To be the best pay per head bookie, you need to know how to set odds properly. Most sportsbooks operate by betting to a specific margin on various sporting events. For instance, most bookies price up to 107 percent on Premier League matches. However, they only do this when all variables are known.
When it comes to matches with unknown variables, most bookmakers bet up to around 120 percent. That way they are protected against bettors with better knowledge of the match. Although it is impossible to make the perfect book, a good bookie knows how to have an in-built margin in his favor.
Also, a bookie has the right to limit the size of the wagers he accepts. In fact, player management is an important aspect of how to become an online bookie. In addition, using the best online bookie software can help you manage your players’ accounts.
To set odds, a bookie must price up to the true chance of an event at 100 percent. Then he changes the prices for the specific margin he established for the event. For instance, let us consider a Brazil vs USA international football match.
To set the margin of the betting market, first list the implied probabilities for the result:
Brazil – 60.5 percent
Draw – 22.5 percent
USA – 17 percent
Implied Probability of Odds – 100 percent
However, most the bettors are rooting for Brazil. As a result, the bookie rests the margin to 107 percent:
Brazil to win at 1.54 – an implied probability of 64.74 percent
Draw at 4.22 – an implied probability of 24.08 percent
The USA to win at 5.40 – an implied probability of 18.19 percent
Total Implied Probability – 107 percent
Although Brazil likely wins the match and most bettors will bet for them, the bookie set the price at a right level. It will be beneficial for the sportsbook in the long run.