ROI & Yield – Sports Betting Economics

Betting Help

March 01,2024
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Bruce Williams

Understanding ROI and Yield in Sports Betting Economics

Sports betting often means different things to different bettors; not much thought needs to go into the betting process, and results are for people who only bet casually. However, if you take betting more seriously, you need to monitor your performance in the industry. That step is crucial because it is essentially the only way to accurately tell if you’re turning a profit or a loss with your gambling activity. The best performance indicators you can use for this critical task are Yield and ROI or Return on Investment. Using these metrics to monitor your progress throughout a specific period makes it easier to determine where you need to improve your betting exercises. Without further ado, here’s all you need to know to calculate these parameters efficiently.

How To Know Your Return On Investment (ROI) In Sports Betting

There are several ways you can calculate ROI, depending on the sport.

Sample 1

Let’s assume that you’ve been betting for a full year, and you want to calculate your ROI over this time. If you’ve bet with 200 units so far and you’ve made 40 units so far, you calculate your ROI like this;

(40/200) X 100 = 20%

Sample 2

Another approach you can take is to calculate your Return on Investment based on what you’ve lost so far. So, if in one year, you bet with 200 units and lost 20 units. Your ROI would be;

(-20/200) X 100 = -10%

This method is excellent for bettors who favor NBA, football, or horse racing.

How To Calculate Yield In Sports Betting

This metric helps you measure your rate of profit directly to that of your loss. Because of this, the metric allows you fully highlight your betting efficiency. Now, assuming that the funds in your bankroll at the start of the year was 100 units and after staking all-year-round, you have bet a total of 500 units and have a deficit of 10 teams; this is how you find your total yield for that duration;

(-10/500) X 100 = -2%

How Do You Know a Good Yield?

Whether you have a good yield after a certain period in betting will ultimately be determined by the number of bets used for the calculation. However, you should know that the more you bet, the harder it is to have a very high yield rate. With that, if you have a yield of more than 5% on more than 1 000 bets, then you have an excellent product, generally speaking.

In the end, even if you have a great yield rate, there’s no doubt that you can still get better. Exposing yourself to credible data from reliable sources can help you achieve this with ease.

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