What Is ROI in Sports Betting?

One of the most important aspects of any sports bet is your return on investment (ROI). When you make an investment, whether it’s in a restaurant, rental property or even a piece of sports equipment, you want to know how much you’re going to make back plus some. How much is your investment worth? That’s what you need to know.

The concept of ROI is pretty self-explanatory. Say you put $100 on the Chicago Bears to win the Super Bowl and they do. You’re going to be happy with your $100 investment because you made $100 plus you had fun betting on the Super Bowl. However, if they lose you’re going to be pretty upset because the $100 you invested isn’t going to be worth as much as you thought it was. Your loss is going to be Chicago Bears’ gain because they now have $100 plus they earned from your betting interest. The $100 you invested is called the equity (or principal) and the $100 you made is called the earnings or profit (or interest). The interest you earn is what makes the investment profitable and usually comes with good risk and reward which means you either make or lose money based on the outcome of the bet.

How Do I Calculate My ROI?

There are several ways to calculate your ROI. You can use a traditional method of taking your loss (minus) and your profit (plus) and dividing the first by the second. For example, if you lost $100 on a bet regarding the Chicago Bears and they won, their winnings would be your loss ($100), your interest ($0) would be the same as your investment ($100) and their profit would be your initial investment ($100) plus your interest ($0). If you want to determine your ROI using this method, your investment is almost always going to be greater than your loss no matter what.

You can also take the easy way out and use online tools to do the math for you. Many bookmakers, online betting companies and even some casinos offer a tool that will calculate your ROI for you. All you need to do is enter your losses and profits in the fields provided and the tool will do the rest. You’ll see an immediate display of how your ROI compares to a pre-set benchmark.

What If I Don’t Use An Investment Or I Lose Money On My Investment?

If you don’t use an investment to fund your wagers then you’re gambling with money you already have. However, if you do use an investment but you lose money then there’s no guarantee that you’re going to be able to get your money back plus your investment. If you invest $100 in the Chicago Bears and they lose, you’re going to have to find some way to make that $100 back plus you’re going to have to find some way to earn more than $100 in order to make your investment back plus any interest you earned. This could be difficult if you’re betting on a high-risk investment considering the odds are usually against you. Imagine you put $100 on a horse named Bearcat to win the Kentucky Derby. You feel very confident that Bearcat is going to win because he’s been training really hard and has the perfect physique for the Derby. He wins by a nose, but instead of getting $400, you get zeroes because the horse didn’t finish and the wire service fees are more than you earned. Your $100 is now worth $0 plus any interest you earned on your $100 investment.

One way to ensure you get your money back is to use a bit of insurance or stop-loss in conjunction with your wager. A stop-loss is an insurance policy purchased by individuals to protect themselves from large gambling losses. They use stop-losses to lock-in their wagers and in some cases, they use them in conjunction with an investment when they’re feeling especially lucky. The advantage of using a stop-loss is that if the bet doesn’t work out, the insurance company will cover your loss, less any applicable fees. You’ll receive a check in the mail shortly after the end of the month, reflecting the amount you’re due courtesy of the insurance company. If you use a stop-loss to cover a wager and it loses, the insurance company will cover your loss plus any interest you earned, less their fee. Essentially, the more you risk, the more you earn. Take some time to learn how to use leverage to your advantage in sports betting. It could be the key to significantly increasing your profits.

How Do I Calculate My Return On Investment When I Use Margins?

When you use margins to fund your bets you’re essentially placing “slices” of money on a wager. Margins are what allows sportsbooks and online betting companies to function and make money. When you first make a deposit at a sportsbook or online betting company you’re usually given a certain number of margins to use. Margins allow you to bet larger amounts of money, offering greater payouts and better odds. One slice of money you place on a wager is called a “contribution” and the additional money is called “maintenance”. Typically, the minimum contribution is $10 and the maximum is $100. The size of your maintenance depend on how much money you’ve got in your account and whether you’re using deposit money or your own margins. If you’ve got money in your account and you’re using margins, your contribution is going to be larger than your maintenance because you’re essentially “fronting” the money to place bets. If you decide to discontinue your gambling activities or the betting line movements don’t justify the financial risk then you can ask the bookmaker or online betting company to return the money you’ve deposited plus any interest you’ve earned.

Are There Certain Types Of Sports That Are More Suitable For Investment?

There are several types of sports that are more suitable for investment than others. It depends on your experience, financial situation and how much risk you’re willing to take. Below we’ve listed some of the most popular and lucrative sports with a brief description of how you can profit from each one. Keep in mind, each one pays better than average which makes them more suitable for investment.

American Football

If you’re looking for a low-risk, high-reward sport then American football is the sport for you. It’s one of the most popular sports in the United States and it’s also one of the most profitable. A knowledgeable sports investor can make a small fortune from wagers on the NFL. There are several different types of wagers you can make including parlays where you predict the outcome of multiple games simultaneously or you can bet on the score of a single game. In order to place and make wagers on American football, you’ll need a US football license and a sportsbook or online betting company that deals with US players or markets. You can apply for a US football license at the Professional Football Association (PFA) – a nonprofit organization that regulates and governs the sport. The PFA controls the number of teams in the NFL, the size of football fields and sets rules regarding player safety. In 2020, the PFA charged $10 for a membership and $4 for an individual game. If you want to make the most of your investment in American football then place your wagers early and often.


Like American football, basketball is another popular sport with a lot of financial opportunities. It’s also one of the more difficult sports to make money off of. There are several forms of basketball wagering including simply picking winners or making bets on the outcome of a single game. It’s also possible to make parlay bets where you predict the outcome of multiple games simultaneously or wager on which team will win a designated number of games. Like American football, basketball also has an amateur and a professional league. The professional league, which is mainly comprised of teams in the United States, is called the NBA. Make sure to learn about the different types of basketball betting before you get started. You’ll need a license to place bets in the state of New York, where the NBA is based, but it’s easy enough to get one in other states as well. Like American football, basketball is one of the more popular sports with a lot of financial opportunities. It’s also one of the more difficult sports to make money off of. There are several different types of bets you can make including parlays where you predict the outcome of multiple games simultaneously or wager on which team will win a designated number of games.