In sports betting, the point spread is the best equalizer. However, are you wondering how sportsbooks come up with the number? Often, bookies use a point spread formula that creates the least risk for their sportsbooks. As a result, they earn more profits.
As a player, you need to know how bookies come up with the number for the point spread. So for this online sports wagering tutorial, we assume that you know the basic information on the point spread.
What is the Point Spread Formula
Bookies create a point spread that would attract equal action on both sides of the line. For example, if you look at any NFL game, you’ll see that the payouts on both teams in any game are around -110. That means players bet $110 to win $100. The same is true with NBA betting. Most point spreads have a -110 payout against the spread.
If you wager $550 on the Indiana Pacers +8 and another person wagers $550 on the New York Knicks, the sportsbook got $1,100 in wagers. According to a sports betting directory, it doesn’t matter who will win the game. Also, the sportsbook will only need to pay out $1,050, which is the bet amount of $550 and $500 in winning. Thus, the sportsbook made $50 from the two wagers.
If both sides take equal bets, there’s no risk for the sports betting platform. Thus, bookies try their best to develop a spread that will attract similar action to both sides.
Also, it would be best if you kept in mind that the betting public is not a rational actor. Players wager on specific teams more heavily than others. It doesn’t matter if the team is playing well or not.
According to sports betting odds experts, public teams attract many bets. You’ll find them in all sports. For instance, the LA Lakers and Golden State Warriors are public teams due to their massive fan bases. If sportsbooks list public teams, they risk a loss once public teams cover the spread.