In fixed-odds gambling, you know the precise odds when you place a gamble. These are the odds that will reflect the actual amount a punter will win after a bet is made.
Even though these odds could shift over time as the bookmakers dynamically change the values to reflect variations in the race atmosphere, the amount a punter can stand to win or lose remains consistently.
The advent of the internet enables people to see what the latest odds are before making a wager. The rise of smartphones plus online betting websites also makes it faster and more accessible for people to evaluate the best odds and offers.
Pro Tip: Fixed odds could change over time. Look for the greatest price offers to make the most out of a fixed bet.
What are fixed odds?
Fixed gambling odds are the odds presented by a bookie on which a punter stakes a particular amount. In theory, these odds are fixed.
The odds you take when placing your gamble are the odds you would receive winnings for.
However, in truth, with contemporary bookmaking, fixed odds are not as fixed as they used to be.
Fixed costs aren’t that fixed anymore because of augmented competition. This means the bookies are vying to offer you the finest prices they can to entice you to sign up and make a wager on their platform or with them.
Several bookies promote the best price for specific bets wherever the fixed odds for your gamble can change – but continually in your favor.
For example, let’s say you put a gamble at 3/1 (4.00) on Old Nag for the Grand National. Throughout the competition, his odds change to 5/1 (6.00) at the off. The bookmaker would automatically provide you with these improved odds. Now, that is a thing to be on the lookout for!
How does it work?
If a bookmaker wants to set the odds in such a way that any unit stake sold has a similar rate of return (no matter the odds), the single best way to do so is by relational distribution.
However, this isn’t a sustainable way to set odds.
It’s much more efficient to use identical odds-ratios to set the odds. However, what this means for punters is that gambles on shorter odds make a higher return rate than gambles on larger odds.
Moreover, it’s also important to consider that the yield firmly upsurges as the odds shorten. It seems likely that an equivalent odds-ratio would give rise to this phenomenon irrespective of the number of selections in the event.
Punters that gamble on shorter odds make a higher return rate than punters, making wagers on longer odds. Longer odds are occasionally recognized as the favorite–longshot bias.
The primary cause for the favorite–longshot bias occurs in fixed-odds gambling markets is because of how bookmakers set their odds.