The concept of Yield in Sports Betting

The concept of Yield in Sports Betting

What does yield mean in sports betting
Autor betsonly 29 Jan 2018

One of the most widely used terms in sports betting is the yield. However, it is not always understood what the terms means and how it is calculated.

Put simply, the yield is the real profit (or loss) made on sports betting. It is the primary measure of betting efficiency, depending on the bets selected and the odds offered. Calculating the yield, which is always expressed as a percentage, is actually straightforward, and should be arrived at using the following formula:

Yield = (the net gain/total amount wagered) * 100.

This is best illustrated by means of a practical example. For instance, let’s imagine a scenario where a player makes three bets, each of €10, at odds of 2.5, 3 and 1.75 respectively, and that the bets at 2.5 and 1.75 win, whilst the one at 3 fails. How do we calculate the yield?

  • With bet one: 2.5 * €10 wager = €25 won, less the €10 stake money, giving a net profit of €15.
  • With bet two the entire money staked is lost.
  • With bet three: 1.75 * €10 wager = €17.50 won, less the €10 stake money, giving a net profit of €7.50.

If we then combine the 3 bets together, it can be seen that for the €30 staked, the player has gained a net profit of €22.50 (€15 + €7.50). This means that their total yield can be calculated as: €22.50/€30 *100 = 75% This is an impressive return but, unfortunately, it does not represent reality. After all, the player has only made bets and that is far too small a sample size to determine what their overall yield from sports betting is likely to be in the longer-term.

In fact, it can be argued that it is only possible to speak accurately of a player’s yield when they have made bets which run into the thousands. This allows for periods of extreme good and back luck which even the most skilled and knowledgeable player experiences from time to time, and permits for a true reflection of their ability to successfully predict and bet on sporting outcomes, at least, to the extent of winning more than they lose.

Research actually indicates that professional punters have long-term yields from sports betting which range between 5% and 10%. This is an important metric to bear in mind before following advice or tips from an “expert” who promises to deliver yields which are way above the norm.

The reason that the concept of yield is used so frequently when it comes to sports betting is because it is a measure that unifies and standardizes performance, irrespective of the amounts staked or the odds on offer.

For example, somebody who manages to convert a bank balance of €100 to €500 has a better yield and is a better forecaster – or business person – than their colleague who wins €50,000, having started with €100,000. That is because the amount won, in the first instance, is greater compared to the amount staked, than in the second example. The yield equalizes all other factors to give a standard measurement.

The yield then is an important criterion for judging relative success and efficiency in sports betting, and provides a standardized measurement when assessing the performance of different players over the long-term.