While it may not be the sexiest topic, it is one of the most important aspects of a successful sports betting approach.
Sports betting has low margins. After taking into account the -110 Vig standard, the break-even point for sports betting is 52.38%. It is very rare to win more than 60% of your bets. This means that the difference between winning and losing is only a few percentage points.
This is why managing your bankroll is so important, even if you are not actually handicapping.
What Is Bankroll Management in Sports Betting?
Your sports betting bankroll differs from your real-life bankroll. Money is usually your reward for doing your job. Money is used to buy goods and services. At the end of each pay period, you are rewarded with money. It’s a cycle.
Your ability to earn more money in sports betting depends on how much you have. You won’t be able to generate extra income if you are too aggressive or if your bankroll decreases. It’s up to you to take care of your bankroll and grow it responsibly. This is bankroll management.
It’s important to consider that beating the bookmakers at sports betting is like a long-term effort. If you are too aggressive, the short-term variance can cause a serious financial hit to your bankroll. Success will only rise to the top if it’s maintained over a longer time.
How Much Should You Bet on Each Game?
We would all have huge bankrolls that would allow us to comfortably bet around 1% per bet in a perfect world.
This approach may not be the best for beginner players.
If you have a bankroll of €1,000, which isn’t a small amount of money, 1% equals €10 per bet. This is not the best way to start a hobby.
While it’s okay to be more aggressive with a smaller account, it’s better not to get over 5% of your total bankroll as a base bet. Anything above that is too risky.
The best middle ground is about 2.5%.
You can choose to go with 1% or 5% or anywhere in between. This amount is your standard “unit size”.
Bankroll Management Units in Sports Betting
Because it’s easier to compare your results with other bettors in sports betting, units are used. It doesn’t make sense to compare the winnings of different players with different bankrolls. For example, one player may have a bankroll of €10,000 while another player may have an account of €500. The player with the larger bankroll may have a worse record, but still make more money because of his volume.
A unit size is a way to calculate how much you can bet against your standard bet. A €100 unit would equal five units. If your bet is €500 and you have a unit size, that means you are up €500. This allows you to calculate how much you can win as your unit size increases.