Dynamic Odds

It will not be an exaggeration to say that the vast majority, in fact almost all bookmakers that operate on the market, are aimed at recreational players. This means that for such a bookmaker everything is fine until you lose. If you start winning, it starts to become a problem. The limit of tolerance of winning varies significantly, depending on different bookmakers. However, for 99% of bookmakers this limit is there. Usually, unfortunately, it is hung low. Yes, 99% is an extremely high number, however, it is not unrealistic. It is hard to estimate the exact number of online bookmakers in the world, in all markets. However, it can be assumed that there are about 2,000 of them. Adding the number of the elite in the industry, i.e. Asian bookmakers, who issue the odds first, which the rest copy, the number of about a dozen operators who accept winners and never limit players. But actually, why do so few bookmaking sites accept consistent winning players or arbitrage players, which recreational bookmakers do not accept. The answer is dynamic odds.

Dynamic odds definition

Watching the odds comparison sites seeing the fluctuation of odds, you might think that every bookmaker has dynamic odds, after all, you can see the fluctuation of odds at every bookmaker, depending on the trend. Before we get to the actual definition of dynamic odds, which we are interested in, we need to clarify other points.

Bookmakers issuing odds and those copying them.

A few bookmakers around the world issue odds first setting the trend for hundreds/thousands of other online bookmakers who follow these odds and lines. The odds are issued by bookmakers who accept winning players, which is related to their dynamic odds business model. An example is Pinnacle. Sports betting brokers work only with premium bookmakers, i.e. those accepting players of any type, and they are never restricted. Every broker operates in just this way. Whether it is Asianconnect or BetInAsia, you will never get limits on winnings.

So, what are dynamic odds and why mainly thanks to them winning players are welcomed.

Suppose a bookmaker issues odds a week before the start of any match. Let’s assume that it is an over/under bet. The opening odds for an over of 2.5 are 1.96, while for an under of 2.5 they are 1.96. Player X, seeing such odds, recognizes that the over is Value and bets €1,000 on the over. The bookmaker’s system works automatically, reducing the odds for an over on which there is already a bet of €1,000. This reduces the odds to 1.92, while the odds on the under rise to 2.0 making it more attractive than during the opening and attracting other players. Player Y bets €2,000 on the under, and at this point the odds change inversely in direct proportion. The bookmaker ends up earning mostly on the margin and not on the losers, as the stakes on the different markets balance each other out. The business model of such bookmakers is based on very high turnover and low margins. Low margins, i.e. high odds attract big players, winning, arbitrage, etc., who make a large turnover. The market balances out. Recreational bookmakers, on the other hand, make their money mainly from losers and secondarily from margins, which they have much higher than professional bookmakers because they don’t care about professional players.

Why so few bookmakers accept winners

The answer is simple. It is much easier to be a recreational bookmaker that limits winning players. This business model actually carries little risk for the bookmaker. Professional bookmakers, on the contrary, have been on the market for decades and know what they are doing, issuing odds first. They have excellent lines. Turnover at such bookmakers is much higher than at companies for recreational players. As we said, recreational bookmakers limit winning players. Professional ones, on the other hand, also profile them, but not for the purpose of a limit but for better line and odds pricing. To put it simply, the bookmaker takes the opinion of professional players into account in its estimates when setting or fluctuating the odds, of course, this opinion means placing a bet on the event. In summary, at an ordinary bookmaker, winning equals a penalty, while a pro bookmaker “learns” from professional players.

Betting exchanges approach to winning players

Sports betting exchanges operate in a completely different way, and exchanges as a rule do not limit players, since they are not a party to the bet. The limit is only the amount of funds in a given market. On exchanges, players bet among themselves. The bookmaker does not impose a margin on the odds, as it is the players who offer them. The profit of the exchange and the equivalent of the bookmaker’s margin is the commission, which varies from exchange to exchange. Exchanges are not as numerous as bookmakers, there are only a few with Betfair at the top. So the exchanges, along with Asian bookmakers, are what a winning player needs for stress-free betting. What is obvious is that exchanges can be used for arbitrage betting. You can access exchanges through brokers, which you can read more about on our site. If you are interested in the topic of betting exchanges, you can read more here.

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