ROI: What it Means to Sports Gambling and How it Works

ROI: What it Means to Sports Gambling and How it Works

Sports gambling is an investment and it is one that should be taken seriously. If you want to win money and it is your goal to continue winning money, then there are several critical factors to bear in mind before choosing to bet. The first and foremost concept that should be learned and adhered to at all times is the idea that you must be a fantastic financial planner. 

There are no excuses, there is simply not any other way to look at this activity, this hobby. You certainly didn’t start out your sports gambling career thinking “it’s ok if I win every once in a while, or occasionally. “I can deal with the losses”. Nine out of ten people do not think this way. You must think of gambling on sports just as if you were gambling on the stock market. The stock market is a gamble. You can invest with brokers advice, someone that knows Wall St. very well and knows how to steer you-his client, or you can invest on your own and with the knowledge of the market, that you yourself possess. Sports gambling is the same. You can either find a great broker or in this case-a handicapper, or you can do this process alone. Maybe you possess the knowledge to go on this journey alone and that’s perfect. If you do go this journey alone, you had better be disciplined and you had better be a topnotch financial planner. All the sports gambling knowledge in the world is meaningless if you have no idea how to manage your money. 


 

How Sportsbook Bonuses Work


Set a Budget:

•    Do not even think about sports gambling without a very solid budget plan. You must not only set a general sports gambling budget but then you must set budgets within that very budget.

•    Use a professional accounting software such as Intuit QuickBooks or Microsoft Excel. A program such as QuickBooks is a better idea for that fact that everything is automated; all the work is done for you. You simply input the data and the work is calculated. With a program like Excel, you will be doing the work and the goal here is to simplify your life, not complicate it.

•    When setting a budget, the first order of business is determining how much you want to spend on sports gambling. This, of course, is the entire premise of the budget! 

•    The question is often asked, how much can I set for a budget, is there a percentage of my income, so I base it on how much I earn per week, month or year? The answer is, absolutely none of that! You must set a working sports budget within your “life” budget. You should already have and maintain a working budget that involves the life you have, beyond sports gambling. A fantastic, working, and functional sports gambling budget is completely separate from your monthly budget. 

•    We have established that you already have a working budget within the life that you live now. That budget is based on how much you earn on a monthly basis. Within that budget are all of the monthly bills that you pay, and it includes food, housing, and transportation along with entertainment. Remember: this is a separate budget entirely from the sports gambling budget. 


How to Buy Points


•    Now, what you must do, is the math; how much money is left over? Whatever the amount is that’s left over, that is your free money to so whatever you choose to do with. If you are smart and you care about your future, you will save some of this money but again, it’s free money to you that is over and above your monthly budget. Within your monthly budget you may have already allotted an amount to savings and if so, that is a smart move. 

•    At this point, you have an undetermined amount of money to spend on sports gambling and you know what that amount is. For the sake of this conversation, we will say that the amount is $1,000. 

•    Now you must budget that $1,000 within the parameters of a working-monthly, sports gambling budget. You can approach this in a couple of different ways. The first approach is that you spend it however you want to spend it and when it’s gone, it’s gone! This is certainly not the recommended approach, but it is one way. You know that you have the $1,000 and it really doesn’t matter to you how it is spent or where it goes. If you are to use this approach, then you must not go over the budget. You can do whatever it is you want to do with that $1,000, you can spend it on one game, you can spend it on parlays or round robins, reverse action or the preseason or however you see fit, but when the money is gone, the money is gone. Be disciplined and do not spend one penny more; even if you spend the entire $1,000 on the first day of the month and now you have to wait for an entire month to go by until gambling again; stick to the rule!

Another approach to budgeting the $1,000, is to allow yourself $250 per week, if and when you win money, you take the winnings and stack it up in a “windfall” account. You must wait until you have won the $1,000 back before betting any money from the” windfall” account. Once you have won the $1,000 back; go hog wild or set a budget for that money and/or it goes to your savings or investment account. Should you get unlucky and lose the $250 allotted for the week, then you are done for that week. You must stick to the plan. Do not start “robbing Peter to pay Paul”. If in case you lose the $250 on Wednesday, then you must wait until Monday to start betting the next $250. 

There are literally hundreds of microscopic ways to budget and then budget within a budget when it comes to sports gambling. In the above example, we know that your budget is $1,000 per month and what’s important here is to not spend one penny over that $1,000. The number two but equally important factor in all of this; keep records of every wager that you made and know exactly where you are at with wins, losses, and ROI (Return on Investment). 


Learn more about how to bet


Now that we have talked about how to set a rock-solid budget and the importance of sticking to it and the importance of having a sports gambling plan; we are ready to talk further about the importance of ROI. What it means to you as a player and why you must factor it into your monthly-betting master plan.

What is ROI (Return on Investment)?

ROI is the amount of money that is won or lost on an investment, relative to the amount of money spent on said investment. This can be any investment, this is not exclusive to sports gambling. No matter what the investment may be ROI is ROI. Whether it be property, stocks, and bonds, mutual funds, or pork belly futures—ROI is ROI! What time frame that you the sports gambler choose to calculate ROI is completely up to you. You may calculate it daily, weekly, monthly or yearly. A friendly suggestion would be to calculate ROI every single week. Knowing exactly where you are with wins and losses goes hand in hand with knowing your ROI. You should know every week how much you have earned in profit or how much loss you have taken. Why is this important? It’s super important because betting is based largely on trends and if you are following trends that are leading you to continual losses, you must correct the trend or get out of the gambling game entirely. Never take your eye off the ball, remember, you are gambling for one ultimate reason; to win money. Gambling is a lot of fun until you start losing on a consistent basis! 

Calculating ROI

The formula for ROI is the return, divided by the cost of the amount spent. Let’s calculate player X’s ROI:

• Player X profited $103.00 for 10 bets of $100 each. This means that the total cost of player X’s investment was 10 x $100 = $1,000. So, player X’s ROI is $103.00 divided by $1000 = 0.103.

• We then multiply that number by 100 to turn it into a percentage and get player X’s final ROI of 10.3%. 


So You Want To Start Betting College Football? Here's What To Do


ROI may seem complicated and difficult but it’s not. It’s very simple and is a necessary step to take if you want to be a successful sports gambler. There is really only one way to make great money gambling sports, you must handicap the sports that you are gambling. You must be in the know, if you know very little about the players and/or teams that you are gambling on, then you are dead in the water from the very beginning. Handicapping involves many things and each sport is different. The way in which you handicap college football is certainly going to be different than how you will approach baseball or how you handicap Tiger Woods will be drastically different than how you prepare for and handicap The Golden State Warriors v. The Houston Rockets. Yes, we are stating the obvious here, because it is this important. 

There are certainly different ways to approach handicapping different sports and the rule of thumb for baseball is pitching, the standard in football is the quarterbacks and in hockey, the goalkeepers. There are a plethora of ways in which to handicap and you must either know them and follow them or you must buckle in and find a great handicapping service to help you. This is highly recommended and is pretty much necessary if you want to make money.