Many punters lose and many don’t want to admit they lose. Many know nothing about the cogs of the betting market. This is understandable. Those in search of the pot of gold at the end of the rainbow will have a long search. Out of the thousands of get rich quick enthusiasts very few do, and no doubt those who do have to sell their souls to the devil to do so.
So what tips the odds in the sports fixed odds betting industry?
The Betting Market Blog has described a typical example of how ‘efficiency of information’ plays a large role in sports fixed odds betting. This is a theory hypothesised by many observers and researches of markets, in particular financial markets including the betting market. In this case it was apparent that information was hitting the betting market in advance of The Racing Post going to press.
Pundits for resources like the Racing Post have a big impact on the betting market. An endorsement of a particular horse in a specific race would have a significant effect on the odds. As such, it is easy to spot when such information comes into the market in advance of the official source. A tell tail sign is the odds shortening in advance of information endorsing a particular selection. A shortening of odds at the betting bookmakers would result from an increase of money being placed on a particular selection. The bookmakers shorten the odds because the exposure to that selection and as a result their potential loses increase.
From the bookmakers odds it is relatively simple to spot repeating patterns of where the odds shorten after insiders backing selection before the market as a whole gets an opportunity. This allows the perpartrators to hedge the selection for a risk free profit.
The Betting Blog provides an example of this activity happening in advance of The Racing Post’s Pricewise hitting the news stands.