This is a very important concept that will move you forward and secure your bets.

What is ROI?

Any self-respecting bettor must periodically assess the profitability of his investments. Profitability is the main indicator of success in sports betting. The increased competition between bookmakers has given rise to a concept: the ROI. This is a tool whose objective is to allow a study of the profitability and a permanent follow-up of the performance of a bettor. Are you beginning to understand this new concept? We will tell you more in the following article.

What is ROI?

The initial role of the ROI

ROI is the acronym used to refer to a Return on Investment (Return On Investment). Originally used by traders, brokers and other investors, it is nothing more than a ratio whose purpose is to gauge the reliability and positive or negative performance of a financial investment.

The ROI is obtained as a percentage and can be annual, monthly or daily. Its well done calculation provides accurate data to a user about his performance or the output of his business. It is therefore important to pay attention to its result, as it can reveal a significant profit or predict a possible loss-making balance.

What is sports betting really about?

Better known in economics, it is used in the field of sports betting to evaluate the ratio between the amount of the bet and the profit made.

In order to run your tipster business effectively, ROI is essential as it allows you to accurately assess the quality of your tips. In other words, after analysing your return, if it is positive, it means that you have made a profit. However, you need a representative sample of 500 bets to be sure that a punter's ROI is effective.

Keep in mind that the reliability of this indicator relies on the intervention of chance. Below the sample size mentioned above, the reliability of the results is biased. Above this, the intervention of chance is compromised because of the size of the sample.

Method of calculating the Return On Investment

The formula used to determine the Return on Investment is as follows:

(COMBINED ODDS/INCOME) x 100 = ROI

Use: if you make a profit of Lilangeni200 with a capital of Lilangeni1500, through 5 different bets whose cumulative stakes correspond to Lilangeni500, the calculation of the Return On Investment gives:

(200/500) x 100 = 0,4 x 100 = 40 % of ROI

The interpretation of the result reflects a profit of 40% on all your bets put together. In simpler terms, you used Lilangeni500 of a capital of Lilangeni1500 and then got a profit of Lilangeni200.

Reliable long-term indicator

You cannot expect a reliable ROI after you have bet 100% of your first capital and either lost it or grown it. What you need to know is that ROI results are not viable if they are based on one or two values. However, at the end of a season or mid-season, the indicators are much better.