To be a successful sports bettor one needs good bankroll management. A gamblers bankroll is the amount of money available for wagering. One of the biggest mistakes recreational bettors make is wagering too much on one outcome.
— Floyd Mayweather (@FloydMayweather) May 24, 2015
Floyd Mayweather is no stranger to betting and when the pound-for-pound king places a wagers it is sizable. It is hard to say how profitable the fighter is at betting because strangely he only shows winning tickets. However, despite staggering career earnings, Mayweather is probably not using an optimal betting strategy.
How much should one bet?
The Kelly criterion is a formula used to determine the optimal size of a bet given your bankroll and the expected return on your wager. The formula is straight-forward but the downside is it requires a precise calculation of the probability of an outcome. That can be difficult even with advanced analytics and models.
A good rule of thumb for casual bettors is to risk 1% to 3% of your bankroll on any given bet. This strategy allows a gambler to survive a losing streak while building up a bankroll.
It is important to stay disciplined when betting. We all want to throw down bets like Floyd Mayweather but that is a quick way to go broke. Good bankroll management is key to being a successful sports bettor.
For more tips and strategies on betting, check out our article on Sample Size.