Managing your sports betting bankroll is not too unlike managing your personal finances– it matters less how much you make and more how much you spend. Careful attention to your sports betting bankroll and implementation of a sound bankroll strategy can mean the difference between short-term disappointment and long-term profitability.
Your bankroll is the money you have earmarked for sports betting. This should be an amount of money you are comfortable losing. For purposes of this article, let's say that's $1,000. But that's only the first step, as you'll immediately be challenged with deciding how much of your bankroll to wager on a particular betting market. For that, you'll need a more calculated approach.
Common Bankroll Management Strategies
Now that it's clear that we need some kind of strategy, the question is which one? Check out these more common strategies to get a better idea of which one might work best for you.
By Percentage
The most popular way to determine the size of an individual wager is to calculate it as a percentage of your total bankroll. One easy strategy is to have five types of wagers from 1%-5% of your bankroll, and then size your bet based on how confident you are that the bet will hit. In other words, if it's a bet you're less confident in, then bet 1% of your bankroll ($10). But, if you're extremely confident, bet 5% of your bankroll ($50).
By Bet Amount
The main difference between breaking your bankroll down by bet amount versus percentage is that some might see percentage as a sliding scale. If you break your bankroll down by bet amount, then you stick with that regardless of whether you're up or down. If you start with $1000 and your bets are $10-$50, then you stick with those amounts whether you're ahead or down.
Kelly Criterion
The Kelly Criterion is a popular way among advanced bettors to optimize a bankroll. It's used by both bettors and stock traders to calculate how much they should be investing.
In short, this formula will have you calculate the probability of the win to determine your bet size. It works off of percentages of your bankroll and by converting the odds into probability of a win.
Our Recommendation
Our best recommendation is to use a flat betting system and have your biggest bet be 5% of your bankroll and one unit be at 1%. If you're starting with $1000, that means that one unit bet is at $10. If you really love a game, then bet as much as $50 but never more.
Three Common Mistakes That Will Sink Your Bankroll
1. Betting With Emotion
One of the biggest ways to bust your bankroll is to bet with emotion. The idea of having a money management system is that you always stay cool and calculated.
2. Betting Arbitrary Amounts
If you've decided that your one-unit play is $100 and your max bet will never be more than $500, then you have to stick to this system. Set up a system with guardrails, so that you stay on track.
3. Betting For Entertainment
Discipline is a linchpin in successful sports betting strategies. It will be tested every day and it's up to you to pass the test. Sharp bettors don't get sucked into entertainment betting.
Serious Bettors Need To Stick To A System
If you're doing this for fun and general entertainment, then you don't need to turn this into an arduous, time-sucking routine. However, if you're serious about being profitable, you need a system and you need to stick to it.
By selecting and following a proper bankroll management strategy, you can build a sustainable approach to sports betting that helps protect your investment while maximizing your potential returns.