Bankroll Management: How to Properly Manage Your Sports Betting Money

In any form of gambling, bankroll management is key to long-term success. This is especially true in sports betting, where the margins are so thin. This blog post will discuss bankroll management strategies for successful sports betting. We will also look at some tips for managing your bankroll when betting on baseball. Ultimately it’s important that you have some sort of money management strategy in place when sports betting.

What is bankroll management?

Why is bankroll management important? Simply put, bankroll management is the act of managing your gambling money. This includes setting aside money for gambling and deciding how much to bet on each game. In sports betting, the margins are incredibly thin. After factoring in the standard -110 vig, the break-even point is 52.4%, and exceeding 60% of your sports wagers is extremely rare in a large sample. That implies a few percentage points, either way, can make all the difference between winning and losing in this scenario.

The bankroll in sports betting is distinct from the bankroll in real life. Money is typically your compensation for doing your job in the real world. You utilize that money to pay for items and services. You are rewarded with additional cash at the end of your wage period. It’s a circular process. In sports betting, the ability to increase income is only feasible using your existing funds. You won’t be able to create any more money without reloading your account if you’re too aggressive and your funds run out. As a result, it’s up to you to safeguard your savings and strive to expand them responsibly. That’s how bankroll management works. As they say, “you have to risk it for the biscuit.” This is especially true when it comes to betting on sports.

What is Vig in Sportsbetting?

The standard vig in sports betting is -110. That means you need to risk $110 to win $100. For the sportsbook to profit, they charge this fee on every bet. This is called the “vig.” To break even in sports betting, you need to win 52.4% of your bets. Anything above that, and you’re profitable. Anything below, and you’re losing money over the long term.

What is a betting unit?

A betting unit is the amount of money you’re comfortable betting on each game. Generally, a betting unit is 1% of your total bankroll. If you have an entire bankroll of $1,000, a conservative betting unit would be $10. If you were to place a 2-unit bet, you would wager $20. Your unit size is ultimately up to you; however, using 1-3% of your bankroll is considered a good rule.

How do I manage my bankroll when betting on baseball?

When managing your bankroll for baseball betting, there are a few things to keep in mind:

  1. It’s important to remember that baseball is a marathon, not a sprint. There are 2,430 games in a season, so it’s essential to be patient and not get too aggressive with your bets.
  2. Remember to do your homework and have a process you follow for each chance before placing a bet. There are a lot of factors that go into baseball betting, so you need to make sure you have all the information before making a wager.
  3. Don’t get too emotionally attached to your bets.

How Much Should I bet on baseball?

Gambling is a very high-risk activity. You should only risk what you can afford to lose. Following a structured process will help lower your risk, but it’s still gambling, and bad luck will strike at some point. Using a reproducible process to determine how much to bet will also help maximize your upside while minimizing risk. An example of calculating your bet sizing is to implement the Kelly Criterion. You can also implement a flat betting model to determine how much you should bet on each game.

How to Use Kelly Criterion for Baseball Bets

There are several bankroll management strategies that you can use to ensure long-term success in sports betting. One popular strategy is the Kelly Criterion. The Kelly Criterion is a bankroll management technique developed by J.L. Kelly Jr., a researcher at Bell Labs in the 1950s. The Kelly Criterion is based on maximizing your bankroll growth while minimizing your risk of ruin.

The Kelly Criterion is a formula that gives you a percentage to bet based on your edge and the bet’s odds.

For example, if you believe the probability that the Yankees will win is 55%, but the odds from the book are -110 (roughly a 52% probability), you have the edge over the sportsbook. Using the Kelly Criterion formula, you would wager approximately 5 units.

Something to consider is that the Kelly Criterion is only valuable so long as you trust your ability to calculate win probability. It also is a good idea to implement a fractional Kelly Criterion. This means that instead of betting the entire 5 units in the above example, you might only bet 1/10th of the suggestion or 0.5 units.

How to Use Flat Betting for Baseball

Over the long run, this is the most straightforward bankroll-management technique. You have to pick a unit size and then bet one unit for each wager. The odds, your current betting style, and your confidence level are effectively irrelevant. There are two flat betting methods: a “to win” and a “to wager” method.

What is a To Win Flat Betting Model?

If you’re going with the “to win” method, you’ll need to consider how much the vig is charging to win one unit. That means on a wager with standard -110 odds, you’ll need to risk 1.1 units to win 1.0 units. This is a simple rule because you wager just enough to win a single unit per bet.

What is a To Wager Flat Betting Model?

Suppose you’re going with the “to wager” (or “risk”) method. In that case, you don’t wager the additional units necessary to cover the vig. That means on a -110 bet, you would only be risking 1.0 units to win a return of 0.91. This method is even easier because you only bet 1.0 units regardless of the odds and your confidence. The risk with this method is that you ultimately need to pick more winners than losers since you’re not always getting the total return on your investment.