Category: Sports Betting Margins

Sports Betting Margins

Sports betting margins refer to the margins that bookmakers put on the odds of games, by design to ensure that they make a profit.

When a bookmaker sets the odds for a market they estimate the probability of each outcome, e.g. in a market on a coin toss winner, the bookmaker will assume the probability of Team A winning is 50%.

To fund their operation, the bookmaker adjusts these odds downward to create a profit margin for the market.