Guide to calculating house profit margin


Betting Tips
Today’s football betting is not only an entertainment playground, but it is also an attractive investment channel loved and trusted by many sports enthusiasts. In another perspective, football betting is also a profitable business method for the bookies themselves. So, what is the house edge in football betting? If you do not really understand, let’s go with a betting site in Nigeria to find specific answers in the content of the article below!

Learn about the house’s profit margin

When it comes to online football betting, many people think that it is gambling with the house. What about reality? True, but not enough. The bookies were invented to act as a middleman in the games of many players.

If you pay attention, players can notice that the odds that the house offers and allows to be displayed on the rafters table are carefully calculated by the house, the player only has the right to choose from the list of odds. that. The goal of the house’s calculation and system is to maintain a reasonable balance between their own revenue and expenditure. Businesses always have to consider the issue of profit. So where do their profits come from? It is from the commissions that the house gets from the bets that the player participates in. It is also referred to as the house profit margin.

Guide to calculating house profit margin

Each different bookmaker will have a different way of calculating profit margin, depending on the bookmaker’s policy as well as the number of players participating in the bet. This explains why it is not possible to use one house’s profit margin calculation for another and vice versa. However, in general, there is still a general view of profit margin with a relative formula that players can refer to, specifically:

Margin = (1 : Odds 1 + 1 : Odds 2 + 1 : Odds 3…) – 1

For example, in a match between the Netherlands and France, if the odds of the Dutch hand is 3.6, the tie is 3.6 and the French hand is 1.8, then the profit margin is determined to be:

Margin = [(1/3.60) + (1/3.60) + (1/1.80)] – 1= 0.1111 = 11.11%

So the number 11.11% here is understood as the house’s profit margin. The house will receive 11% of the total bet that the player has spent.

Instructions for calculating the odds of winning Odds

Through the house’s profit margin number, players will also be able to calculate how much money they collect on each bet when winning.

Calculations will be applied according to the following formula:

Bonus Earned = 1 – Profit Margin

Example: If a player bets on a match between the Netherlands and France, the player chooses to bet on the Netherlands with the corresponding Odds of 97%. Accordingly, if the Dutch team wins and the player bets $100, the winning amount will be $97, the remaining $3 is the house’s profit margin. However, this ratio is not a fixed number, the house can change the bet.

Points to pay attention to when calculating profit margin

The bookmaker usually does not publish how the profit margin is calculated; it is their business secret. Therefore, the number we calculate is always relative, partly determining whether the house is a reputable bookie or not. At a reputable bookmaker, the house’s profit margin will fall between 10-15% of the player’s bet. If higher, players should be careful and should not deposit their bets with those bookies.


This article is a guide to calculating the house edge that we have painstakingly collected and systematized. Hopefully, it can help players gain more knowledge and understanding of the betting process. Wishing all players luck and success.

Leave a Comment

Your email address will not be published.

You may also like