Betting Glossary

Achieving Parity: Generally accepted concept that bookmakers attempt to generate balanced action on both/all sides of a betting proposition as a result of offering efficiently priced odds; this is done in hopes of minimizing their risk exposure to a single outcome.

Action: A bet or wager of any kind.

Arbitrage: A combination of bets that is expected to yield a positive profit, regardless of which outcome occurs. These opportunities are most often found through mispriced odds or value bets. It is important to bet swiftly when these inefficiencies are found because the bookmakers will eventually notice and quickly correct (see Efficient Market Theory).

Assessing Form: Thorough, in-depth research and analysis in which bettors consider several underlying factors that can ultimately affect a team’s chance for success; research done prior to estimating probabilities for a given proposition or bet.

Betting Market: An individual betting opportunity or proposition on a match or event; i.e. Asian Handicap, First Time Goalscorer, Over/Under, etc.

Bookmaker: (or Bookie) an organization or person who accepts bets on sporting events or other events at agreed upon odds.

Efficient Market Theory: Asserts that markets are “informationally efficient”, or that prices (odds) already reflect all known, public knowledge, and rapidly change to reflect new information.

Favorite: Team or person that is considered the most likely to win a match or event; in terms of handicaps, the team that begins the match with a numeric goal disadvantage; typically the odds payouts on the favorite are lower than the other options available for a given proposition.

Fixture: Term used to describe a match between two teams (also referred to as a matchup).

Form: Evaluation of a team/player’s historical performance, used to predict their chance for success in a future match or event.

“Green” Book: Ideal situation in which a bookmaker’s risk exposure is evenly distributed among the potential outcomes for a particular betting market (opportunity) and a profit will be made regardless of which outcome occurs; the risk is balanced when considering the payout rates (odds), although the amount of betting on each outcome may not be the same.

Handicap: A method in which, prior to a match, bookmakers award one team (the underdog) a numerical goal advantage in hopes of making a lopsided match seem appealing to bettors. Theoretically, bookmakers attempt to set the handicaps at levels in which a bet on either team has a 50-50 chance for success, which will in turn generate balanced action (or achieve parity); also commonly referred to as a ‘line’, ‘pointspread’, or ‘spread’.

Hedging: A bet made by a bookie or bettor on an opposite outcome for which they have already taken a large position, in hopes of minimizing their losses in case their large position bet loses; an attempt to offset risk exposure to a specific outcome.

Line: See Handicap.

Odds: A ratio that signifies the payout rate (how much is received) for a winning bet on a specific outcome, which is set at a level in accordance with what is perceived by the bookmaker to be the likelihood of an event occurring; also called prices.

Overround: The total profit margin the bookmaker collects on a certain match or wager.

Pointspread: See Handicap.

Punter: British term for someone who has placed a bet; commonly associated with football or horseracing (called “bettor” in the US).

“Red” Book: Situation in which a bookmaker’s risk exposure is not properly balanced among potential outcomes for a specific betting market; if a “red” outcome occurs, the bookmaker will not make a profit for that particular betting market (pay out more than they collect).

Spread: See Handicap.

Underdog: Team or person that is considered to be the least likely to win a match or event; in terms of handicaps, the team that begins the match with a numeric goal advantage; typically the odds payouts on the underdog are higher than the other options available for a given proposition.

Value Bet: A proposition, or bet, in which the bettor believes the probability of an event occurring is higher than that perceived by the bookmaker; in terms of odds, the bettor believes the odds were set at level where the reward outweighs the risk.

Vigorish: Bookmaker’s commission or percentage profit on the total stakes collected on a match. (See Vigorish)