Proper Bankroll Management Explained | Managing Your Money When Sports Betting

Article courtesy of BetOpenly

Many sports bettors, whether casual, serious, or even some professionals, have an improper understanding of what a sports betting bankroll is supposed to be. Each bettor is different, and what works for one might not work for you. However, understanding the principles of proper bankroll management is critical for preventing large losses. If done correctly, you should be able to bet with one big "deposit" and not hit $0. In addition, proper bankroll management allows you to grow over time and increase your bet sizes.

Best Bonuses

BetOnline

$250 in Free Bets

$250 Free Bet

Bovada

$750 Bonus - Tons of Betting Options

$750 Bonus

BetAnything

150% Bonus - Reduced Juice

150% Bonus

Bankroll Management: What is a Sports Betting Bankroll?

Simply put, your sports betting bankroll is the money you can afford to lose; your total balance of betting money. Before we begin, let it be clear that you should never gamble more than you can afford to lose. Even though this article and series will help you to be a more efficient and profitable bettor, you are still gambling and are risking money.

For the purposes of this article, we will assume a $1000 bankroll. Some bettors choose to use multiple sportsbooks, others use just one. Whichever you choose, make sure Betopenly is one of your books, as you will save much more in the long term. Your total bankroll is the amount in all of your betting accounts. Each bet you place should be a percentage of your bankroll, and you should keep tabs on what your total bankroll looks like on a regular basis.

Managing your Bankroll: Unit Sizes!

The word "unit" is thrown around in the sports betting industry like crazy, but many individuals do not properly understand what it means. A Unit is 1% of your bankroll. As such, a one-unit bet would be equal to 1% of your bankroll. Betting with unit sizes is crucial to being able to monitor your bankroll and prevent large losses. At its core, there are only three ways of betting with unit sizes; high variance, low variance, and a combination.

High Variance Unit Sizes

A high variance approach is what the majority of casual bettors use. They will bet large amounts of their bankroll on one bet. This can lead to massive profits, but also to equally massive losses. This approach is known as high variance because there is low volume, and each individual bet can drastically change your account balance. These types of bettors tend to bet anywhere from 10-100% of their bankroll on a single bet! Additionally, these bettors tend to bet lower volume due to the high amounts of money placed on each bet. At its core, it is a very aggressive approach. In our example bankroll, a typical slate might look as follows.

$300 on Michigan -20 +100 (30 units)

$200 on a four-leg parlay +1200 (20 units)

$400 on NC State moneyline -120 (40 units)

$100 on multiple longshot parlays (10 units)

This bettor has 100% of his bankroll on just a few games. He could easily double or triple his bankroll, but also easily lose it all in one day.

Low Variance Unit Sizes

A low variance approach is very strict. On the extreme end, low variance bettors will never bet more than 1% of their bankroll on a given bet. In addition, low variance bettors are very conservative with their bet sizes. These types of bettors tend to bet at a higher volume. The advantage these bettors have is in the variance; a higher volume of bets means that a few bad beats wont hemorrhage the account balance. On the flip side, these bankrolls take a long time to grow, and often see profits or losses of a few units or less each week. A typical slate of low variance betting might look like this.

$10 on Michigan -20 +100 (1 unit)

$4 on a four-leg parlay +1200 (.4 units)

$12 on Nc State moneyline -120 (1.2 units)

$2 across multiple longshot parlays (.2 units)

This bettor has just 2.8% of his entire bankroll on the same games. However, even at its best, this bettor will only be up a few units, and would have to be profitable over a large sample size to make significant returns.

Combination of High/Low Variance Bankroll Management

The best way to allocate unit sizing is by creating a "standard" bet, a "small" bet and a "max" bet. The standard bet is your average size and should be between 1 unit. The small bet is used for parlays and bets with larger odds. This type of bet tends to be in the .25-1-unit range. A max bet is the largest amount you are willing to put on a single bet. Most of the time, this should be in the 1.5-2-unit range. This way, you can make a decent return but are not susceptible to a large loss from high variance scenarios. Using the $1000 bankroll example, the bettor's slip might look like this.

In this Strategy, you should use a combination of analysis and finding value in lines. When you find a good value play, this is where the "eye test" or your personal knowledge can be allowed to influence your bet size. If you are extremely confident due to weather, certain player matchups, or an edge you believe you have, then you can increase from 1-unit to 1.5 or 2-units.

$10 on Michigan -20 +100 (1-unit standard bet)

$5 on a tw0-leg parlay +300 (.5 units)

$30 on NC State moneyline -120 (2-unit max bet)

$7.50 across three longshot parlays (.25 units per parlay small bets)

The Combined strategy allows a bettor to choose spots where they are more confident to place more units, while also gaining the advantage of lower variance by not risking the large portions of bankroll.

I (AKA CatBurg) have a lifelong passion for sports, especially football and basketball. I enjoy the thrill and excitement of sports betting and everything in between. My teams are (Packers #GoPackGo) and who I am betting on!