Gambling to Win Money? Think again:
Everybody loves the occasional win on the punt – it's exciting and fun. But if you think you can make money from gambling in the long term you are in for a rude shock.
On average gambling agencies will take around 15% invested in the pool of each bet
-- Winning punters get to split the remaining 85%
-- Winners will get back more than they place on a bet but the dividend is split only after the agent takes its 15%
What this means is:
-- You're not betting against the agent – you're betting against other punters.
-- The agent provides you a service and charges 15% for that service.
-- All punters put in 100% of the pool but winners only share in 85%.
-- You're investing in a system that is a long term guaranteed loss.
-- Yes, you'll get your share of wins but you are losing overall at a rate of negative 15%
Most shrewd investors would jump at the chance of a guaranteed 15% profit rate.
On the other hand it would seem madness to invest, and reinvest, in something that is designed to randomly take your money at an overall rate of 15%. Common sense tells you the longer you invest the greater you'll lose. Trying to win your way out of a gambling debt is like digging a hole deeper to find a way out of it.
The thick dotted line represents your average losses of 15% over time – this is the agents cut.
The agent always gets their cut – having a bet is buying a chance to share the split of what is left.
The thin line is your experience per gambling session - sometimes you win, sometimes you lose.
Although the thin line goes up and down it must follow the dotted line because of the agents cut.
You will definitely get your wins but overall you have to lose – it's just plan maths!