I have mention earlier that one of my revenue streams was sports betting.
The first association most people get with sports betting is that it is gambling and per definition the house ALWAYS wins.
This is mostly true but there is a difference between the traditional gambler and the person who invests in sports betting. The sports betting investor can in many ways be compared to the professional day trader or poker player. Every single bet is placed where there there is an edge compared to the marked expectations and the odds on the event. Proper money management is essential also. Exactly the same goes with day trading. The day trader takes a short term position where it is expected that the probability of increase in price is larger than the probability of a decrease.
Why sports betting is interesting as a money project?
Most my money is placed in dividend stocks and apartments. So there are not that much extra cash to invest. This is where sports betting is very interesting, same goes for poker and probably also day trading (I have never tried this).
You don´t really need that much cash!
There are 1000s of matches every week, so betting/investing in a particual sports event is very short term. Here is an example:
- You wager on 20 matches a week. All these matches are played that particular week.
- €100 per match.
- The €100 represents 2% of your bank roll (fairly conservative), so total bank roll is €5000
- You expect a 105% yield on wagered bets
- 1040 matches per year
- Total investment per year: €100.400
- Expected profits: €5200
- ROI on investment (start bank roll): 104%!
For good manament of bookmarker accounts you will not need to have your whole bankroll deposited at the bookmakers. You probably just need a maximum of €2000 in use at one time.
Achieving a 105% yield is extremely difficult and will take a lot of time investigation matches etc. The top sports bettors have a yield of 105-110% every year.
I don´t have the time or knowledge to find good matches. I have instead investigated different betting tips sites for good tipsters and found a number of experts who have a long track record of profit. Their predictions are followed almost blindly.
8-10 different bookmakers are used to ensure best odds on the events wagered on. Most bookmakers have sign up bonuses, which can be quite significante – especially in the beginning.
Progress so far (started 5. August 2016).
- Wagered on 214 events
- Wagered a total of €9.011
- Won 121 bets
- Lost 90
- Profit before sign up bonuses: €972
- Yield: 111%
- Profit from sign up bonuses: $691
Most notable is of cause that the yield has been 111%. I hoped for 105% and cannot expect that 111% will continue over time.
Bonuses from bookmakers will be much lower going forward.
Learnings so far:
- I try not to follow progress every day. There are many ups and downs. Many matches are decided in last minuts etc. hence can be stressfull.
- Following bank roll management is essential, and I will keep paying conservative and will first consider increasing bet size when I have doubled my bankroll (€2000 in profit).
- I type down all bets into a spreadsheet every 2 weeks.
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