Arbitrage Betting Formula 1 – Part 3 – Sports Betting

Technology has always played a big part in affecting the outcome of a Formula 1 race. During the 60 years or so of its existence, the championship has seen advances in technology, although never forgetting the importance of the driver.

Two of the major innovations occurred during the early years – during the 1950s, Cooper’s revolutionary rear engine design led to two championship titles for Jack Brabham and in 1962, Lotus introduced their one piece chassis.

Technology developed rapidly during the 1970s and 80s and Formula 1 engineers began to be referred to as designers. The late 1970s saw the introduction of wings; and the early 1980s saw the widespread use of turbochargers.

Perhaps one of the most significant innovations was the so-called “ground effect” which used underbody design and side skirts, hugging the car to the ground. Improvements in design continue to play a big part in racing performance today. Several races are traditionally the highlights of the season. The Monaco Grand Prix which takes place through the winding streets of the principality is always exciting to watch.

At Monaco, the driver who gets pole position has an excellent chance of winning, as it is extremely difficult to overtake on the tight circuit. And in the UK, the British Grand Prix has become something of an institution since its inception in 1909, meaning a variety of betting options are available.

Sports betting is risky for the most part – many people who bet just occasionally are inexperienced and not knowledgeable. Many sports fans simply bet on their favorite team and often do not care too much whether they win or lose.

In fact, over 90% of people who bet on sporting events lose money; only a small percentage actually wins on a regular basis. However, there is a method of increasing the chances of winning, which is both easy and effective.

Getting an Edge in Sports Betting: Contrarian Sports Investing

Many people enjoy sports, and sports fans often enjoy placing wagers on the outcomes of sporting events. Most casual sports bettors lose money over time, creating a bad name for the sports betting industry. But what if we could “even the playing field?”

If we transform sports betting into a more business-like and professional endeavor, there is a higher likelihood that we can make the case for sports betting as an investment.

The Sports Marketplace as an Asset Class

How can we make the jump from gambling to investing? Working with a team of analysts, economists, and Wall Street professionals – we often toss the phrase “sports investing” around. But what makes something an “asset class?”

An asset class is often described as an investment with a marketplace – that has an inherent return. The sports betting world clearly has a marketplace – but what about a source of returns?

For instance, investors earn interest on bonds in exchange for lending money. Stockholders earn long-term returns by owning a portion of a company. Some economists say that “sports investors” have a built-in inherent return in the form of “risk transfer.” That is, sports investors can earn returns by helping provide liquidity and transferring risk amongst other sports marketplace participants (such as the betting public and sportsbooks).

Sports Investing Indicators

We can take this investing analogy a step further by studying the sports betting “marketplace.” Just like more traditional assets such as stocks and bonds are based on price, dividend yield, and interest rates – the sports marketplace “price” is based on point spreads or money line odds. These lines and odds change over time, just like stock prices rise and fall.

To further our goal of making sports gambling a more business-like endeavor, and to study the sports marketplace further, we collect several additional indicators. In particular, we collect public “betting percentages” to study “money flows” and sports marketplace activity. In addition, just as the financial headlines shout, “Stocks rally on heavy volume,” we also track the volume of betting activity in the sports gambling market.

Sports Marketplace Participants

Earlier, we discussed “risk transfer” and the sports marketplace participants. In the sports betting world, the sportsbooks serve a similar purpose as the investing world’s brokers and market-makers. They also sometimes act in manner similar to institutional investors.

In the investing world, the general public is known as the “small investor.” Similarly, the general public often makes small bets in the sports marketplace. The small bettor often bets with their heart, roots for their favorite teams, and has certain tendencies that can be exploited by other market participants.

“Sports investors” are participants who take on a similar role as a market-maker or institutional investor. Sports investors use a business-like approach to profit from sports betting. In effect, they take on a risk transfer role and are able to capture the inherent returns of the sports betting industry.

Contrarian Methods

How can we capture the inherent returns of the sports market? One method is to use a contrarian approach and bet against the public to capture value. This is one reason why we collect and study “betting percentages” from several major online sports books. Studying this data allows us to feel the pulse of the market action – and carve out the performance of the “general public.”

This, combined with point spread movement, and the “volume” of betting activity can give us an idea of what various participants are doing. Our research shows that the public, or “small bettors” – typically underperform in the sports betting industry. This, in turn, allows us to systematically capture value by using sports investing methods. Our goal is to apply a systematic and academic approach to the sports betting industry.

Sports & Gambling – Where Is Sportsmanship?

It was only a couple of thousand years ago that sports was culminated by the Romans when they had what they called their own version of the Olympic games. The progress of these games saw what we now have as the modern day Olympics.

Since then, many other sports have risen in popularity in modern times with the biggest being football which is followed by almost 2 billion followers around the world. Many of these sports have made millionaires of the players who excel and represent their sports in the international arena.

The most famous being Tiger Woods (#1 ranked golfer in the world) who has been proclaimed as the 1st billionaire sportsman since the beginning of sports.

There is also Michael Jordan (rated by many as the greatest basketball player of all times) who is a few hundred million short of becoming a billionaire himself.

With these players one cannot easily say that they have not performed 100% each time they go out and play. Looking at their performance record it would be more easy to say that they have excelled 90% of the times they have played. Being humans we all have our bad days due to illness, stress, family issues etc. Thus, the few substandard performances.

But there are sports that is so glaringly transparent that gambling has got a hold in their hallowed halls of management. The sport that I am talking about is FOOTBALL.

Take the recent World Cup for example. There were more than 20 incidences where a wrong call or no call by the referee or linesman made a critical difference to the outcome of the match. This would seem insignificant to most viewers except those who had bets on the outcome of the game. And it is the belief that at least 5% of viewers bet on the matches around the world. This would amount to 100 million viewers globally. If the value of each bet was $10 that would make the value of each match a cool $1 billion. There were more than 30 matches throughout the tournament. That’s more than $30 billion at stake. Astounding isn’t it. Just over a period of about 30 days.

You see, the mistakes that were made by the referee or linesmen could have been avoided if FIFA (world governing body for football) had agreed to install the video playback which is currently used by other sports like tennis and badminton. It takes only a few seconds for the playback verification. It also takes out the ‘unfair play’ factor. Joseph Blatter (FIFA chairman) has made a statement on ‘fair play and respect’. What fair play? Millions were lost to syndicates. So why the indifference by FIFA? Could it be that the gambling syndicates have their support even within FIFA???

This means that past history on football could very well have changed if video playback technology was implemented and I would like to recall that most famous incident involving Diego Maradona and his ‘hand of god’ incident against England. He scored with his hand which is in effect a foul. Not a goal.

Let’s take a look at one example, a top team playing with a team ranked in the 70s. The odds of the top team going through would probably be 3 or less to 1. That means whoever betted on the top team stands to win $30 or less if they had betted $10. If 10 million viewers did the same thing then the stake of the match would be about $300 million. It is very easy to BUY someone for let’s say $1 million when the stake is $300 million wouldn’t you agree? It is very hard as a human to ignore this kind of temptation when you earn about $100 to $200 per game (as in the case of the linesmen and referees and to not make a call at a critical stage during the match).

Let’s take a look at the same example but with a different betting stake. Most bets are on a variable stake. That means that the bet is broken down into several stakes. Take team A (top team) and team X (ranked 70s). The bet would look something like this:

Team A beat Team X = Odds are 3 to 1

Team A beat Team X by 1 goal = Odds are 3 to 1

Team A beat Team X by 2 goals = Odds are 5 to 1

Team A draws with Team X (90 minutes) = Odds are 10 to 1

So if there is a result where Team X beats Team A or draws with Team A (full match including overtime), it’s all profits for the syndicates.

There have been recorded incidences in the past about referees and linesmen being involved in match fixing. There were also recorded incidences in the past about football players being involved in match fixing. So with all this sordid history, wouldn’t you think FIFA would want to implement video playback technology? If they have not done so and are postponing this glaring truth technology you have to ask yourself why? WHY?

This would not even be considered if video playback technology was implemented.

Sports Betting Odds For the NBA

Betting in sports is enticing for any sports enthusiast; besides that it spices up the game even more with all those screaming bettors around you, it can be a rewarding leisure that boasts of lump sum of cash winnings. Nevertheless, what are the sports betting odds for something like the NBA?

If you based it on sports book, sports betting odds are generally unaffected or fixed. They say nothing can be done to effect change. But other sports enthusiasts believe otherwise. They consider the possibilities of maximizing the sports betting odds and successful chances to hit big time in sports betting, whether in the NBA or any other sport in the United States.

The first thing to consider is to have a sports betting system to rely on, which helps you sift through different games and identify where to bet best. By doing so, you have higher chances in sports betting odds by 97% for any NBA game. But still never bet your whole bankroll in one game. So how do you know which system works for your game?

There are online sports betting experts that can hand out pieces of advices that can assist you in every bet that you make on a game. Although they are not saying that by having a workable system, you are not liable anymore to losses in any game. There is risk wherever you are at, but having an effective system lowers your risk on terrible betting losses and increases your sports betting odds. These sports betting systems are good enough to be used universally, as long as sports betting are deemed legal.

Betting in games is so far not completely regarded as a legal form of gambling, because there are countries that still find such form as unethical and illegal in their state laws. Do we have to blame such states? No, despite their love for games such as the NBA, they find many of their people addicted to the idea of betting to the point of having to lose everything that his family has. This is where they draw the line for their laws, similar to restricting having casinos in their premises.

But it does not happen to everybody else; that is why in the United States sports betting is open and available. Drawing the line between addiction and balanced betting already depends on the hands of the bettor. Besides, sports betting has always been considered as a moneymaking opportunity for all citizens, without having to leave the comforts of your home or spend endless hours working at night.

If you want better sports betting odds in all NBA games, finding a good betting system is easy, so long as you pay enough attention to details being served on the internet. Upon taking hold of what you think should be your betting system, nothing can stop you from deserving successive wins in the games of betting. Well, of course, be reminded that it also takes some smarts to get ahead in every bet of every game.