How odds are calculated and why you should use a comparison service MyEdge Follow Mar 22, 2018 · 2 min read

Take the red pill. We’re going down the rabbit hole. Have you ever calculated your total earnings on sport events predictions? If you’ve invested in enough of them, you’re likely to notice something disturbing: a net loss. Thought it was just bad luck? Others of you have probably heard that the odds are stacked against you, but how? And what can you do about it?

Manipulating the odds

Any business needs to make a profit and predictions providers are no different. On the surface, their profits seem to be dependent on the odds just like yours but the difficult truth in the industry is that providers wouldn’t exist if they didn’t know they could make consistent profits — profits that come at the disadvantage of their players. They accomplish this by carefully calculating the odds before making offers available and manipulating the numbers ever-so-slightly to guarantee themselves a net profit regardless of outcome.

First, providers set out to find the true probability of any given outcome by evaluating the possible outcomes much like a player would, but with highly-skilled experts leading the effort. And what makes these odds different from what the player is then offered? Well, after establishing true probability, providers consider which offers will be more popular with players. A sports team with a larger fan-base, for example, is likely to have more players investing in its victory, for which providers reduce the odds. Popularity always equals lower odds and lower payouts from the provider.

Providers then include a margin that can vary between providers and is adjusted as the event nears. There is still some small risk to providers after offer is out there since odds are dynamic and may shift due to unpredicted incidents. But by placing themselves in a solid strategic position and manipulating the odds from the very beginning, providers virtually guarantee a profit, disadvantaging players in the long run.

Compare and rebalance

Enter comparison services — a way to level the playing field. Comparison services utilize the fact that providers calculate odds differently and players can therefore find better deals to invest in by looking at the offers offered by multiple providers.

By using comparison services like myEdge, players aren’t locked into buying from one provider and therefore escape a trap that inevitably loses them money over time. myEdge also facilitates mobility between providers with blockchain technology that allows players to swiftly and safely make exchanges between tokens and cryptocurrencies used by different platforms and providers.