How much money does the average bookie make

Bookies like paddy power probably tailor their odds with the expectation of making a certain gross profit on their bets. For every quid they take in, how much do they pay out, I'm sure the answer to this question would be fairly constant from year to year.

One thing for sure, they don't make a gross loss on their bets. Is there any way we can find out? Look at the Lottery.

On the other hand, look at a casino game like roulette.

There are 37 slots on a wheel inclusive and the payout for winning a single number bet is 35 to 1. So, for single-number betting, the amount given back in prizes is 35 dollars for every 36 taken in by the casino.

The life of a bookie: the glories and pitfalls

The casino's profit matgin is therefore 2. Of course, the odds in roulette or fixed, not fluctuating like in horse racing.

Nevertheless, I'm sure Paddy Power's profit margin isn't 18x greater than the casinos. When they set the odds on a sporting event the probabilities that these odds represent should add up to 1, but the bookies odds sum to about 1. As an example, Paddy Power has the odds on the Leinster SF final between Dublin and Kildare set at: If the bookies get the odds right, they will make a neat 9.

That's a very good answer Pherekydes, simple but logical.

For 3 horse races like the Dublin Kidare match win, lose, draw , I'm sure the bookies often lose on individual events depending on the amounts wagered on each outcome, but over a large number of events, they will win.

It just makes me think that with such relatively small margins on 3 horse races, the bookies could easily assign a wrong probability to one of the outcomes in favour of the punter. Like in the above, Kildare 0. Im not very good at maths. Its a cliche but,believe me the bookies never lose.

They do occassionally lose.

Like when Padraig harrington won the Open, it wasn't a good day for Irish Bookies. Or when Ireland won the Grand Slam in Rugby this year. People often bet on the person or Horse or Team who they want to win, and don't think much about probability.

Error (Forbidden)

They don't lose in the long run. If they did then it wouldn't be worth anyone being a bookie now would it.

If they did then it wouldn't be worth anyone being a bookie now would it I was referring to the fact that they don't always profit in the short run bit in the long run they do.

I wasn't just making a general comment.

Arent you assuming that every number is covered. Considering there are a hell of a lot of roulette wheels spun on a daily basis is it safe to assume that the profit margin will be higher than 2. These also turn a profit.

There is a non-zero probability of them losing in the long run. There is also a non-zero probability that I will be President but I ain't going to bet on it just yet Page 1 of 2. Want to share your thoughts?

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