Ever wondered how casinos earn money? Most individuals realise that a gaming site gets money when bettors lose. But if punters win, the bookmaker loses… They do? Many assume online gambling sites win or lose like their users. But that isn’t the case. These gambling sites are businesses. They exist to make money.
Let’s examine how gambling sites make money.
The vigorish or the “vig” is the major source of revenue for gambling sites. It is the site’s commission on losing bets. -110 is a popular betting odds. To win $100, you must wager $110. The gambling sites will profit if they obtain equal money on both sides of the contest.
For example, a $220,000 handle comes from a $110,000 wager on the home team and another $110,000 on the visiting side. To reward individuals who bet on the home team, the site will give out $100,000 plus return their $110,000 bets. $10,000 ($220,000 – $210,000) remains. That’s the vig or the casino’s portion.
So many bets on a single game or event. Statista estimates the online gaming market at $45.8 billion in 2017 and $94 billion in 2024. That’s a substantial sum of money.
An ideal world would see balanced action on both sides of each market. If both sides bet the same amount, they will split the vig. Here’s an example. But this isn’t always the case. In many cases, one side sees a lot of action while the other sees little to none. If this happens, the gambling sites try to sway the action by lowering the odds for the side that needs it.
If betting on Team A is heavy, it will cut its odds to discourage betting. If movement is slow on Team B, the betting companies will increase the odds to entice gamblers to wager on Team B.
The books may not be balanced at the end of the betting period. On the other hand, the books are always tipped in favour of the gambling sites.
There are two types of online gamblers: squares and sharps. And now for the two. The squares are recreational bettors. They bet casually. The betting “public” is made up of the bulk of bettors. Conversely, sharps are the industry’s smart men. These are seasoned gamblers with years of expertise.
Online casinos know who the sharps are by their record of big bets and high wins. Gambling sites often modify odds to deter the public from following massive bets made by sharps. Another technique to balance the books.
Remember that betting sites have wagering limits. These were put in place to protect the house from sharp bettors. This will help gambling sites like casino slots online Malaysia make more money and stay in business.