We know that bookies take bets from gamblers, but how do they "know" the correct odds for an event to happen? If they don't lay the correct odds, then they would lose. What are some of the math theories involved in determining the odds of winning / losing. Lastly, how is risk tolerance (or spread) determined by the bookie?
2006-07-01 14:27:12 · 2 answers · asked by K 2 in Science & Mathematics ➔ Mathematics
but...
How do you know there will be 50/50 bettors from both sides, if you haven't put estimated those odds before bettors take their position? My question is on how to determine the odds to make 50/50 bettors on each side or the true odds of an event including volitities before the start of an event.
2006-07-01 14:40:35 · update #1
The correct odds are the combination of payout (like 3/2) or point difference (like 3.5 points in football or basketball) so that as close to 50% of the bettors will go with each side.
Bookies make money on their skim, not on who wins the game.
2006-07-01 14:35:33 · answer #1 · answered by Anonymous · 3⤊ 1⤋
I don't have the specifics, but I presume that they make odds by using past performance and the rate at which wagers are made. If they're smart, they'll have an additional factor thrown in to reduce their losses and bettors' wins.
2006-07-01 14:52:11 · answer #2 · answered by Ѕємι~Мαđ ŠçїєŋŧιѕТ 6 · 0⤊ 0⤋