Betting Risks

Risks associated with betting

Whenever a bet is placed by a punter, he has to put at stake some amount of his own money. The size of the bet is based upon his budget or his emotional involvement with the sport or a team. If the bet is small, the impact on his bankroll remains insignificant irrespective of whether he wins or loses. If the punter places small bets all the time, the risk of losing all his money is not there. In fact, the probability of losing his bankroll completely is greatly reduced if knows how to beat the bookmaker. But if he does not have an edge over the bookmaker, the spectre of losing his entire bankroll looms over his head all the time.

On the flip side of the coin are the changes of growing the bankroll. Even if the punter has an edge over the bookie, smaller bets will bring in smaller profits and hence it will take time for the bankroll to grow. However, there is inherent danger of bigger bets as it can lead to bankruptcy if a few of the bets go wrong.

Let us understand this with an example. Say you have a bankroll of 30 Pounds. You then go on and place 3 bets of 10 Pounds each, Arsenal to win, Chelsea to win and Man City to win. But if your bet size was only 2 Pounds instead of 10 Pounds, you could have absorbed 15 such losses before meeting bankruptcy. This is something that is obvious to all punters but they continue to ignore this principle of risk management and place large bets based upon emotions and their beliefs. Also many punters are greedy and think that by placing larger amounts, they win more back but they don’t think about the losing consequences.

The allure of Overrounds spells doom for many punters. The punter knows that his chances of winning a double or treble bet are low as compared to his own individual selections. He is not able to understand the implications of long term risks as he is blinded by prospects of long term rewards.
If the punter does not have an edge over the bookie, he will lose not only singles but also Overrounds. But his losses are bigger with doubles and trebles, more than the combined losses of several singles. On the other hand, the same punter can make big money through doubles and trebles if he has an edge over the bookmaker.

Profit is in proportion to success margin in case of singles while it is square of success margin in case of doubles. This is why rewards for the punter increase wildly in case he wins a double or a treble. Doubles are recommended for a punter only when he has an edge over the bookie. He can then go for trebles also as his profits will cubes of profits from singles.

However, a punter should never become overconfident. Increasing the accumulator number can surely bring in huge profits for him but he needs to make sure that he has an edge over the bookmaker. In the absence of this edge, the same accumulator can make him lose money in large quantities. This is because the chances of losing a bet increase significantly when the odds are high. Punter should reduce the size of his bet when going for a double or treble to keep his loses under check. At best, he can keep the size of the bet same as he would keep for his singles. In the absence of such a strategy, the punter only increases his chances of bankruptcy.
It is therefore clear that the best method of reducing exposure to high risks is to reduce the size of the bets when going for doubles or trebles. Yes, this also means that the winnings for the punter are also reduced but it is always better to cover the risk of bankruptcy before thinking of gains. This is where a gambler needs to draw a line between the allure of bigger profits and the importance of control over risk.
Those who take big risks will appear to winning in short term but they also run the risk of reaching bankruptcy levels quickly. On the other hand, punters who show a sensible attitude seem to be earning less but they improve prospects of a long and rewarding career.
There may not be a sure shot method of guaranteed wins for a gambler but they can certainly enhance their security by adopting sound principles of risk management.