Bookmaker Overround

ALTESSE12

Can someone explain why the bookmakers are taking a much bigger slice from local sports in terms of overround compared to their cut for US Sports.

Example. Typical rugby game would have handicap prices of Team A 10/11 Team B 10/11 and draw 20/1
Yielding an overround of 109.5%
American Football ( always no draw)
Team A 10/11 Team B 1/1
Yielding an overround of 102.4%


This is a huge difference which I just cannot understand.

DB74

They are competing with Vegas in the US sports

In the Rugby etc they are effectively operating a cartel and can charge what they like because there is very little foreign competition

DB74

ALTESSE12 wrote: »

Can someone explain why the bookmakers are taking a much bigger slice from local sports in terms of overround compared to their cut for US Sports.

Example. Typical rugby game would have handicap prices of Team A 10/11 Team B 10/11 and draw 20/1
Yielding an overround of 109.5%
American Football ( always no draw)
Team A 10/11 Team B 1/1
Yielding an overround of 102.4%


This is a huge difference which I just cannot understand.

I have rarely seen 1/1 & 10/11 in the NFL. Usually it's 10/11 the pair (giving a book of 104.76%) or it's 1/1 and 5/6 (giving an book of 104.55%)

The Irish Riddler

The more money wagered the lower the overround will be.

The more bookies that offer a market the lower the overround will be.

Competition / Basic supply and demand.

Bluetonic

The Irish Riddler wrote: »

The more money wagered the lower the overround will be.

The overround in the UK Grand National was 155% so I doubt that's a given rule.

http://www.guardian.co.uk/sport/blog/2010/apr/15/grand-national-starting-prices

The Irish Riddler

The bookies not lengthening the odds in the few minutes up to the off for one grand national hardly disprove what I said.

Bluetonic

The Irish Riddler wrote: »

The bookies not lengthening the odds in the few minutes up to the off for one grand national hardly disprove what I said.

It only takes one case to disprove what you said.

Clearly what you said was your opinion and not true.

I have presented the facts, don't take it personally.

Jack46

Horse racing is a poor example as show prices are taken only from on-course bookmakers. Demand is fairly inelastic as most punters at the racecourse will have a bet whether it's a 110% or 155% book (especially in the GN), so bookmakers can act as a cartel and charge what they like.

Healio

In fairness; if Wayne Rooney breaks his leg, you'll more than likely see the actual X-ray on Sky Sports News, but if John O'flaherty your star corner forward tears his achilles; or the local club have their Christmas party the night before a match, the bookie is not going to hear about it.

Hence they take the margain they do. They could just offer nothing at all, and let everyone from the area call them strokers/*****/**** etc.

ArmaniJeanss

Comparing the overround in a 40 runner event like the Grand National to the overround in a 2 or 3 runner event like an NFL or rugby match is farcical.

Other factors like 'margin per runner', generally around 1.5%, come into play so even the most obscure 2-runner event is going to have a lower over-round than a 25/30/40 highprofile horse handicap.

But in general what the Irish Riddler said is true - the more high profile an event then the bigger the volume wagered is, which leads to more bookies pricing it up which leads to a better overround for the customer.

(Though counter intuitively the worse the overround is for the punter often leads to a superior betting opportunity. Probably better to back on obscure events where one bookmaker alone is doing the odds and is doing them to 115%, rather than an event where the wisdom of the Betfair masses is coming up with a mathematically perfect 101% book)