-110 [Post 10]

Sports Betting

Sports betting can be a fun way to stay engaged in a sporting event or satisfy your gambling itch, but it is statistically a poor way to accumulate capital for most people. Even a standard -110 bet is designed for you to lose in the long run.

What does -110 mean in sports betting?

If you are involved in the world of sports betting, you probably know what + and – mean in the American Odds system, but let’s catch our friends up to speed with some examples.

-110 bet means you need to place a $110 wager to win ~$100.

+110 bet means you need to place a $90 wager to win ~$100.

If a bet can be placed for -110 on either side of a contest, such as a football game, the bookmaker is ensured to make money if equal amounts of money flow to both sides. The difference collected by the bookmaker from paying the winners out less than they collect from the losers is called vigorish or “the juice”.

Super Bowl LVII alone is estimated to produce $16 billion in wagers. It is a great day to be a sportsbook if they anticipate collecting anywhere from 10 to 40% in commission.

Yakowicz, W. (2023, February 8). Sports gamblers expected to wager a record $16 billion on Super Bowl LVII. Forbes. https://www.forbes.com/sites/willyakowicz/2023/02/06/super-bowl-57-odds-best-prop-bets-same-game-parlays/?sh=301fc794d75a

(Photo by William Purnell/Icon Sportswire via Getty Images)

To beat the bookie over numerous -110 bets, you need to pick the winner more than 52.38% of the time - as that is your breakeven point.

Given you bet the same dollar amount each time, if you correctly pick 52 out of 100 bets at -110 odds, you still lose money overall.

To add insult to injury, the popular parlay bet only creates more juice for the sportsbook. A parlay is when multiple bets are combined into one. The potential payout rises but the odds of winning plummet and the sportsbook claims an increasing about of juice with every additional selection on the parlay.

Even after all this is stacked against you, if you happen to win big on a gamble, you will likely be subject to income tax on the earnings. Bummer.

Betting odds calculator & converter: The Action Network. Action Network. (2023).

https://www.actionnetwork.com/betting-calculators/betting-odds-calculator

Webber, M. R. (2022, December 20). Parlay bet: Definition, how it works, example. Investopedia.

https://www.investopedia.com/parlay-bet-5217711

Summary

Sportsbooks have a clear advantage (increasingly so on parlayed bets), tax is likely to apply to significant winnings, and it is human nature to let emotions hinder the situation further.

Overconfidence, chasing losses to recoup gains, personal biases, and more all fall under the emotional hinderance element in sports betting.

It is wise to limit gambling only to amounts you are willing to see fall to $0 and view the activity as “fun money” instead of wealth generation.

All else equal… you betting on the game tonight?