lose at sports betting

Why most football and sports bettors lose?

lose at sports bettingThere’s a difference between gambling and investing, both in the equity markets and in the sports markets (just look at the sports investing performance of some of the expert handicappers and the intelligent tips model). Though you don’t have to look to far to see people throwing money down on a hot penny stock tip, or worse yet, the Facebook IPO (which was manipulated by corporate and investment banker hype). Similar in the sports market, most sports bettors throw money down to either to make more money, or for the simple sheer excitement and high, like a drug some may say. And over time, it becomes a weekly ritual to bet on the weekend NFL games, or others sports throughout the year.

Having spent some time on the inside of the online sports gambling world with two major brands, both in sports, poker and casino, their was always the inside joke about about how to make losing money fun. The same applied to the sportsbook and it was widely known on the inside that ‘over time’ most sports bettors are going to lose money. Even if you won, the sportsbooks would be watching your account, offering reload bonuses in the book, or cross channel you into the poker or casino. Whatever it took to get you coming back to bet on another game, or play in another product channel, because we all knew that over time, you would lose.

In the sports market an estimate 91% of sports bettors will lose their money or bleed their bankroll over the course of the season or year. And its not that their betting on bad games, its the fact they cannot separate the emotional drug of the game and money riding on it, with a sound strategy to make money over time. Again – just like equity markets, over time and a sound strategy you can lower risk and come out with a higher return. The same applies to sports betting.

Why sports gamblers lose?

Sports gamblers lose their bankroll over the season not because of poor NFL picks or sports picks they may have purchased, or they keep selecting the wrong team. The key reasons sports gamblers lose over time is:

Picking the game winners is simply not enough. Even if you’re hitting just over 50% of your games, you can still lose, statistically speaking. There are far more sports bettors who can pick winners than there are who can make money, and money management is the key.

Why sports investing is the evolution in the sports market

When you hear of those individuals who made a fortune in the equity markets, the majority of them use a management firm to oversea their portfolio and advise on investment opportunities. These guys are in the market 24/7, and the investor pays a value for this. The management companies will perform all the data analysis on a stock, look at patterns, trends, statistics, micro and macro factors, geo-political environment and more. And ‘over time’, their investment portfolio shows the profitable results of their efforts.

The same applies to sports investing. For example, an expert NFL handicapper who plays the sports market for profession, should have a team behind them performing similar duties – statistical analysis, game and team match up trends and patterns, environmental impacts as new coaches, rookies or starting QB’s, etc. and monitoring the market odds for value.

As long as the expert NFL handicapper is doing his homework he should be lowering his risk, and getting higher returns over time. Part-time handicappers unlikely do this.

Similarly most sports bettors lose over time as they lack discipline in managing their bankroll and strategy. Simply betting $100 on one game and $500 on another statistically shows you’ll lose in the long run.

Anyone who is a sports investor must have apply management and strategy. Have a look at our sports investing portfolio tracker and you’ll see between expert handicappers in all sports (NFL, MLB, NBA, College, Soccer, etc.), the global consensus and our own intelligent prediction model, those with sound management and strategy will profit over time. Keep in mind that’s not to say there will not be losing days or even losing weeks, but sticking to a  strategy  and management philosophy that accommodates your risk tolerance will show profits over time.

Let’s look at two major sports where most of the sport bettors and investors money go; NFL and college football, and NBA and college basketball. In the long run, these two are felt as the most challenging sports to profit from in the long wrong. While MLB baseball is chased by many sport gamblers as well, measured by the betting dollar yard stick. Though from my experience on the inside with a sports book, nothing tops them all than NFL football in North America, and soccer in European markets. Though smart sports investors understand about diversifying portfolio and spreading risk by investing into other sports, and applying similar management and strategy. Even if they don’t completely understand the game, understanding key performance indicators to sports investing, they can still participate in these sports markets.

Whether your a sports fan, sports gambler or sports investor, thinking you can simply pick a winning team is not enough to profit over time from any sport, even with as much knowledge you have about the sport itself. There are numerous equity investors that may not know what a brand does or why their value chain or product value proposition is better than the competitors, they can still do extremely well investing in the company if they understand the metrics, have a strategy, understand value and proper management (ex. under valued stock, and an average down strategy even if they don’t buy at the bottom). The same applies to sports – you can profit well from NFL even if you don’t know all the players or sport itself as a die hard fan.

Bottom line, it is not one primary thing to becoming a winning sports bettor. Understand betting strategies, spotting value (odds), management and sound bankroll management put into practice, along with time and discipline, will help evolve your game to become a sports investor.

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