A good read for new or casual bettors
Posted: 5/3/2013 6:08:45 PM
How the Point Spread is Made
A number of sports gamblers, both beginners and veterans, fail to
understand the true meaning of the point spread and the thought process
that goes behind the making of the spread for each game. The point
spread isn't designed to be a true representation of how much better one
team is than another, but is designed to attract an equal amount of
money on both teams, so that the sportsbooks are guaranteed a profit.
Many times you may hear that the point spread is designed to create a
case where half of the bettors choose one team and the other half of the
bettors make wagers on the other. That's close, but it's not entirely
correct, as not all sports bettors wager the same amount. If a
sportsbook receives 50 bets on the Lakers for $110 each, but receives 50
bets on the Spurs for $330 each, the person creating the point spread
(the oddsmaker) hasn't done a very good setting the point spread, even
though the same number of bettors are betting on each team.
The sportsbooks are aware that the so-called wise guys (smart bettors)
are going to wager more money on the average than a typical bettor, so
the point spread is created with trying to beat the wise guys. If a
sportsbook has the wise guys on one team and the general public betting
on the other side, they typically will be rooting for the public, with
the knowledge that the public bettors are more likely to give back their
winnings on another game.
One of the most famous stories involving the point spread occurred after
Super Bowl III when the New York Jets, who were 18-point underdogs,
upset the Baltimore Colts. A reporter asked oddsmaker Bob Martin if he
was embarrassed about making that point spread, and Martin replied that
was one of the best numbers he ever made because it split the betting
money down the middle.
Because bettors risk $11 to win $10, any time the money is close to
even on a particular game, the sportsbooks are happy because they
guarantee a profit without any risk. If a sportsbook receives $33,000 in
bets on Team A and $33,000 on Team B, they stand to make $3,000
regardless of who wins the game. Such a scenario doesn't happen nearly
as often as the sportsbooks would like, but it will happen on occasion.
For a number of years, the point spread for the upcoming football games
was released every Sunday night by the Stardust Race and Sportsbook and
it was almost a circus-like atmosphere, as lottery numbers were drawn to
get to see which bettors would have the first chance to bet into the
unveiled point spread. The popularity of Internet sports gambling has
taken away a lot of the thunder from the Las Vegas sportsbooks, and most
sportsbooks now are content to follow the general point spreads of the
A sportsbook who varies its line too much from the consensus line of the
other sportsbooks is likely to receive many wagers on the team offering
the best odds, and puts itself in financial risk should that team
happen to cover the point spread. If all of the sportsbooks had the
Steelers as 7-point favorites over the Jets, but one sportsbook released
a point spread of Pittsburgh -5, they would get a great amount of money
wagered on the Steelers, and very little at all on the Jets, and
sportsbooks do not like to be exposed to those type of situations where
they can stand to lose a great deal of money.
The next time you see a point spread, remember the person taking the bet
doesn't necessarily believe the favored team is that many points better
than the underdog, but they do think the point spread will generate an
equal amount of money wagered on both teams.