PDA

View Full Version : Bankrolling Question

J_Treez
11-12-2004, 05:45 AM
Ok, this is for informational purposes only, of course.

Let's say you were running a sports book, taking straight plays, parlays and teasers. The worst odds you'd be getting would be 11-10 on the straight plays(even money w/spreads), correct? If that's the case, how large a bankroll ,in relationship to the largest bet you'd take, would you need to absorb potential losses?

Reef
11-12-2004, 06:43 PM
If I'm getting this right, you're asking how much BR is necessary when you're a 52.4% favorite.

You would need a BR similar to a pro (card counting) blackjack player, which is pretty big. At a \$5-75 table, I'd like a \$2k bankroll.

pzhon
11-14-2004, 07:04 PM
If you set your lines perfectly (which is impossible), then you would need to worry about the fact that the results are not independent. Two people who bet on the same team are equivalent to one bet of twice the size, not two independent coin-tosses. Even if you set the lines perfectly, limiting the bet size is not enough. You need to limit the proportion of your bankroll that is wagered on one game without balancing wagers.

Of course, people will bet on both sides of the same game. However, if your lines are off, the problems will compound themselves. The action may be very lopsided and you may be the underdog.