Bankroll Management for Sports Betting - Tips and Guide

Betting on your favourite sports at the top online bookmakers can be fun and exciting. But in order to have the best experience possible, you need to know how to manage your bankroll. 

Today, we’re going to look at sports betting bankroll management. We’ll explain everything you need to know about wagering carefully and strategically so that you can maximise your potential winnings. 

Ready to get started? Let’s dive straight in!

What is Bankroll Management?

Bankroll management is an important strategy used by punters to control wagering funds and maximise long-term profitability. 

With effective sports betting money management, you set a budget for betting, determine the appropriate amount to wager on each bet, and maintain discipline so that you don’t go over these limits. 

This disciplined approach helps ensure that betting remains a sustainable and enjoyable hobby.

Is bankroll management important?

In short, yes! Bankroll management is vital for anyone serious about sports betting. Without a proper gambling bankroll management strategy, even the most knowledgeable punter can quickly run out of funds and find themselves in a sticky situation, financially. 

In essence, good bankroll management is the foundation of responsible and successful sports betting

Setting Your Bankroll\

Determining a safe and sustainable bankroll of money is the first step in good bankroll
management. 

Your bankroll should be an amount of money set aside specifically for betting that you canafford to lose without impacting your financial well-being. 

Below, we’ve outlined how to set your bankroll responsibly.

Assess your financial situation

Before you set your bankroll, take a thorough look at your finances. Calculate your monthly income and expenses, and determine how much disposable income you have.

 Remember, your bankroll should come from your disposable income, not from money allocated for essential expenses like rent, bills, or savings.

Determine a comfortable amount

Decide on an amount that you feel comfortable with, one that won’t cause financial stress if lost. This amount varies for everyone, depending on individual financial situations and risk tolerance.

Set clear limits

Establish a maximum amount you’re willing to risk over a certain period, such as weekly or monthly. This helps prevent you from chasing losses or making impulsive bets.

Start small

If you’re new to sports betting, start with a smaller bankroll. As you gain more experience and confidence, you can gradually increase your bankroll within your financial limits.

Gamble responsibly

Always remember that sports betting should be treated as a form of entertainment, not a way to make money. Never use funds that are intended for other important purposes.

 If you find yourself struggling to manage your betting habits, seek help from responsible gambling resources.

Bet Sizing Strategies

To answer the question ‘how much of your bankroll should you bet?’, you need to consider that each bet is an important aspect of bankroll management. 

Various strategies can help you manage your bets effectively, minimising risks and maximising potential returns. Here are two popular methods.

Flat betting

Flat betting involves wagering the same amount on every bet, regardless of your confidence level or the odds. This method is straightforward and easy to implement.

Pros of flat betting

● Simplicity: Flat betting is easy to understand and execute, making it ideal for beginners
● Consistency: By betting the same amount each time, you reduce the risk of large
losses from individual bets
● Discipline: It encourages disciplined betting, preventing you from chasing losses with larger bets

Cons of flat betting

● Limited growth: Flat betting can limit your potential winnings, as you're not adjusting your bet size based on the perceived value of each wager
● Ignoring value: This method doesn't account for the varying confidence levels in
different bets, potentially missing out on opportunities to maximise profits

Kelly Criterion

The Kelly Criterion is a more advanced betting strategy that calculates the optimal bet size based on the perceived edge and the odds. The formula is: f = (bp – q) ÷ b
Here’s what each letter stands for:
● f is the bet size based on a percentage of your bankroll
● b is the bet’s decimal odds – 1 (e.g. 3.0 odds – 1 = 2)
● p is the probability of winning the wager (e.g. 45% chance = 0.45)
● q is the probability of losing the bet, which is expressed as 1 – p (e.g. 1- 0.45 = 0.55)

Pros of Kelly Criterion

● Optimised growth: The Kelly Criterion aims to give you long-term growth by adjusting bet sizes based on the perceived edge, potentially leading to higher profits
● Risk management: It reduces the risk of ruin by avoiding overly aggressive betting on low-probability events

Cons of Kelly Criterion

● Complexity: The Kelly Criterion is more complicated to calculate and implement, requiring accurate assessments of probabilities
● Variance: It can lead to high variance in bet sizes, which might be uncomfortable for some bettors