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## What is Overround Betting?

Overround betting is how a sportsbook makes a profit on bets it takes. For each bet, a sportsbook will offer odds with implied odds of over 100%. The percentage points above 100 are the profit level the sportsbook is taking. So, if the implied odds from all betting options total 107%, there’s an overround of 7%.

An example of this could be a soccer game. If it’s a tight game, the odds for a home win, an away win, or a draw will all be similar. So you may see the odds as follows:

Home: 2.50

Away: 3.00

Draw: 3.00

In this situation, the home team has an implied probability of 40% to win, the away team has an implied probability of 33.3% to win, and a draw would have an implied probability of 33.3%. So, it gives an overall implied probability of 106.67%. So, the sportsbook has a profit margin of 6.67%.

It means whatever choices bettors make, the profit margin ensures the sportsbook is likely to make a profit. Of course, if all bettors choose a single choice and it wins, the sportsbook will make a loss. But the concept of overround betting means the sportsbook expects bettors to place an even spread of bets.

Crypto bookmakers will use the probability of events to create the odds for their games. The sportsbook will use these odds to calculate the overround. In some circumstances, the odds and probability won’t match up perfectly. It’s through this method players can find value for bets.

## How to Use the Calculator

• The “Selection” column is optional and does not affect the calculation.
• Choose your preferred odds format; decimal, fractional or American.
• The odds for all possible outcomes must be included.

With the above calculator, you can work out the book % and sportsbook’s overround for any betting market. This means you can check if a sportsbook is giving you good value odds and you can check whether arbitrage opportunities exist across different sportsbooks.

## How Much Overround Should There Be?

The below table is for 2 selection betting markets. It’s normal for the overround to rise as the number of selections rise, because some overround has to be added to the odds of each selection.

## FAQ

Why does a bookie need Overround?

Bookies need the overround to ensure a profit margin on each bet they offer. Without the overround, players could theoretically make a profit on every bet they place. In this situation, it would lead to the bookie going out of business. Of course, this would be a negative for bettors as they no longer have a sportsbook available.

Can I avoid Overround?

It is possible to avoid the overround. However, it’s unlikely this is possible in a single sportsbook. Players must use multiple sportsbooks to avoid the overround. There’s also no guarantee it will be possible at each event.

What is the payout in betting terms?

The payout is how much a bet returns to players. It’s essential to understand this isn’t the same as the profit. The payout will include the initial stake for the bet. So, to calculate their profit, players must subtract their stake from the payout.

A pro gambling writer since 2015, immersed in the world of crypto since 2016. I've built up a wealth of knowledge and experience in both crypto gambling and crypto betting, making me one of the most prominent voices in the industry.

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