It is common knowledge that Sports bookmakers are making profits. After all, that is no surprise since they have a broad arsenal of tools that can put them in a mathematical profit. However, not all of them are only focused on pure profit. On the contrary, many bookies work with really small margins. Therefore, to obtain a better understanding of this, the Brokestorm team of betting experts created this comparative analysis of the European and Asian bookmakers. Also, this article provides some key information about why you should use Asian bookies.
Bookmakers Profit Margin – The Basics
To obtain a better understating of the two sets of bookmakers, you must understand the profit margin first. On that note, it is key to understand that the prospect of winning and losing with the bookie is always more like 56% in favour of the bookmaker. This gives an extra edge to the bookie and provides a steady profit in the long term for the bookmaker. And as you understand by now, it is called the bookmakers’ profit margin.
A supportive and realistic example can be seen through a simple tennis game in which both players have 50% chance to win the game. Therefore, the odds can be placed at 2.00 for each of the two players. But that is not the case, since the bookies place odds such as 1.85, or 1.90. So they will make a profit in the long term since the odds are in their favour. They are simply accepting the equal amount of bet volume on all of the outcomes of a certain game bet.
European Bookmakers vs. Asian Bookmakers
Asian bookmaker tends to adopt a sharp approach. What that means is that they achieve the profit margin (mentioned above) by accepting enough bets that will make their odds financially efficient.
In other words, their odds are the closest thing that reflects the probability of certain outcomes. That has a domino effect since it brings a high volume of bets which in turn gives them a lower profit margin. But ultimately a high turnover means profits in millions. So, when we are talking about turnover in millions, 2% margin still represents a big profit and happy bettors as well.
On the other side, the European bookmakers are working on a different principle. To be more specific, many of these bookies from the old continent are around the 10% margin. But that is not the case on every odd since their factual knowledge to back up with statistical data is limited. So, the ultimate result is unrealistic odds which is quite common among European bookies. Therefore, this is another reason why you should use Asian bookies.
The Bottom Line
All in all, bookmakers are in the business to make profits. And bettors placing wagers to make money. It is the art of the bet. However, no one has a god-given right to be the winning side. After all, not every time the bookmakers are successful. The main reason behind that is the professional bettors and tipsters who can calculate when an odd is wrong and profit from this, which is essentially what every punter is focused on. That is why you should use asian bookies.