Can Sports Betting be a Form of Investment?

One of the most frequently asked questions in the sports betting industry is whether or not it can be a long term profitable investment. This question often comes from intermediate players who are getting the hang of the game. After a few wins, a lot of us start to wonder if this could be a good financial path.

Is it possible if using the most common betting strategies, to grow your money by betting on your favourite teams? Would it change the way you watch sports? If it is, indeed, a form of investment, then how does it work? One thing is for sure, and it's that things are seldom what they seem.

Breaking Things Down

How to avoid losing bets

To decide if sports betting is a form of investment, first ask yourself if you think that investing is a form of betting.

There are many ways in which one can invest their money. The most common method is by buying stocks. You're betting your money on a company doing well in the future.

Take option trading, for example. You're "investing" in a currency based on a prediction of whether it would go up or down in value all within minutes. Of course, there's extensive research and studies behind that decision; but, at the end of the day, no one knows for sure what's going to happen.

Another popular type of investment is real estate. It's a bit more passive than stocks but still involves knowledge and management skills. When you buy a property, you're betting that it will sell for a higher price. Some realtors put extra money into renovations, and that also counts towards your bankroll.

Betting represents an understanding of risk, though it can vary with players. You're monetising the belief on a potential outcome. Investing works the same way. Nobody will risk their money if they're not confident they'd earn acceptable returns.

BreaLooking at All Anglesking Things Down

Now, as we can sort of agree on the idea that investing is a form of betting, let's compare individual aspects of both sides.

Risk vs Reward

There's a popular misconception about how much you can earn by betting on sports. A lot of people think trading stocks would make you more money than some lousy football games ever could. Part of the reason is that they believe that there are complex calculations involved in buying stocks. Whereas, in sports betting, you sit on your couch and hope the athletes do it right.

If you're one of those people, you couldn't be more wrong.

While it's true that trading stocks is anything but easy, sports betting involves much more than a spreadsheet and yelling at the TV.

There are various levels of gameplay, from casual to professional. The risks are the same; this much is obvious. The essential thing here is to do your research and find the bookmakers with the highest odds, which will justify the risk.

If you can afford to invest 3,000 pounds into a few Apple stocks, then your friend, who's a sports bettor, can also put down that much on a Raiders game.

Here comes the difference in rewards. The returns of stocks are linear. You profit or lose by how much they change. In sports, you can accumulate, multiply, or hit a streak. Your earnings will depend on the strategy that you employ.

Research and Calculations

Before someone decides to invest in a stock or anything for that matter, they need to first consider all of the factors that influence its returns. These factors include: what the company is doing, how they are treating their customers and public opinions on their products and services.

The same things go into consideration when betting on a sports team. These factors can include their track records, how consistent they are, who their star players are and who they're playing against.

This is where sports betting becomes more difficult. You need to know not only your team's strengths but also the opponent's. Knowing about the opposing teams and their stats can help you in deciding on whether or not you should make a bet.

Who are we kidding? It dictates your decision of making a bet.

How Do We Invest in Betting Sports?

Taking all of the above factors into consideration, you'll see that there's potential in investing in sports betting. As with any other type of investment, knowledge and risk management are essential. You don't need to interview a hundred head coaches or have an Excel full of formulas and scoring stats.

Follow a few simple strategies to get started. Once you've concretised a reliable pattern that has seen some profit, feel free to get creative.

Choose the Right Bookie

Stock traders have brokers. Sports bettors have bookies. The big ones often have their own platforms where you can place bets online.

Some of them come as a part of a larger online casino. You'll often want to avoid these because they are not independent.

Experienced players always go for professional bookies who can make their own decisions and offer good odds. Getting a favourable betting line is also important. You'll want to increase your chances of winning as much as possible.

Long term betting requires high accumulation payouts and streak bonuses. When you're investing in sports, these are the best lines as they make a low-risk, slow but steady, route to good profit possible.

Stick With One Sport and Study It

One thing that separates a novice from a pro is how quickly they get bored. They might lose a football game and move on to soccer or horse racing. These are casual players, not investors. Good investment requires dedication.

If you're a football fan, say, then that's a good start. Before the beginning of a season, research all of the teams, not just your favourite. Check out their win/loss, players trades, injuries, coach changes. All of that can affect a team's performance a lot more than anyone might commonly think.

Manage Your Bankroll

Similar to any other form of investment, you always need to know how much is at stake. One of the biggest mistakes that beginners make is overestimating how much they can afford.

The culprit is often the first few wins. They can give you a lot of confidence, so you go all-in on the next bet, thinking you're on a streak. You might win that as well. Then, your friends cheer you on, and you put everything and more on the next game trying to get that huge accumulation. There goes your mortgage.

Don't do that. It happens to too many people.

Make sure that whatever you're playing with is what you can afford to lose. Think of it as money already lost. While that may seem depressing, it helps to lower your expectations. A pleasant surprise is always better than a well-planned defeat.

Keep a limit, which you will not go over, no matter what. Sometimes you have to accept losses and move on. There's always the next season; besides, you had already lost that money anyway.

Final Thoughts

By now, we can confirm that sports betting is a definite form of investment - a fun one, at that. Like all things in life, there are advantages and downsides on the table. Stock and real estate investing are all about number crunching and financial awareness. Betting on sports requires more attention to detail and tactical understanding.

Regardless of how much knowledge you have or how big your bankroll is, it's a good idea to always consider your approach and have a plan.

DISCLAIMER: The above Risk vs Reward scenario is only an example. Do not put 3,000 dollars on the Raiders because of this review.