Calculating Football Bookmaker Commission
Needless to say, there is no significant difference between what bookies used to do in the past and what they do today. Perhaps the biggest difference is that many bookmakers now operate online, giving their patrons greater flexibility. You may have already noticed that most interactive sportsbooks claim to offer the most advantageous odds. One of the most important things football fans should keep in mind is that bookies allow them to place wagers on a broad variety of markets and adjust the odds so they can secure a guaranteed profit, regardless of the outcome of the matchup.
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Bookmakers’ Margin Explained
It is essential to remember that these values vary between bookmakers, and sometimes the margin differs on the same event. Additionally, in an attempt to attract soccer fans, bookies tend to offer reduced juice on certain events, meaning they provide more favorable odds. Many soccer bettors mistakenly believe that odds are determined solely by a bookie’s assessment of which team is more likely to win. This is only partially true.
When bookies adjust the odds of a particular matchup, their main goal is to make the prices attractive enough so that bettors will wager on both sides of the market. They do this to balance their liability across possible outcomes. However, if the liability were perfectly balanced, bookies would not make any money. That is why they include a margin, ensuring they turn a profit even when the action is evenly split.
What is a Fair Market
Still, if we assume that the bookie you use allows you to bet on a coin toss but wants to earn a profit, the market percentage will exceed 100%. The amount above 100% represents the bookmaker’s margin, or the commission you pay for using its services.
In simple terms, the coin toss example shows how bookies operate. One of the most important things football bettors should remember is to always check the margin of the online bookie with which they have registered. This is critical because the margin directly affects the odds available and the potential profit you can earn.
Returning to the coin toss example, if the bookmaker offers odds of 1.90, a $10 stake would return $19. Your expected loss would be $1, which is how the bookmaker earns money.
How to Estimate the Market Margins
One of the factors that separates seasoned football bettors from newcomers is that experienced players understand the variations in margins between different bookies. Novice bettors should also learn how margins are calculated, because doing so reveals the relationship between the margin, the odds, and the profit they can achieve.
With that in mind, let’s calculate a margin. Do not worry about complicated math; the steps are straightforward. First, find the implied probability of each possible outcome. Suppose Juventus faces Napoli and the odds are 3.10 for Juventus, 2.30 for Napoli, and 3.30 for the draw. Divide 1 by each set of odds to obtain 0.322, 0.434, and 0.303 respectively. Add these numbers together to get 1.059, which means the market margin is 105.9%. Remember, this method works for a 1×2 market, where you can bet on either team to win or on a draw.
To calculate the margin for a two-way market, divide 1 by the odds for the first selection, do the same for the second, add the results together, and multiply the sum by 100. The final figure is the bookmaker’s margin.
How is Football Betting Commission Calculated
Therefore, the formula for the commission is ((stake x odds) – stake) x commission rate. Using the Barcelona example, it becomes (($100 x 1.97) – $100) x 0.04 = $3.88.
In this case, the commission is $3.88. Your profit would be $93.12, and your total return would be $193.12.
After you understand how commission is calculated, you may want to know how to find the true odds. As you probably know, posted odds rarely reflect your actual chance of winning. True odds represent your real probability of success.
Once the commission is known, finding the true odds is simple. Use the formula ((stake x odds) – commission) / stake. In our example, it is (($100 x 1.97) – 3.88) / $100 = 1.9312.
You can also use online calculators to estimate football bookmaker commissions in just a few clicks. Select your preferred odds format, enter the odds, and the tool will show the true odds, potential payout, and margin. Most calculators can handle both two-way and three-way markets.
Tracking Down the Best Markets
Compare the odds offered by several bookies and choose the most favorable prices. Even a small difference can affect your overall profit. By shopping for the best odds, you also reduce the commission the bookie effectively charges, which further improves your position. Margins can vary widely between bookmakers, leading to substantial differences in potential returns. Being aware of this will help you get the most out of each betting session.