Unless there is something wrong with the weighting of your coin, there is 50/50 chance of it landing on heads or tails. The best way to explain value betting is to use the example of a coin toss. You’re basically doing the inverse of how bookmakers aim to make money from you.
Repeat this process over and over, and the bookmakers end up making a pretty decent buck! But what an effective value bettor is able to do, is to not only overcome the bookies margin but get better odds than the implied probability of something happening. But no, the bookies will offer you odds of 9/10 (1.90) or maybe lower, taking a 5% margin on the game. This means their betting odds should be at evens (1/1) or 2.00 in decimals. So say Manchester United are playing Arsenal, and the bookmakers have rated United’s chances of winning at around 50%. They make money because they take a margin on the odds of a game. An introduction to Value Bettingīefore I explain what value betting is, ask yourself: how do bookmakers make money? And no, it’s not because most people are terrible at predicting the outcome of a sports game. WHAT is value betting? Why is it important? We're delighted to have Alex Vella from Trademate Sports on WLB to decipher the industry's most commonly used term in detail, ‘Value Betting'.
