There are so many betting and gambling companies out there that the number is becoming incredibly big. Many people find themselves asking how could so many companies have positive financial balance, that is, how they make profit. It is not an easy question to answer, but when answered, it helps you understand how gambling companies work.
The first thing to understand is that gambling companies exist for a long time and they have perfected their income system during all those years. If you think you are on a winning streak and you are taking money from a casino or a bookmaker, rest assured – somebody else is on a winning streak. Two very important things work into the gambling companies’ favor: probability and mathematics. Probability is reflected in fixed odds that appear in sports betting. They represent the winning and losing probability. However, it is not clean probability, as the gambling companies skew the odds a little bit to work in their favor. Even if they lose a couple of times, they win in the long run. This is where maths kick in. Everything is calculated and thought of – even when you see odds that you think are a gift to players.
But even if the earnings from the usual fixed odds betting fail to roll in, there is something that always makes profit for the gambling companies. Commission based earnings in casinos level any losses that might happen otherwise and turn the scales pretty quickly to generate great amounts of money to the gambling companies. Since luck plays a major role in many casino betting platforms, it is to be expected that commission-based earning will rake in all the “bad-luck” bettors’ money. And even if eliminate luck and turn to skill-governed games such as poker, there are far more less-than-average-skilled players than players who spend time learning poker strategies and math. Even those players sometimes have to rely on luck, which again shows that gambling companies never lose.
Another way that gambling companies are making profit is by politely deceiving you by giving odds and games that look easily predictable. However, either through insider info or by careful analysis, they know the game will be much more difficult to guess. This often happens with the handicap bets which are very attractive for newbie bettors. They think they can make easy money by betting on the incredibly handicap that their team will win with more than 7 points, for example. However, this number wasn’t just pulled out of hat – it was carefully calculated so as to work in the bookmaker’s favor. The fans, especially the fans who are led by their devotion and loyalty to their team, do not think about it that way, since they are confident their team will stomp the opponent. The outcome is usually in favor of the gambling company.
If there are any lessons to be drawn from this, it is to be careful of bets and games that seem too good to be true – they usually are!