Inside the Game: A Comprehensive Guide to Sportsbook Language for Operators

What betting site visitors typically see is just a surface of the platform activity. If an entrepreneur wants to set up a viable sportsbook site, it is obligatory to navigate a complex landscape of sophisticated mechanics and data analysis.

Smart Money is eager to introduce a detailed guide that simplifies the perception of all the terminology while preserving information saturation for businessmen. Order a turnkey sports betting project development from our experts.

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Systems of Odds

Since there are dozens of different disciplines, bookmakers came up with unique solutions to calculate the chance of winning and present them to punters. The rules for each sport are different, so there are separate data entries for managers to analyse. The combination of efficient information breakdown and the use of proper percentage maths allows for the creation of a convenient participation landscape.

There are 3 common systems of odds

Fractional:

• most commonly used in the UK and Ireland;
• usually depicted as 5/2.

Payout = bet * odds + bet

Decimal:

• most commonly favoured by the rest of the Europeans;
• usually depicted as 3.5.

Payout = bet * decimal odds

American:

• most commonly used in the US;
• usually depicted as positive or negative results;
• odds for an underdog stand as 250 (how much will be won with a $100 bet);
• odds for a favourite as -250 (how much needs to be wagered to win $100).

Payout = odds + sum

In every case, the implied probability remains the same. The only thing that changes is the formula to calculate it.

Implied probability on the example of the same odds:

• Fractional (2 / (2+5) * 100 = 28.6%);
• Decimal ((1 / 3.5) * 100 = 28.6%);
• American (100 / (250 + 100) * 100 = 28.6%).

Profitability Mechanics

The betting business, just like any other commercial project, is designed to earn money. This is where an in-built advantage is hidden. But it is not actually concealed since it would look like a scam. An overround (also known as the vig or juice) is an added margin for bookmaker’s platforms that ensures their profitability even when a bettor wins a wager. The core principle here is to decrease the return rate on a favourite side and to increase it on an underdog.

Overround illustration on a coin flip:

• This event has only 2 results: heads or tails.
• The chances of both in an endless loop are 50%.
• If converted into the odds systems, these are 1/1, 2.0, or -100.
• To preserve the margin, operators indicate the chances as 5/6, 1.83, or -120.
• As a result, the implied probability is 54.5%, which sums up to 109%.
• This extra 9% covers the cost of any wins and grants profitability for a platform.

At the same time, if the vig is too large, there will be no interest in placing bets since payouts will be small. If the margin is not sufficient, the business losses will also be unbearable.

Bet Diversity

Punters always have a large selection on where to wager their funds due to numerous possible plays:

1. Moneyline. This is the most direct way to bet on a particular side. If 2 teams are playing, a punter will make a wager on one of them and wait for the result. The favourite will typically have smaller odds to encourage to bet on an underdog.
2. Handicaps. Another simple way of bidding, which also adds a small twist, implies a certain value of the result. For example, a spread of +2.5 in football will require a team to win by at least 3 goals for the wager to be successful (0.5 is used to eliminate draws).
3. Overs/unders. In this case, the overall score is important. A bookmaker will present the same Over and Under bets but with different coefficients. For example, the odds of a match to end with over 3 total goals is 5/4, and with less it is 6/9.
4. Specials. Prop bets are the most numerous on betting sites. They imply wagering on certain in-game events that are not connected to the actual outcome. For example, in football, these are a player’s yellow card, a number of individual goals, and even arguing with a referee.
5. Futures. These are long-term bets that imply predicting what team is likely to win the entire tournament. During the competition, odds are adjusted accordingly as a team or an individual progresses.
6. Accumulators. Also known as Parlays, these bets are extremely popular for their multiplying odds. However, they are also very difficult to win since all guesses must end up successful. Even if 1 out of 10 predictions is wrong, the entire parlay fails.
7. Progressive accumulators. These are similar to the previous type. However, a punter has a particular number of possible failures. In this case, the payout is smaller due to the chances of a mistake.

Sportsbook Data Feeds

Betting sites typically resort to the providers of information to grant efficient, relevant statistics that impact live odds.

There are 2 main sources of data that bookmakers use:

1. Official. In this case, clubs and leagues share information on their sites that directly reflect the events in matches. A downside of this source is a delay since live betting requires immediate updates to adjust the odds.
2. Unofficial. As all matches and events are publicly available, everybody can have access to information. Special companies that deal with the calculation and monitoring of stats provide immediate updates for efficient odd adjustments.

A beginner sportsbook owner will need substantial help in configuring the data feed and integrating it into the platform. Finding the balance between quality and swiftly updating the system as well as an affordable proposition is crucial to ensure the streamlined functioning of the project.

The Main Things about Running a Sportsbook Platform

While the terminology might be abundant, an entrepreneur should be aware of all the insides and outs of the niche before enrolling into the sphere. Understanding how betting mechanisms work will push businessmen towards the correct strategy of development.

Key highlights of the sportsbook terminology:

• There are 3 main systems of odds: fractional for the UK and Ireland, decimal for the rest of Europe, and American, mainly used in the US.
• An overround is an added margin for bookmaker’s platforms that ensures their profitability even when a bettor wins a wager.
• Moneyline, handicaps, overs/unders, specials, futures, regular and progressive accumulators are the common types of wagers.
• Sportsbook data feeds are integral for updating odds as fast as possible, with operators typically referring to online and offline sources.

Smart Money guides every client along this saturated world of sports betting and ensures the theoretical background is as developed as the platform itself. Order a turnkey bookmaker’s solution and become a knowledgeable business owner in the niche.

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