It’s very simple. The bookmaker evaluates the possibilities of each particular result, and exposes the odds, which are the values expressed in number by which your bet is multiplied in case of success.
Let’s say, for example, that the betting website offers betting on tennis to the match between Federer and Nadal. In tennis there can only be two possible outcomes, or the opponent a wins, or the opponent B wins. The betting website prepares its calculation of possibilities in this bet and proposes its quotas. In this example, Nadal is the clear favorite that will be more likely to win than Federer. With these data these quotas are offered:
- The victory of Nadal – 1.5
- The victory of Federer – 2.5
This means that if you correct the result of the winner, you multiply your bet by the corresponding quota. Keep in mind that the greater the probability of success, as the risk is lower, the fee is also lower, and vice versa. So, the job of the betting house is to calculate how to offer quotas so that those who lose the bet can compensate the payment of the profits of those who have been successful, regardless of the result really and making profits in all possibilities.
In these circumstances, what the betting website does is not assume any risk, and in addition, receive a guaranteed benefit regardless of the result. Because it is possible to have the bet in perfect balance on two possible outcomes, because most of them risk their money in favorites that when they lose compensates the rest of bets that are based on small amounts at less probable installments.
There is another important aspect that guarantees stable income on the betting website. Use a set of words to show what the coefficient of relative mathematical values really is. That is, they do not show the real value of the odds of each quota. What they do is always show a lower value of the quota than the real, to have a profit margin of their own.
Imagine, as an example, that in this tennis match between Nadal and Federer the odds of winning each are the same (50/50). In this case, the mathematical calculation of quota rates would look like this:
- The victory of Federer – 2.0
- The victory of Nadal – 2.0
But the house will offer you the installments according to your margin:
- The victory of Federer – 1.9
- The victory of Nadal – 1.9
Why is this done?
For example, Nuria and Juanjo each bet 1,000 euros on a different player, Nuria bet that Federer will win and Juanjo bet that Nadal will win. If the odds that the web of bets offered were the real ones of 2.0, it could not have benefits without importing the result of the game. That is to say, if Federer wins, Nuria would receive his benefits of 1000 euros and Juanjo would lose his 1000 euros wagered. One bet compensates the other and the betting website does not win anything or lose anything.
However, if the odds offered show a probability of winning of both athletes of 1.9, the player who wins the bet will receive 900 euros but the amount of the loser will be 1000 euros. That is, regardless of the outcome of events, the bookmaker will enter 100 euros of benefits on these two bets. The margin ratios that the betting houses use always guarantee a profit. It’s the only thing that casino betting houses look like. Also in that these work with mathematical advantages on the players in their calculations of the quotas.