Bookmakers have been part of the gambling industry for centuries. Their origins date back to ancient civilizations such as the Greeks and the Romans.
At that time, gambling was often used as a form of entertainment during religious festivals, and bookmakers offered odds on the outcome of various events such as chariot races or gladiator fights.
The term bookmaker comes from the way bets were kept in the past, in a betting book. The person who keeps track of this and therefore offers the bets is a bookmaker.
The Emergence of Bookmakers
The modern concept of bookmaking dates back to the 18th century, when betting on horse racing in particular became popular in England, before becoming popular in the Arab countries later in the nineteenth century.
Bookmakers began offering bets on the outcome of races, with bettors betting on who they believed would win.
The odds offered by bookmakers reflected the probability of a particular outcome and were calculated based on many factors such as the form of the participants, track conditions and the performance of the jockey.
Over time, gambling on sports events has developed into a billion-dollar industry where you can place different types of bets on almost every sport.
Since the regulation of remote games of chance, this market has grown enormously in European countries. However, many countries are still in the “grey area” that haven’t legalized or prohibited online gambling such as Arab countries. Nevertheless, many famous brands focus on the Arabic market and localize their entire offer to Arab punters such as YYY Sport. This bookmaker, in particular, succeeded to attract Arab punters as it offers exclusive welcome bonuses for newcomers, supports the Arabic language, covers many betting markets, has a 24/7 support service, and has a mobile-optimized platform. This is more than any ordinary gambler could have ever dreamed of in traditional sports betting shops.
What many people may not immediately consider is that the odds are not based entirely on statistics. A bookmaker must ensure that the winners and losers remain more or less in balance so that the bet of the losers is large enough to pay out the prizes of the winners.
The calculation of odds is therefore a complex and dynamic process involving statistical analysis and mathematical models. Bookmakers use various methods to determine the odds for a particular event, such as analyzing historical data, taking into account the form and performance of the participants, and external factors that may affect the outcome of the event. The odds are then adjusted based on the amount wagered on each outcome to ensure a balanced book and minimize risk to the bookmaker.
How Are Odds Set By Bookmakers?
To understand how the odds can change, it’s important to understand how bookmakers make their money. Let’s take a classic horse race as an example.
If a bookmaker offers a 2/1 chance on a particular horse, they are essentially saying that the horse has a 33.3% chance of winning (since 2/1 is the same as 2 divided by 3). If the bookmaker takes equal bets of €10 on both the horse that wins and the horse that loses, they will collect a total of €20 in bets. If the horse wins, the bookmaker must pay out a total of $30 ($20 winnings plus the $10 bet), meaning they make a $10 profit. If the horse loses, the bookmaker keeps the $20 stake and makes a $10 profit.
However, if the bookmaker takes too much money on one outcome and not enough on the other, they can be exposed to significant risk. For example, if they take €50 in bets on the horse that wins, but only €10 on the horse that loses, they will have to pay out €150 if the horse wins (since they have to pay out €100 in winnings plus the €50 bet), but only receive €10 if the horse loses. To avoid this risk, bookmakers will adjust the odds to encourage more bets on the less popular outcome.
Therefore, the odds may change leading up to and during the event. If a lot of money is wagered on one outcome, the bookmaker can adjust the odds to encourage more bets on the other outcome. Also, if there is a sudden change in the external factors affecting the outcome of the event, the bookmaker can adjust the odds to reflect the changing probability.