Why Do People Bet Based On Expected Value?
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Why Do People Bet Based On Expected Value?
Date : February 16,2023
Author : David Bowie Categories :

Betting Based On Expected Value

For many people, sports betting is about more than just entertainment. It’s also a way to make money. And like any other activity where you’re trying to make money, it’s essential to understand and take advantage of the expected value. But how do you take advantage of something you don’t even understand? By taking steps to understand it first, of course. We’re here, don’t worry. And we’ll explain how you can use expected value to maximize wins and earn some dough.

What Is The Expected Value Of Sports Betting?

To help you understand the expected value, we need to take you back to school. We need to teach you mathematics. The term mathematics refers to the average outcome of a single mathematical problem. Simply put, the expected value helps you find out what you can expect over a long period. Let’s say you’re flipping a coin. Your expected value is 50% in the long run. You have a 50/50 chance every time you scan. The same thing goes for betting. The expected value gives you the average amount of money you can win in the long haul.  

Why Is Expected Value Important?

Betting is a risky business. You’re aware of that since you want to get into it seriously. But being aware isn’t enough. It would be best to take calculated risks to become a certified winner. That’s why expected value is so vital to so many people. If you find out that the expected value of a bet is pretty low, there’s no point in placing that bet. Yes, sometimes, betting on an underdog can pay off. But you can’t place bets with low expected value all the time and expect to stay profitable. No way. By cherry-picking your bets, you will be able to become a professional bettor with a lot of experience in just a few short years.

Expected Value Calculation And How To Bet

Now that you know what it is and why it matters, the time has come to determine how to calculate one. In this example, we’ll look at a hypothetical match between the Denver Broncos and New England patriots. When watching a football game, there are three possible outcomes every time: team A can win, team B can win, or the game could end in a draw. Once you have determined the possible outcomes, you need to assign a probability to each one. Let’s say that the Broncos are a 2-to-1 favorite, and the patriots are a 3-to-2 underdog. The odds of the game ending a draw are 9-to-1 in this case. To calculate the expected value, you must multiply each outcome by its probability and all these numbers. Here’s how we could do it for this game:

 (2 x 0.25) + (3 x 0.333) + (9 x 0.111) = 2.778

And there you have it, the expected value of our hypothetical game. If the number is positive, you can expect to win money on your bet. But if the number is negative, you better brace yourself and prepare for a loss.

In Conclusion

When getting into professional betting, you must know the risk involved. You need to be picky and choose only the bets with the most significant probability of making you money. As you know by now, the way of doing this is by calculating the expected value. The concept is a crucial part of sports betting. Be prepared to sit down for a few minutes to calculate the possible outcomes of your bet before putting any money into it. Add up all the numbers, calculate the expected value, and start making long-term money,

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