libertarian in me wonders why the government wanted to pass laws making something illegal to thwart organized crime when they could have just as easily legalized and regulated the activity.
When something is legal, organized crime doesn’t stand to make any money from it.
Don’t believe me?
Think about this:
Running numbers used to be a huge source of income for local organized crime figures. Running numbers was basically just a private lottery run by local crime figures.
Since the lottery is now legalized and regulated in 48 states, you don’t find a lot of gangsters fooling with it. There’s too much competition.
Criminals like profitable businesses with minimal competition. Laws forbidding something just serves to squelch competitors, making those businesses more attractive to gangsters.
But I digress…
The only hold-up in most jurisdictions is to wait for the state government to pass the appropriate laws legalizing and regulating sports book activities.
The Various Kinds of Sports Bets You Can Make
Earlier in this post I explained the most basic kind of bet you can make on a football game, where there’s a point spread and you win (almost) the same amount you risk when you bet. That’s called “spread betting.”
But that’s only one way to bet on sports.
It’s not even the most common type of sports bet worldwide.
In this section, I’d like to cover some of the other kinds of sports bets you can make.
The main other type of wager you can make is called a “moneyline wager.” In this kind of bet, to win, your team has to win outright.
The book makes up for this by changing how much you must risk and how much you win.
A bet on a favorite requires you to risk more money to win $100.
A bet on an underdog describes how much money you win when you risk $100.
Here’s an example:
The Cowboys are playing the Browns, and the Browns are listed as +300. Since there’s a + sign, we know that this is the amount you’ll win on a $100 bet. The Browns are the underdog in this example, so you risk $100 to win $300.
If you wanted to take the other side and bet on the favorite, you might see the Cowboys listed as -300. This means that you risk losing $300, and if you win, you get $100.
You could also think of these as regular old odds. A bet on the Browns would pay off at 3 to 1 odds, while a bet on the Cowboys would pay off at 1 to 3 odds.
Those are the 2 main kinds of sports bets you can make:
- Spread bets
- Moneyline bets
But those aren’t the only kinds of sports bets available.
Not by a longshot.
More Interesting and Unusual Sports Betting Options
Another popular football bet that’s available (although it’s not limited to football) is the over/under bet, or the totals bet. This is a bet on the total number of points scored by both teams during a game.
For example, if the Cowboys beat the Browns 21 to 3, the total number of points scored by both teams during the game is 24 points.
The book has a guess as to what the score will be, and you can either bet that the teams will score more than that or less than that.
For example, in that Cowboys-Browns game, the book might offer the over/under at 23.5. If the total score were 23 or less, a bet on the under would win. If the total score were 24 or more, a bet on the over would win.
A proposition bet is a bet that something specific will happened during a game or during a season.
For example, a proposition bet might be a bet that a specific player will score the first touchdown of the game. Proposition bets are usually only good for entertainment; it’s tough to make money placing proposition bets.
A parlay can consist of 2 contests or more. You could theoretically bet on 15 games in a week, and if you got all the winners right, you’d have a huge payout.
Of course, these aren’t the only kinds of bets you can make, but they represent the most common types of sports bets most gamblers make.
The thing to keep in mind is that no matter what kind of bet you’re placing with a sports book, they have a vig built in. This might take the form of odds that are skewed in such a way that the book will make a profit.
Becoming a Sharp Sports Bettor
You can group sports bettors into 2 types:
- Sharps
- Squares
Sharps are sports bettors who use statistical information to only place bets where they have a positive expectation.
They win a high enough percentage of their bets that they show a profit—in spite of the vig. I’ll have more details about what it takes to accomplish that soon.
Squares, on the other hand, are the rest of the sports bettors. This is the general public, including your buddy who always bets on the Cowboys regardless of the line being offered.
Because of the vig, you can’t make a profit only winning 50% of your games.
Let’s look at the math:
You bet 200 football games this season, and you bet $100 on each game. You win 100 of those bets, but you lose 100 of them, too.
You’re dealing with a typical sportsbook that’s asking you to risk $110 to win $100.
A sharp sports bettor, on the other hand, will make a higher percentage of winning bets and a smaller percentage of losing bets. And it doesn’t take much of a difference to become profitable, either.
But sharp sports bettors still lose bets a lot of the time. In fact, a really good sharp might only be right 55% of the time.
How much does someone win in that situation?
That doesn’t sound like much, but when you think of it in terms of return on investment (ROI), it’s huge. Compare this with the kind of return you might see investing in the stock market.
If you’re investing in the stock market and seeing a 12% return over a year, you’re a superstar.
You might think that a difference of 12% and 5.5% isn’t such a big deal, but you’re not accounting for the time frame and the effect of compound interest.
12% over a year and 5.5% over a weekend are 2 entirely different things.
Think about it this way:
If you’re making 12% per year, you’ll double your money every 6 years.
Most investors would be thrilled with that kind of return.
But with a 5.5% return, you’ll double your money every 13 years.
You’re not seeing a 5.5% return every 13 years, though. You’re seeing a 5.5% return every week.
How much money would you make if you double your money every 13 weeks?
That’s mostly a single football season, so if you doubled your money every football season, you’d double your money every year.
Suppose you start with a $10,000 bankroll.
How long would it take to become a millionaire if you double your money every year?
- $10,000
- $20,000
- $40,000
- $80,000
- $160,000
- $320,000
- $640,000
- $1,280,000
That same $10,000 invested at 12% per year in the stock market becomes $20,000 by year 6—the same year our sharp sports betting made it up to $320,000.
Can you see now why someone might become interested in becoming a sharp sports bettor?
One criticism someone might point out with this plan is that it’s hard to find 200 bets per season offering value during the pro season.
That’s where that argument fails. You’ll find countless college games to bet on if you look, so 200 bets offering value per season is totally achievable for the dedicated sports bettor.
He probably had $300 on that game at 10 different books. He probably uses runners to place bets on his behalf so that the books don’t know exactly where the action came from.
As with most kinds of advantage gambling, there are all kinds of wrinkles involved in getting an edge at sports betting and making money from it. I’ve covered only a couple of them here.
As far as how to find bets that offer value?
The biggest piece of advice I can offer is to fade the general public. If the general public is doing one thing, the smart money is in doing the opposite. That tip by itself might be the most important sports betting tip you ever read.
Conclusion
Betting on sports is as American as apple pie, but it’s probably a surprise that it’s not more widely legal.
That’s going to change over the next decade, though, which represents a huge change in the environment of the hobby for U.S. citizens.
Finally, if I could leave you with one piece of advice—do everything you can to pay less vig. This might mean finding individuals who are willing to bet with you without requiring a vig. It might mean searching for bookmakers who are offering special deals.
I can’t overstate how important it is to pay as little vig as possible, though.
Do you bet on sports now? If not, do you think you might start after reading this post?
Why or why not?
This guide provides novice bettors with a proper introduction to sportsbetting. Covered topics include selecting a betting site, navigating the sportsbook interface, understanding betting markets, and the fundamentals of proper betting strategy. The goal of this article is to establish a strong foundation of betting knowledge to avoid the development of bad habits early on.
- 2Odds Formats
- 3Betting Markets
- 4Selecting a betting site
Sportsbetting Introduction
Sportsbettors attempt to predict the outcome of matches and wager accordingly. Bets are placed at sportsbooks which can be found in-person at casinos or online at betting sites. Later on we will discuss what you need to know about picking your first betting site. Sportsbooks take wagers on most sports however the ones that attract the largest amount of action are football, basketball, soccer, hockey, tennis, boxing, and MMA.
Odds Formats
Betting odds reveal how much money one would make relative to their initial risk if the bet were to win. The more likely an event is to occur the lower the odds will be. Winning such a bet would result in a smaller profit. These bets are referred to as having short odds. Consequently, the more unlikely an event is to occur the higher the odds will be. These wagers are said to have long odds, and would return a larger profit should they win.
It's important to note the difference between the terms betting lines and betting odds. Although sometimes used interchangeably, a betting line refers to the conditions that must be met for a wager to be graded as a win, while betting odds allows you to calculate the payout you will receive relative to the initial risk.
Odds are displayed in a variety of different formats. The frequency of use of each format varies throughout the world. Most modern sportsbooks allow you to select your preferred format. It may benefit you to learn different formats if you desire to communicate with other sportsbettors across the world. The three most common formats you will encounter are American odds, decimal odds, and fractional odds.
American odds
The American odds format is most frequently used in the United States. Positive and negative numbers indicate the profit a bet would yield relative to the initial risk. Negative odds display how much theoretical risk is required to net $100 profit. The more negative the odds the more likely an event is to occur. The LSU Tigers have -485 odds to win the game straight-up. A $485 risk would yield $100 in profit for a total return of $585.
| Team | Spread | Total | Moneyline | |
| LSU Tigers | -13.5 (-110) | Over 75.5 (-110) | -485 | |
| Oklahoma Sooners | +13.5 (-110) | Under 75.5 (-110) | +385 | |
Positive odds display the profit yielded by a theoretical $100 risk. The larger the positive number the less likely an event is to occur. The Oklahoma Sooners have +385 odds to win the game. Risking $100 would net $385 in profit for a return of $485. It's important not to confuse the positive and negative numbers of American odds with those of the spread.
The following table depicting the change-over between positive and negative American odds:
| American Odds | Risk | Profit | Return |
| -500 | $500 | $100 | $600 |
| -250 | $250 | $100 | $350 |
| -125 | $125 | $100 | $225 |
| -110 | $110 | $100 | $210 |
| -105 | $105 | $100 | $205 |
| -101 | $101 | $100 | $201 |
| +100 | $100 | $100 | $200 |
| +101 | $100 | $101 | $201 |
| +105 | $100 | $105 | $205 |
| +110 | $100 | $110 | $210 |
| +125 | $100 | $125 | $225 |
| +250 | $100 | $250 | $350 |
| +500 | $100 | $500 | $600 |
Decimal odds
The decimal odds format is used in Europe, Canada, and Australia. Betting odds are displayed as decimal numbers. Multiplying the initial risk by the decimal odds reveals the total return (which includes both risk and profit). The smaller the decimal odds the more likely an event is to occur. The Montreal Canadiens have 1.66 odds to win the match. Risking $300 on the Canadiens would yield a $498 return. Deducting the initial risk of $300 reveals that this bet would provide $198 in profit.
| Team | Puck Line | Total | Moneyline | |
| Montreal Canadiens | -1.5 (2.70) | Over 6.5 (1.91) | 1.66 | |
| Toronto Maple Leafs | +1.5 (1.50) | Under 6.5 (1.91) | 2.30 | |
Consequently the less likely an event is to occur the larger the decimal odds. Betting on the Toronto Maple Leafs at 2.30 odds would turn the same $300 risk into a $690 return for a profit of $390. The following table features some sample decimal odds and the calculations required to determine return and profit for a fixed $100 risk:
| Decimal Odds | Risk | Return Calculation | Profit Calculation |
| 1.20 | $100 | $100 x 1.20 = $120 | $120 - $100 = $20 |
| 1.50 | $100 | $100 x 1.50 = $150 | $150 - $100 = $50 |
| 1.91 | $100 | $100 x 1.91 = $191 | $191 - $100 = $91 |
| 2.00 | $100 | $100 x 2.00 = $200 | $200 - $100 = $100 |
| 2.10 | $100 | $100 x 2.10 = $210 | $210 - $100 = $110 |
| 2.50 | $100 | $100 x 2.50 = $250 | $250 - $100 = $150 |
| 3.00 | $100 | $100 x 3.00 = $300 | $300 - $100 = $200 |
| 5.00 | $100 | $100 x 5.00 = $500 | $500 - $100 = $400 |
Fractional odds
Fractional odds are less frequently used than American and Decimal. They are almost exclusively used when describing unlikely events which have long odds. Betting odds are displayed in the form of a reduced fraction. The profit of a bet is calculated by multiplying the initial risk by the fractional odds. This varies slightly from Decimal odds which displayed the total return instead. The smaller the fraction the more likely an event is to occur. The Los Angeles Lakers have 1/9 fractional odds to win the game. Multiplying a $300 risk by the 1/9 odds would reveal $100 profit.
| Team | Spread | Total | Moneyline | |
| Los Angeles Lakers | -11.5 (10/11) | Over 217.5 (10/11) | 1/9 | |
| Memphis Grizzlies | +11.5 (10/11) | Under 217.5 (10/11) | 6/1 | |
The larger the fraction the less likely an event is to occur resulting in a larger payout. The Memphis Grizzlies have 6/1 odds to win which means the same $300 risk now carries a potential $1,800 profit should they pull off the upset. Below are some sample calculations for various fractional odds based on a fixed $100 risk:
| Fractional Odds | Risk | Profit Calculation | Return Calculation |
| 1/4 | $100 | $100 x 1/4 = $25 | $25 + $100 = $125 |
| 1/2 | $100 | $100 x 1/2 = $50 | $50 + $100 = $150 |
| 10/11 | $100 | $100 x 10/11 = $91 | $91 + $100 = $191 |
| 1/1 | $100 | $100 x 1/1 = $100 | $$100 + $100 = $200 |
| 2/1 | $100 | $100 x 2/1 = $200 | $200 + $100 = $300 |
| 5/1 | $100 | $100 x 5/1 = $500 | $500 + $100 = $600 |
| 10/1 | $100 | $100 x 10/1 = $1,000 | $1,000 + $100 = $1,110 |
| 25/1 | $100 | $100 x 25/1 = $2,500 | $2,500 + $100 = $2,600 |
As previously mentioned fractional odds are mainly used to describe unlikely events such as which team will win their league championship. Stating that a team has 20/1 odds to win the title is easier to communicate compared to +2000 (American) or 21.00 (Decimal). Below are some sample NBA championship odds for some of the leagues' top teams:
| Team | Championship Odds | Risk | Profit |
| Los Angeles Clippers | 7/2 | $100 | $350 |
| Los Angeles Lakers | 7/2 | $100 | $350 |
| Milwaukee Bucks | 5/1 | $100 | $500 |
| Philadelphia 76ers | 15/2 | $100 | $750 |
| Houston Rockets | 8/1 | $100 | $800 |
| Denver Nuggets | 14/1 | $100 | $1,400 |
| Utah Jazz | 19/1 | $100 | $1,900 |
| Toronto Raptors | 21/1 | $100 | $2,100 |
Betting Markets
Betting markets are the different types of bets you can place on a game. The larger the sporting event the more betting markets are typically offered. The most frequent bets placed are moneylines, spreads, and totals. Betting markets may have different names depending on which part of the world you live in.
Moneyline
A moneyline is a bet on which team will win a given match outright. This term is most commonly used in North America, and is often given the abbreviation ML. Moneyline wagers are simple; if the team you bet on wins, your bet also wins.
Moneyline betting markets are normally written with just the betting odds (which determine the payout you will receive relative to your initial risk). In the example below the New England Patriots' moneyline is -180. This is American odds, and means a $180 bet will yield $100 profit for a total return of $280 if the Patriots were to win the game straight-up.
| Team | Spread | Total | Moneyline | |
| New England Patriots | -3.5 (-110) | Over 44.5 (-110) | -180 | |
| Baltimore Ravens | +3.5 (-110) | Under 44.5 (-110) | +160 | |
The moneyline market in Europe is often referred to as 12 (pronounced one-two). This indicates that there is two possible outcomes for the bet; 1 implies the home team winning, and 2 the away team. These markets include overtime. In the event that the match ends in a draw, bets will be refunded.
It is important not to confuse the two-way moneyline described above with the entirely different three-way moneyline. The latter does not
| Market | Abbreviation | Definition |
| Moneyline | ML or 12 | A bet on which team will win a match straight-up. |
| Total | O/U | A bet on if the combined total points or goals scored by both competing teams will be over or under a fixed number. |
Selecting a betting site
When you are ready to pick a betting site first consider which ones are available in your country or state. Most sportsbooks restrict access to residents in certain parts of the world. Betting Wiki lists the available countries on each sportsbook's respective page. Once you have comprised a list of possible sites
Here is a concise list of steps to take when choosing your first betting site:
- Create a list of every betting site available in your country or state.
- Research each site's reputation to ensure they are legitimate.
- Check which sportsbooks offer your preferred deposit and withdrawal methods.
- Determine if the betting site offers sharp or square lines.
Sports Betting Websites
Availability
Many online sportsbooks only accept customers from certain countries (or states). The first step to choosing a betting site is to draft a list of eligible options available in your region.
Betting Wiki includes a table of available countries on each sportsbook's respective wiki page:
| Example Sportsbook Availability by Country | |||||
|---|---|---|---|---|---|
| Albania | Australia | Austria | |||
| Belarus | Belgium | Bosnia | |||
| Bulgaria | Canada | China | |||
| Croatia | Czechia | Denmark | |||
| Estonia | Finland | France | |||
| Germany | Greece | Hungary | |||
| Iceland | Ireland | Italy | |||
| Japan | Latvia | Lithuania | |||
| Macedonia | Mexico | Moldova | |||
| Montenegro | Netherlands | New Zealand | |||
| Norway | Poland | Portugal | |||
| Romania | Russia | Serbia | |||
| Singapore | Slovakia | Slovenia | |||
| Spain | Sweden | Switzerland | |||
| Ukraine | United Kingdom | United States | |||
Reputation
Only use betting sites that have a clean reputation. Researching the history of a sportsbook will reveal any past incidents that have occurred. Betting Wiki aims to list any concerning events in the history section of a sportsbook's respective wiki page.
Deposits
Each betting site offers customers different ways of funding their accounts. Most sportsbooks accept credit card deposits, while others offer convenient alternatives such as direct bank transfers and cryptocurrency. Before deciding on a betting site ensure that your desired deposit method is offered. Bettors should also make themselves aware of any limits or additional processing fees associated with that payment option.
Intro To Sports Betting Parlay
Betting Wiki maintains an updated table on each sportsbook's wiki page displaying offered deposit methods, minimum and maximum limits, as well as processing fees.
| Example Sportsbook Deposit Methods (USD) | |||||
|---|---|---|---|---|---|
| Method | Min | Max | Fee | ||
| VISA | $45 | $2,500 | None | ||
| MasterCard | $45 | $2,500 | None | ||
| MoneyGram | $100 | $500 | None | ||
| eCheck | $100 | $5,000 | None | ||
| e-Transfer | $250 | $1,000 | None | ||
| Bitcoin | $45 | No limit | None | ||
| Bitcoin Cash | $45 | No limit | None | ||
| Litecoin | $45 | No limit | None | ||
Withdrawals
Before proceeding to make a deposit it is crucial that bettors are aware of a sportsbook's withdrawal policies. Verify that your preferred payout method is offered. Similar to the previous section it is also important to note the fees, processing time, and limits associated with each withdrawal option.
Detailed information on a sportsbook's withdrawal options will be made available on their wiki page:
| Example Sportsbook Withdrawal Methods (USD) | |||||
|---|---|---|---|---|---|
| Method | Min | Max | Fee | Process Time | |
| Bitcoin | $25 | $5,000 | None | 2 hours | |
| Bank Wire | $500 | $5,000 | None | 1 week | |
| eCheck | $50 | $3,000 | None | 1 week | |
Sharp or Square
The last criteria to evaluate is whether a betting site offers square or sharp odds. It helps to first understand how oddsmakers set betting lines. Although simplified, a sportsbook desires to have an equal amount of money staked on both sides of a given market. This guarantees profit as a result of the bookmaker's commission (known as vig).
Let's look at an example match to illustrate this concept. A moneyline bet is a wager on which team will win the match. The Baltimore Ravens and New England Patriots both have the same odds of winning at -110. For those not familiar with American odds, this means a $110 risk would yield $100 profit for a total return of $210 if that team were to win.
| Team | Spread | Total | Moneyline | |
| New England Patriots | PK (-110) | Over 49.5 (-110) | -110 | |
| Baltimore Ravens | PK (-110) | Under 49.5 (-110) | -110 | |
Imagine that a betting site's customers wagered a combined $22,000 on this game's moneyline market. The ideal scenario for a bookmaker would be to have a total of $11,000 bet on the Patriots and $11,000 on the Ravens. In this scenario regardless of which team wins they will pay $10,000 to the winners and collect $11,000 from the losers for a net return of $1,000.
With this in mind one can see how oddsmakers must anticipate how their customers will perceive the lines they set. It is often not optimal for a sportsbook to set a line based strictly on the expected outcome determined by statistics. Bettors often believe certain teams are stronger or weaker than they actually are. In the previous example match assume that the math indicated that on average the Ravens would beat the Patriots by 3.5 points. At the time of writing this guide the Patriots are a team many people frequently bet on. Releasing a spread of 3.5 based strictly on the expected outcome would likely result in a distinct imbalance in money staked. Instead the spread is adjusted to 0.0 (PK) and both teams are given equal betting odds on the moneyline in order to attract net action to the other side.
While this has been simplified it provides enough foundation to define the concepts of square and sharp. These terms can be used to describe individual lines or entire betting sites. It's important to note that different sportsbooks offer different lines for the same match, adjusted for their respective customer base.
A square line is one that has a large deviation from the expected outcome. Oddsmakers adjust the line to make the side they expect a majority of their customers' action to be placed on less favourable. This is done to attract more bets to the other side in an attempt to achieve a balance of action.
Consequently, a sharp line is one that has a smaller deviation from the expected outcome. Betting lines are close to what statistics would indicate is the average outcome of the game (if it were to be played many times over a large sample size).
It is common for betting sites to exclusively deal sharp or square lines. This is dependent on their respective customer bases' betting habits. Square sportsbooks cater to recreational and novice gamblers. Inexperienced sportsbettors are generally more inclined to bet on the square side of a given market. To take advantage of this oddsmakers shift the line to make it less favorable to bet on. This works to attract more bets to the other side in order to achieve a balance. And if it were to fail, and a majority of bets are still placed on the square side of the game, those bettors would be at an increased disadvantage for having a worse line relative to those available at competing sportsbooks. Those paying close attention might ask themselves why experienced bettors with large bankrolls don't take advantage of square adjustments by betting on the other side. These square sportsbooks generally prevent knowledgable bettors from doing this by restricting access, offering low betting limits, and issuing dual lines.
Sharp betting sites generally have a more diverse customer base. Novice, intermediate, and experienced sportsbettors allow the site to issue lines that are closer to the expected outcome. Even if a large portion of novice and intermediate bettors take the square side, experienced bettors would balance it out by placing larger wagers on the other side.
Intro To Sports Betting
Sportsbook Interface
Sports Betting Online
Betting Habits
Glossary
Below is a list of common sportsbetting terms and their corresponding definitions. For a more detailed explanation as well as examples visit each term's respective wiki page.Glossary of Sportsbetting Terms