What is a sports betting bankroll?
In the simplest terms a sports betting bankroll is an amount of money that we set aside for sports betting. We don’t use it to pay the rent or bills it is a completely separate investment that is solely used for sports betting.
As somebody that has been betting on sports and trading sports for a living the past two years I can say one of the biggest factors in being successful in both is treating them as a business and having proper bankroll management. Lets look at the difference between good and bad bankroll management.
First lets look at bad bankroll management.
This is Bobby the bad sports bettor. Bobby has a spare £100 every week after he has bought food, paid the bills etc. Bobby isn’t bad at finding value bets however he no idea of good bankroll management.
Bobby likes to make two bets a week for £50 each, if they win next week he splits his winnings into two bets again and bets for example £100 on each game. Bobby does this until he either reaches a total of £1000 and withdraws or loses his money and starts again.
He does not think long term or record his bets but for every time Bobby reaches £1000 he loses £3700 trying to get there. Bobby is a losing sports bettor.
Sports Betting Bankroll Management
Lets look at good bankroll management. Bobby learns good bankroll management and decides to put aside some of his wage that he has for recreational use.
Bobby has a bankroll of £1000 and uses bets between 2% to 5% of bankroll depending on the odds. When Bobby bets on odds between 1.5-2.0 he uses 2-3% bets, odds below 1.5 he uses 3-5% of his bankroll and bets above 2.0 he uses 1-2%.
This is very solid bankroll management and allows a very steady progression in his bankroll. Bobby records his bets and sees over a year that for every £1000 he bets he is making a profit of £55. Bobby bets £10,000 that year and makes £550 in profit for a 5.5% return on his investment.
Bobby has become a winning sports bettor as he has learnt proper bankroll management.
I hope this answers the question what is a sports betting bankroll?
Whilst also giving some pointers on good and bad bankroll management.
Useful resources and links
Profitable betting strategy
Using the Kelly criterion for betting