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The investment in a betting game is the money placed to win a bet (for example $110 to win $100) and, if applicable, the cost of a sports service. The return on this investment is the net winnings or losses of that investment. ROI is calculated by taking the net winnings or losses and dividing by the amount invested. So, if you put up $110 to win $100 and win the bet, your ROI on that single bet is 90.9% ($100 / $110). So, if you have 100% win rate, your ROI is 90.9% However, a more realistic expected win rate over the course of a season is probably in the 50%-60% range. With a 10% vigorish, you need to hit 52.38% to break exactly even - an ROI of 0%. Here's the ROI at various win rates assuming a 110 risk to win 100:
50%: -4.55%
52%: -0.73%
54%: 3.09%
56%: 6.91%
58%: 10.73%
60%: 14.55%
62%: 18.36%
64%: 22.18%
66%: 26.00%
68%: 29.82%
70%: 33.64%
The timeframe for sports betting - Since most sporting event seasons are about six months, our benchmark, to do as well is really just a 5% return. A 57.6% winning percentage nets you exactly a 10% return. Basically, for every 1% increase in win percentage, you can expect a 1.9% increase in ROI. This example assumes you invest $110 to win $100. However, you can pay for a service to increase your winning percentage which you will need to add to the investment portion of the ROI calculation. Here's an example:
Let's assume you play $100 games and invest $750 for a season subscription to a sports service and you play five games per week (120 games in a season). Your investment per game has now increased $6.25 per game ($500/120 games). So you are now investing $116.25 to win $100 on each game. To break even now, you need a 53.76% winning percentage (versus 52.38% without a service) and a 59.1% rate to earn a 10% return (versus 57.6%). These calculations vary depending on the amount bet, number of games, and amount of the service. At these levels, if you believe a sports service can increase your winning percentage 2-3%, it makes sense to invest in the service. For example, if you paid $750 for a sports service that helped you go from 56% to 59%, the $750 investment in the service would result in additional winnings of $450. And, if a sports service could help you turn a losing season (50%) into a winning one (60%), the sports service investment would net you $1620 in winnings versus a $600 loss on your own ($2,220 difference). The less the sports service costs relative to the amount you bet, the better these numbers become and vice versa.
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| Author : mikeThe investment in a betting game is the money placed to win a bet (for example $110 to win $100) |
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