An NFL betting survey from Optimove, an Israel-based software and marketing company, among 287 US sports bettors found that:
- 81% of the sports bettors say that they have a betting budget
- 92% of them are aware of responsible gaming resources
- 40% of the respondents use betting limits and/or are seeking help to manage their betting habits
Why am I sharing this with you? It’s because I want you to understand the power of being intentional about the amount of money you budget to bet on sports.
It can literally prevent sports betting addiction and unhealthy betting behaviors that can create a whole lot of problems in our lives.
What is bankroll management?
Bankroll management in sports betting refers to the practice of effectively managing the amount of money or bankroll that you have set aside to place on bets.
It involves implementing strategies and techniques to ensure that you can sustain your betting activities over the long term and minimize the risk of losing all of your money on one bet.
Bankroll management is one of the most responsible, profitable, and important parts of sports betting that every beginner should understand.
It basically means, setting a budget before you start betting on sports.
Here’s why you need a bankroll management strategy. The average sports bettor betting on a -110 odds bet will win around 48-52% of their bets.
The majority of sports bettors will lose money in the long run, while only a small sample size of sports bettors are profitable long term.
I don’t say these to scare you I’m using them to let you know that without the right sports betting strategies and game plan, most of us will lose our money betting on sports.
But it doesn’t have to be this way. And even if we lose it shouldn’t financially ruin our lives.
A few years ago when I started sports betting I knew nothing about bankroll management and I ended up losing thousands of dollars. Don’t make the mistakes I did.
Why is bankroll management important in sports betting?
Bankroll management is important in sports betting because it helps you maintain control over your finances and minimize the risk of losing all of the money you plan to use for sports betting.
Without proper management, you may be tempted to bet more than you can afford, leading to financial troubles and potential addiction.
Another important aspect of bankroll management is that it allows you to withstand losing streaks. In sports betting you will experience periods of losses, even the most successful bettors do.
No sports bettor wins 100% of their bets and betting variance can happen to all of us.
When you have a plan of how you will manage your money and how much you will put on each bet, it’s easier to weather these losing streaks without depleting your entire bankroll.
This means that you will have enough money to continue betting and take advantage of future winning opportunities.
Bankroll management also helps you make more rational and smarter betting decisions. Bettors who manage their bankroll correctly are less likely to make impulsive and emotionally driven bets.
Instead, they can carefully analyze their betting options, consider the odds, and make calculated decisions based on their betting strategy.
This disciplined approach increases the chances of making profitable bets and reduces the risk of making hasty decisions that can lead to significant losses.
How much should you bet based on your bankroll?
When it comes to determining how much to bet based on your bankroll one commonly recommended strategy is the percentage method.
This method suggests putting a fixed percentage of your bankroll on each of your bets, which is usually between 1% and 5% of the total amount of money you’ve set aside just for sports betting.
For example, if your bankroll is $1,000 and you choose to bet 2% of it, your betting amount would be $20, on a single bet.
This approach helps protect you from significant losses and allows you to gradually grow your bankroll over time.
Bankroll management strategies
There are a lot of bankroll management strategies out there but the safest ones are the ones that are the easiest to follow.
The first 5 of these strategies are the most commonly used, and easiest ones to follow, with the percentage model being the most popular among sports bettors.
Let’s have a look at each of the strategies individually:
1. Percentage betting strategy
Percentage betting (also called proportional betting) is a bankroll management strategy that involves betting a set percentage of your bankroll on each of your bets, but increasing or decreasing your bet proportionally according to your bankroll.
The concept is to reduce the risk of losing large amounts of money on any single bet to ensure that you can continue to bet even after a losing streak.
To implement proportional betting, you must first determine the percentage of your bankroll that you are willing to risk on each of your bets.
This percentage is usually between 1% and 5% of your bankroll.
For example, if you have a $1,000 bankroll and you’re willing to risk 2% of your bankroll on each of your bets, then you would bet $20 on your first bet.
Let’s say that you win the first and your bankroll increases to $1,200, you would then bet $24 on your next bet (2% of $1,200).
Let’s say your bankroll decreased to $800, then you would bet $16 on your next bet (2% of $800).
The key advantage of proportional betting is that it helps you manage your bankroll more effectively and reduces the risk of losing large amounts of money on any single bet.
Percentage betting is a great way to grow your bankroll, slowly over time, and most often, betting responsibly means never betting more than 5% of your bankroll in a day.
2. Unit betting strategy
The unit betting model involves dividing your bankroll into units and putting a consistent percentage or fixed amount of units on each of your bets.
This approach helps you maintain discipline and control over how you bet, to ensure that you don’t risk too much of your bankroll on any single bet.
For example, let’s say you have a bankroll of $1000 and decide to use a unit size of $10. With this unit betting model, you would bet 1 unit (equivalent to $10) on each bet you make.
This allows you to spread your risk across multiple bets and avoid the potential devastation of losing a large portion of your bankroll on a single bet.
Betting units are a fundamental concept in bankroll management for sports betting and can absolutely be the difference between losing $500 on one bet versus just losing $10.
3. Flat betting strategy
The flat betting model is a bankroll management strategy that involves placing the same amount of money on each bet, regardless of the odds or perceived value.
This approach is often recommended for beginners because of its simplicity. It doesn’t require complex calculations or adjustments based on previous wins or losses.
With this strategy, you decide on a fixed betting amount that suits your budget and stick to it throughout your betting journey.
For example, if you have a $1,000 bankroll and bet $10 on each of your bets, you would bet $10 on each of the bets you make.
Your bet size remains the same, even if your bankroll increases or decreases. This discipline can help you avoid chasing losses or getting carried away by short-term successes.
This strategy is considered a conservative approach to betting and can be useful for beginners or anyone who prefers a low-risk betting strategy.
4. Confidence betting strategy
A confidence model betting strategy is a bankroll management strategy that involves assigning a confidence level to each of your bets based on your analysis and research.
The confidence level is a measure of how likely you believe the bet is to win, and it is used to determine the size of your bet.
With a confidence betting strategy, you assign a percentage value to each bet based on your level of confidence.
For example, if you assign a confidence rating of 70% to a bet, you would bet 7 units on a 10-unit scale. If you assign a confidence rating of 50%, you would bet 5 units, and so on.
If you had a $1000 bankroll and determined that $10 equals 1 unit, based on the example above, you would bet $70 out of your $1000 if you were 70% confident that your bet would win.
The confidence model betting strategy is a more advanced approach to bankroll management that requires careful analysis and research.
It’s more useful for experienced bettors who have a good understanding of the sport or event they are betting on and can accurately assess the likelihood of a particular outcome happening.
If you want to try this strategy here’s a more safer way to do it:
Let’s say you have a $1000 bankroll and you decided that you’ll only bet 5% ($50) of it today, but you like only two bets today.
You can bet 70% (or higher/lower) on the bet that you like the most, which would be $35, then put the other $15 on your other bet.
5. The Kelly criterion strategy
The Kelly criterion strategy is a mathematical formula used in sports betting to determine the optimal amount of money to wager on a particular bet.
John L. Kelly Jr. developed it in the 1950s and is widely regarded as one of the most effective bankroll management strategies.
The goal of the Kelly criterion is to maximize the growth of your bankroll over time while minimizing the risk of ruin.
The Kelly criterion takes into account two key factors:
- The probability of winning a bet, based on a positive expected value
- The odds offered by the sportsbook
While considering these factors, the formula calculates the percentage of your bankroll that should be wagered on a particular bet.
The formula looks something like this: (P * (Odds – 1) – (1 – P)) / (Odds – 1), where P represents the probability of winning and Odds represents the odds offered by the sportsbook.
I wouldn’t worry about the formula too much. I would just use OddsJam for this because they’ve built a great tool that does this for you.
One of the advantages of the Kelly criterion strategy is that it allows you to take advantage of positive expected value (EV) bets.
Positive EV bets are those where the potential payout is higher than the implied probability of winning.
By betting a higher percentage of your bankroll on these bets, you can maximize your long-term profits.
However, the Kelly criterion strategy requires an accurate estimation of both the probability of winning and the odds.
If these estimates are incorrect, the strategy can lead to significant losses. OddsJam has a great Kelly criterion calculator that they offer sports bettors, you can check it out if you wish, it’s free.
Other strategies related to bankroll management:
6. Martingale betting model
The Martingale system is a betting and bankroll strategy often used in various forms of gambling, including sports betting.
It is a loss recovery betting system that aims to recoup previous losses by increasing the size of the bets after each loss.
The idea behind the Martingale system is that eventually, a win will occur, and the increased bet size will cover all previous losses and result in a profit.
One of the Martingale system’s key principles is doubling the bet after each loss. For example, if you start with a $10 bet and lose, the next bet would be $20.
If that bet also loses, the subsequent bet would be $40, and so on. The idea is that when a win eventually occurs, it will offset all previous losses and result in a net profit equal to the original bet size.
The Martingale system requires a significant bankroll to sustain the increasing bet sizes, especially in the event of a prolonged losing streak and there is no guarantee that you’ll win eventually.
I think this is a dangerous strategy to use if you’re an inexperienced sports bettor.
While the Martingale system may seem appealing in theory, it is important to consider its limitations and potential drawbacks.
One of the main concerns with the Martingale system is the assumption that a win will eventually occur.
In reality, there is always a possibility of an extended losing streak, which can quickly deplete a bankroll.
Also, many sportsbooks set maximum bet limits, which can prevent the Martingale system from being effectively implemented.
Another drawback of the Martingale system is the potential for exponential bet size growth. As losses accumulate, the bet sizes can quickly escalate to large amounts, which can be financially risky.
Personally, I would steer clear of this strategy due to it being way too risky compared to other strategies on the list.
7. Fixed profits
Fixed profits refers to a specific approach to bankroll management in sports betting where the bettor aims to make a predetermined profit target.
This strategy involves setting a fixed amount of profit that you want to achieve within a given time period or number of bets.
The idea is to have a clear goal in mind and to stop betting once that target is reached. This approach can be appealing to beginners as it provides a sense of control and discipline.
However, it is important to understand that fixed profits may not always be realistic or attainable in the unpredictable world of sports betting due to factors such as odds, and probabilities.
While fixed profits can be an attractive concept, it is essential to recognize the potential pitfalls of this approach.
Sports betting outcomes are inherently uncertain, and it is impossible to accurately predict the exact amount of profit that can be achieved within a specific timeframe.
Setting fixed profit targets may lead to unnecessary pressure and frustration if they are not met.
Instead of focusing solely on fixed profits, a much better approach to bankroll management in sports betting is to prioritize the preservation of your bankroll and the long-term profitability of your betting activities.
This can be achieved through strategies such as setting a maximum bet size based on a percentage of your total bankroll.
8. Fixed losses
Fixed losses refer to a specific approach in bankroll management where you set a predetermined amount of money that you are willing to lose during your sports betting activities.
This predetermined amount is often referred to as the fixed loss limit.
The idea behind fixed losses is to protect you from losing more money than you can afford and to ensure responsible gambling practices.
To implement fixed losses, start by determining the amount of money that you are comfortable losing without affecting your financial stability or causing significant distress.
This amount should be based on your financial situation and risk tolerance.
Once the fixed loss limit is established, you want to stick to it and never exceed it, regardless of winning or losing streaks.
This discipline is important to maintain a sustainable bankroll and prevent impulsive decisions that can lead to substantial losses.
Combining multiple bankroll management strategies
Sometimes sports bettors will combine bankroll management strategies, based on expected value and confidence about a particular bet.
For example, let’s say I have a $1000 bankroll and I only plan to bet 5% of it today. That means I will not be betting more than $50.
But what if I had two bets that I like?
Using the percentage and confidence model, I could bet $30 on one bet and $20 on the other, or $40 on one bet, and then put the additional $10 on the other.
This decision is being made based on which bet I like the most.
Tools for Bankroll Management
There are several tools available to help with bankroll management when you’re betting on sports. The best ones of these popular tools are:
- Pikkit
- Kelly Criterion Calculator
- Bankroll percentage calculator
Pikkit allows you to keep track of your wins, losses, and overall profitability.
This tool is very useful for everyone and every beginner who is just starting out and wants to have a clear understanding of their betting activity should use it.
A Kelly Criterion calculator helps you determine the optimal amount to wager on each of your bets based on your bankroll and the perceived value of the bet and is used to maximize your potential returns while minimizing your risk.
A bankroll percentage calculator helps you determine the ideal percentage of your bankroll to wager on each bet.
When you input your bankroll size, the calculator will provide you with the recommended amount of money that you can safely put on each of your bets.
What is the best bankroll management strategy for sports betting?
One of the best and easiest bankroll management strategies for sports betting is the percentage method (percentage betting strategy).
In this method, you bet a certain percentage of your total bankroll on each of your bets, usually calculated as 1-5% of the amount of money you’ve set aside to bet with.
For example, if you only had $100 to bet on sports and you decide to bet 3%, you’d bet only $3 on each of your bets.
The beauty of this approach is that it automatically adjusts your betting size according to your bankroll. If your bankroll goes down – so does your bet size, and if your bankroll increases – so too does your bet amount.
This can be a great strategy for beginner sports bettors as it ensures responsible money management and limits potential losses.
How to maintain long-term profitability with bankroll management?
To maintain long-term profitability with bankroll management while sports betting you have got to be disciplined to stick with your plans no matter what.
Here are a few key things to consider:
1. Set a budget
Determine the amount of money you are willing to invest in sports betting and consider it as your bankroll.
This budget should be an amount that you can afford to lose without impacting your daily life or financial obligations.
2. Divide your bankroll
Once you have set your budget, divide it into smaller units.
This division helps you manage your bets a lot easier and reduces the risk of losing your entire bankroll on a single bet.
Many experts recommend dividing your bankroll into 1-5% units, depending on your risk tolerance and confidence in your betting strategy.
Let’s say for example that you only had $100 to bet with and you decided to put 2% of that on a single bet.
2% of $100 is $2. This means that at $2 per bet, you would be able to make 50 bets in total.
3. Bet sizing
Once you divide up your bankroll be mindful of how much money you place on each of your bets
Avoid placing large bets that can deplete your bankroll quickly, even if you feel confident about a particular bet you’re about to place.
Instead, consider using a percentage of your bankroll for each bet.
This approach allows you to adjust your bet size based on the size of your bankroll, ensuring consistency and minimizing the impact of losing streaks.
4. Manage your emotions
Emotions can often cloud our judgment and lead to impulsive decisions. Stay disciplined and stick to your bankroll management plan, even during winning or losing streaks.
Avoid chasing losses and don’t start increasing your bet size or making irrational bets trying to win back money you’ve lost.
Similarly, don’t get carried away by a winning streak and start making larger bets without proper analysis.
When in doubt bet only 1-5% of your bankroll.
5. Analyze and learn from your bets
Use bet tracker apps like Pikkit to keep a record of your bets, including the type of bet, odds, stake, and outcome.
Regularly review your betting history to identify patterns, strengths, and weaknesses in your strategy.
This analysis can help you refine your approach, learn from past mistakes, and find out what sports and types of bets you’re making more money with.
Here’s A Bankroll Case Study For You
I want to make another point about bankroll management with you. At the beginning of this guide, I mentioned that if you bet only -110 odds you would win about 48-52% of the time.
Let’s look at a real example of this:
If I was betting on hockey spreads and decided that I would ignore bankroll management and bet $100 each on 10 hockey game spreads and won 5 out of the 10 games, here’s how much money I would make at the end.
| Bet # | Bet Amount | Odds | Win/Lose | Win/Loss Amount |
|---|---|---|---|---|
| 1 | $100 | -110 | Win | $190.90 |
| 2 | $100 | -110 | Win | $190.90 |
| 3 | $100 | -110 | Win | $190.90 |
| 4 | $100 | -110 | Win | $190.90 |
| 5 | $100 | -110 | Win | $190.90 |
| 6 | $100 | -110 | Lose | -$100 |
| 7 | $100 | -110 | Lose | -$100 |
| 8 | $100 | -110 | Lose | -$100 |
| 9 | $100 | -110 | Lose | -$100 |
| 10 | $100 | -110 | Lose | -$100 |
In our case, you achieved a 50% win rate, winning 5 out of the 10 games. However, despite the number of wins, the final profit/loss result indicates a loss due to the negative odds.
Here’s the breakdown:
- For the 5 games you won, you win $954.5 ($190.90 x 5 bets)
- For the 5 games you lost, you lose $500 ($100 x 5 bets)
- Because you started with $1000, at the end of the day you’re still losing $45.50 ($1000 – $954.50)
Sometimes it’s better to make a few smart bets versus making 10s or 100s of bets in one day, and having a bankroll management strategy helps you with this a lot.