Whenever you tell someone that you bet on horse racing for a living, the first thing they say is “Really?” followed by “How much can you make from betting?”.
This is a question that also haunts those who are working towards making profits from their betting but haven’t got there yet. Tipsters are also often asked this question by their clients and so I thought that I would address this today!
My reply to the question is always the same, “How much can you invest?”.
The first mindset you have to jump over is that you are investing not gambling. As a professional sports bettor you are not in the business of gambling, you are in the business of making knowledge based risk investments.
The question that should be asked is “What is the potential return on investment?”. This shows that whoever is asking you the question is actually taking it seriously and can understand that sports betting is a form of investment.
So back to the question at hand. How much can you make from betting?
In my experience there are two types of bettors. The first type is a form studier, they get up early in the morning and as the papers settle down to work. They specialise in certain races and horses and they only work on those races and may spend an hour or more on each of them each day before the meeting begins. Then they settle down to work out how best to bet them when they can see what odds they get.
The form studier bettor is going to be placing only a few bets a day, maybe two or three at most, and is what most people imagine when they think of professional horse racing bettors. There is something slightly romantic about this image. These bettors can easily make 20%, 30%, 40% and more return on investment from their bets. They need more money in the bankroll because they are placing comparatively few bets and so these bets need to be larger.
The second type of bettor uses advanced statistics and automation. They spend months and years developing complex strategies and ratings. Once developed all these strategies are managed by computers that find the selections and bets very quickly. Whatever anybody says, computers cannot predict races as well as humans. But they can do it well enough and a lot faster. This means that these bettors can be placing 10, 20 or more bets per day but they are only make 5%, 6%, or 7% return on investment.
How can we use this knowledge ourselves?
We use this information whenever we are looking at our own strategies, systems or even if you are considering buying a system or using a tipster. It doesn’t matter what they quote in terms of odds or winners. The only things you need to ask are…
What is your long term ROI?
How many selections do you average a month?
With that information you can figure out if it is a good fit for you. For example if we have a service that is £30 per month, averages 100 bets and makes a 20% long term ROI then we know that…
We will be betting 100 units per month and making an average profit of 20 units. The service charge £30 so we need to be betting at least £2 per unit which will give us £40 profit per month, that is our £30 service charge and £10 profit.
If you ask the right questions then you can get the right answers!