Online betting for real money:
sportsbooks never make money by wagering against punters. All they do is only provide a platform for punters to wager. They make money by charging a commission on the sports wagers that they take. Below we shall explain how the sportsbooks use probability to manage and predict odds. There are some probabilities, which are easy to predict. However, the results of sports events are highly complex and they need a considerable amount of thought. Typically, the process will be undertaken by the employees of sportsbooks. They analyze the past results to predict the future outcome. These days this is outsourced to other companies
How does the sportsbook utilize the probabilities?
Bookmaking is also a business (like the other ones). They sell a product for more than its worth. And the bettor will have to buy it for the selling price. Now consider a toss of a coin. We all know that the probability of heads or tails is 0.5 or odds of minus hundred. One would bet a hundred dollars to win a hundred dollars in the opinion that it was a fair bet.
The bookmaker is offering you unfair odds so that he can win the money from you in the long run:
Now just think that the bookmaker offered you odds of minus hundred and ten. He is offering you unfair odds so that he can win the money from you in the long run. This sportsbook offers odds on events, which are very less predictable and so in addition to making a long-term profit, it safeguards itself from the uncertainties that are inherent in predicting the probabilities in sports.
The premium that bookmaker applies to their odds (to ensure that they are unfair), which means that they do not reflect fair probabilities, is called juice or vigorish in North American parlance. The quantity of the premium will depend on many factors. However in simple terms, the juice might give some protection to the sportsbook and when the bettor places his bet, he is put at a disadvantage.