What does a bookmaker do when too much money is placed on a specific event?

Question

I gather that the odds will drop orthe bookie may spread his risk, but if someone can be specific in their answer to what actually happens it would be greatly appreciated.

Answer 1

either move the line or the odds so the team not being bet on looks more attractive or "lay off" some bets which means the bookie bets with someone else so that he collects winnings on the team everyone is betting on also

Answer 2

Bookies will do one of two things.  The first is to move the line to encourage betting on the other side.  If they can keep the betting balanced, they can guarantee themselves a win by paying the winners with the losers.  The second is by "laying off" bets at other bookies. They make bets to cover any potential exposure with other, larger bookies.   In that way they spread the risk across the industry and reduce their own risk.

Smaller bookies will "lay off" bets with larger bookies in the same city or region.  Larger operations will have agents in Las Vegas to lay off bets in major casinos.  

If it a parimutuel event they also have agents to go to tracks to post bets that lower the payoff odds.

Answer 3

There is never too much money.  There may be too much placed on a specific 'side' of an event.  In this case the bookie will change the point spread or the payout in order to lure bettors to the side with the lesser amount of action.  This will help to equal out the two sides.  That is really the only option the house has.  If there is unequal amounts of action then the house is exposed and could potentially face a losing situation.  It does happen and the house absorbs it and moves on.  In the long run the house makes a profit.  That is why there are betting limits for individuals, if a person is highly skilled and does their research they can win consistently.  With betting limits however, the house is safe as there are enough players who 'think' they are highly skilled on the other side!  lol