What is value betting?
If you are new to the world of sports betting, you might have heard of the term value betting. “There is value in 2.90 on fnatic”, “1.70 on Chelsea is too low and have no value”. But what does it mean?
A “Valuebet” is simply a bet where the odds is too high compared to the probability of that outcome. Value betting is the key to winning in sports betting, and without any value in your bets, you will always end up losing your money after some time.
Professional sportbettors only make value bets. They will bet on anything as long as they get too high odds compared to probability. If professional sportbettors calculate an outcome have 25% and they get 5.00 in odds, they will bet big. But if they would only get 3.50 on the same outcome, they will not invest anything, simply because it does not have any value. (or more correct, NegativeValue)
Coin toss example
In order to explain this a little bit better we will use the coin toss example.
First we will calculate the probability of the outcomes, and the chances are 50% Heads and 50% Tails. Using this formula to invert the calculations to odds: 1/50% = 2.00 (2.00 is the correct odds/probability calculated by us)
The bookmaker will also calculate the probability of this event. (they also calculate it 50%/50%). Using this formula to invert the calculations to odds: 1/50% = 2.00. As we already know that, the bookmakers add margin on their odds. Now bookmakers will give out their odds on their website. In this example they will have 1.90 – 1.90.
Open account on Pinnacle and start betting
Now its time for us calculate if their is any value in this bookmaker odds. The formula for this is very simple. We take bookmakers odds, divided by our odds. In this example: 1.90/2.00=0.95.
If this number is higher than 1.00. There is a positivevalue in the odds. You will make money in the long run placing this kind of bets.
If this number is less than 1.00. There is a negativevalue in the odds. You will lose money in the long run placing this kind of bets.
0.95 means that for every 1$ we bet, we get 0.95$ back in the long run. (we lose 5 cents for every $ we bet). This bet have negative value.
So for this cointoss example. We will need odds that is higher than 2.00 to get any value. If we dont get a odds above 2.00, we dont place any bet on this game since there is not any value on this cointoss.Open account on Pinnacle and start betting
And this is the secret to how Professional sportbettors make money on betting. Professional sportbettors calculate probability of sport events all day long. If they find an event/odds with positivevalue. They make a “valuebet” on that game. If they do not find value in a event, they dont bet on the event.
Professional sportbettors also use Pinnaclesports because they offers the highest odds in world. Because Professional sportbettors want to earn as much as possible on every bet.