Bitcoin Forum

Hi! I was just wondering... Is is possible that anyone can make a sportsbook with 1% house edge? I mean, it that would be possible it will provably attract many bettors.



What is your thoughts on this?

 ??? ???

Sportsbook has nothing to do with house edge I think because the odds is different for all the matches and it depends on their odds provider. Sportsbook is not the same game like usual dice or blackjack that has house edge  :)

Yeap.. It's not a house edge but a commission percentage.

As others have said they don't use house edges. They have way bigger odds of winning usually as it's harder to predict sports games but that's why each individual game or bet has it's own odds 2/1 evens etc.

yes there are so many sports book and you can make comparison among different providers,

http://bitcoin-betting-guide.com/odds-comparison-tables/

Sportbook and house edge? what do you mean?
house edge is in gambling for the probability that the house reserves to earn money

I'd be really interested to know this as well. Looking at the odds for a game, is is possible to know what the house edge (the average loss per bet) would be? Does anyone know?

You will find about the house edge calculation for sportsbook HERE (http://www.gambling666.com/online-sportsbooks/sports-betting-odds-and-probabilities) Henry. This article is quite good as it gives out few example of house edge depending of the odds of it but it doesnt state any formula to calculate it though (Still trying to find a live calculator to calculate the house edge depending on the odds )

P.S : the article is abit long to quote so those who wanted to read could head up there

you mean the juice
you can compare between all the books and pick the higher odds
cause everybook may offer high odds for some mathces and terrible odds for other matches
try to register in 3 books and pick the highest odds for the match u want to bet
it's hard to know if the odds is good
cause the math in sports still complicated
as I said u should just stick to the highest odds if u r interested in betting

Thanks arallmuus, that looks like a good source.

Having thought about it for a bit I think it must be a different concept than in a dice game. Computing the house edge of a dice game is simple:

house_edge = probability_to_lose * loss_size + probability_to_win * win_size
(for example in a standard 2x dice game where you bet 1btc: house_edge = 0.505*1 - 0.495*1 = 0.01 = 1%)

The problem in the sports betting context is that nobody knows what probability_to_win and probability_to_lose are. Will read your article and see if I understand.

I guess you mean the vig.

I dont see its happening because there is no need for them to do so. In reality, they can put up a 15-20% vig and majority of the degenerates would not notice.

It means the difference between total odds and 4, for example, houston rockets(2.21) vs clipper(1.74), the total odds is 3.95, the house edge: 4-3.95 =0.05, casino has 5% house edge for 2 teams, so 1 team has 2.5% house edge.

http://www.gambling666.com/online-sportsbooks/sports-betting-odds-and-probabilities

That link above is good,

"In a friendly bet with a peer, you might wager $10 in order to win $10. In this case, there is no house edge whatsoever, because there is no “house” involved. However, in the case of an online sportsbook, you will encounter a house edge. For example, you might need to wager $11 in order to win $10. This gives the sportsbook a house edge of approximately 4.54%. This is an example of a straight bet, in which you simply wager on the ultimate outcome of a game."

Why do this when people pay around 5% on most games and way way more on future bets and stuff like that?

People can earn money in long term although house edge is high, sport betting is predictable because strong teams have more probabilities to win.

Dice, blackjack, bacarat is random and not predictable, so the risk is high, although the house edge is much lower than sport betting.

And history stats can be used in analysis, it helps to win the money.

Do you mean casino with a 1% house edge ?
-Sportsbooks dont have house edge,thats just sports betting

More reason to not run this sportsbook with the 1% house edge. the only people this will attract are people you probably don't want to be betting against.

People are willing to play with a 5% or higher edge in sports, why offer less?

Sports betting is not really predictable though and if your analogy about favourites team has a lot more probabilites to win then yes it is true but somewhat it is not really different than the normal dice where you can set your chance to win to a maximum of 98 %

i.e Manchester United vs Burnley

Manchester United will have like 95% chance to win in which it is 1 out 20 matches will be win by Burnley (theoretically). the same thing to happen if you are doing a simple dice at 95 % chance

People just favor sports betting more because it is quite intense to cheers on their favourites team and on the same time bet on it to earn BTC  ;)


They have, read my post above

I don't think any sportsbook will offer such attractive odds.
Many people would then 'hedge' their bet if the odds are so attractive.
There would be lots of arbitrage and the sportsbook may lose money.