Can someone explain the math behind how Bookies make money?

Question

I'm not really looking to become a bookie due to how illegal it is. But I am bit of a nerd and it fascinates the c**p out of me. To pass time at work , ill often try to see what amount of money placed where would have me win money regardless of outcome and i always end up losing on one side or best case i win money one way and break even the other.. Just wanna know how they do it.Thanks!

Answer 1

A bookie is just that.. He/She books stuff..They make their $ off of % of the bets (cheese) That's why there is a point spread. The bookie wants the same amount on each team. You bet $110.00 to win $200.00. Just before a game/race bookies are scrambling to get their bets even.. they want the amounts the same on each team. A horse race their working off the track odds which is around 22% house odds.. In other words the track takes 22% out of the betting pool and pays the rest (78%) to the winners..

Answer 2

Bookies, made their money from the "Juice"

They take 5% to 10% juice on the loosing bet.

So, if they balanced it out on both side, they get the "Juice"

So, the line is like bet $105 to win a $100 on both side.

Whichever side wins, bookies pay $100 to winner using $100 from the looser, keep $5 for himself.

  

Answer 3

Turn the odds into percentages by dividing into 100.

Then try to hold that percentage of money on each runner.

For example, a book designed to pay out 100 to the winner might look like this:

1/1 (hold 50) --- pay 100 if it wins

2/1 (hold 33) --- pay   99 if it wins

3/1 (hold 25) --- pay 100 if it wins

4/1 (hold 20) --- pay 100 if it wins

If you can lay each runner to the desired amount, you will be holding 128 and your biggest payout will be 100 so you win 28.

If you can't get enough money on a runner, you extend the odds.

If you are holding too much on a runner, you lay it off with another bookmaker.