Imagine you have 100 thousand to invest and find a fund that allows you a return of 14% a year.
If you have a bank of 100 thousand divided into 40 units, you would have 2500 per unit. Therefore, throughout a season, if you had placed 304 bets, you would have placed 760 thousand in bets, which means betting 7,6 times the value of your bank.
Now imagine you have the same 14% ROI over 760 thousand…
Warning: All of the data presented here is part of a simulation. Moreover, the punter strategy I present is my own and is no guarantee of success, it's only how I operate in the market. Make no mistake between punter and trading markets, since the strategies to operate on each of these markets are completely different. In this article I always refer to the punter market.
Many people that invest on sports betting is unaware of this, but many may have heard about groups of investors that place bets on giant Asian bookmakers, such as IBC, ISN and Singbet. If you are one of such people you may have wondered why these investors bet millions in these markets. The answer is simple - money turn over. Another great advantage has to do with taxes, but I won' be getting into that in this article. I'm only interested on why sports betting is currently seen as such an attractive investment. Once again I remind you that this isn't the right investment for everyone, since it requires studying the market and having money to invest.
Now imagine you are an investor with 100 thousand to invest and find a fund that gives you a return of 14% a year (this is an illustrative example, but there are funds that will allow you similar returns). It may seem attractive to invest on something safe to get 14% a year. But with 100 thousand in bets you could have 14 thousand by the end of the next round, not a year. Therefore, imagine these 14% are your ROI (Return On Investment), that is, you'd be investing 100 thousand to win 14%. I'm not saying it's not a good investment, just that in sports betting you'd get interests in a much different way.
Imagine you are a punter in the football market and invest 100 thousand in 40 Units. You must understand that the examples I'm about to give you are just simulations.
In a normal season, you may bet safely on 2 leagues, with an average of 4 bets per round. In each league there are about 20 teams, playing home and away matches, so by the end of the season you'd have 76 rounds to bet on (38 per league). With 4 bets per round you would have placed 304 bets, with the unit values calculated initially. Once again, I remind you I'm talking about the punter market and not trading.
Hence, you would have placed 304 bets of 1 unit throughout the season, at 40 thousand a unit, you would have placed a total of 760 thousand in one year, instead of 100 thousand. Now imagine you get an ROI of 14% over these 760 thousand, that would give you a profit of 106.400 thousand. Do you see now why bets are so attractive? Now imagine you had placed more than the initial 100 thousand, or get an ROI of over 14%!
But this is a simulation. It doesn't mean you be betting 7,6 times your bank. The 760 thousand is the total of bets made throughout the season, calculated based on units as explained previously, which is how punters usually work. I hope I have made this point clear, because there are many who are new to the sports betting markets who don't understand this. Remember that punters have different strategies, this is how I work. About finding value bets, I didn't just discover this, everybody in sports betting knows this.
Getting back to my previous point, when you invest on sports betting you should understand that it's a long term investment and that you'll be betting a lot more than the initial bank value: these are the main points I'm trying to explain. Let me remind you once more that I'm talking about the punter market, not trading, in which you work with a stake and control how much your bank grows. When a trader tells you he has won 100% of his stake, he is referring to the liquid profit, so these are two different markets, which require different techniques and strategies. In the punter market, depending on your bank management, by the end of a season you'd have bet 2 or 3 times your initial bank value easily, since the more you turn over your money, the more you can win, even with a lower ROI. Most punters bet more than 3 times their initial bank value and place over 300 bets in one season. That's the advantage of football over other sports, since there are many leagues and football matches and many opportunities to find value bets. This money turn over depends on the strategy of the punter, since some prefer to divide the bank in many units and don't bet more than 3 times the value of their bank in one season.
I like to have many turn overs in one season. I usually have turn over my initial bank over 5 times, but that means knowing the teams very well and analysing many stats to find value bets.
To sum up, this money turnover is what makes sports betting so attractive and promising, since it allows you to bet a lot more than the money you have available. No every punter works this way, but I've decided to share with you how I work.
I hope you have enjoyed this article. Good bets everyone!