Why do bookmakers always come out on top and win?

Question

They never seem to lose. What is the secret to being in profit all the time?

Answer 1

Here is the answer to the mystery!  It's not really a mystery, but this is a common question with bookmaking.  Erroneously, players think that sportsbooks actually care who wins or loses a particular contest.  The fact is that they make money either way.  Here's how it works.  In NFL football for instance there is a point spread right + or - a number of points to make it statistically 'even'  The payout from a sportsbook is typically $90 for every wager of $100.  You will see the odds posted like so, -110 or .90.  This means that in order to WIN $100 you really have to risk $110.  That extra $10 is called 'juice' or 'vig'.  The sportsbook ideally wants an equal amount of wagers, or action, on both sides of every contest so they can collect the 'juice' on all of the bets!  That's why you will see the point spread change throughout the week.  The bookmaker tries to entice players to choose the side with the lesser amount of action.

For example,

Team A  to win pays -110

Team B to win pays -110

There is a million dollars wagered on Team A

There is a million dollars wagered on Team B

Team A wins and the sportsbook has to payout a total of $900,000 to the players who wagered on Team A.

The bookmaker profits $100,000, the same profit is realized if team B were to win instead.

Answer 2

It's the juice.  Every loser pays a fee to gamble--and that's where they make their money.  Oddsmakers usually try to set things up so that there will be an equal payout regarless of outcome--if one team has five times the chance of winning, you want the odds or the spread on the underdog good enough that one out of five will pick the underdog.  Then the bookmaker will lose nothing, collect their percentage, and always win.

Answer 3

Once you read a scientific book on the odds, you will never gamble again.