How Bookmakers Work – Odds and Margins Explained Updated for May 2025

Updated: 20th May 2025

How Bookmakers work and the two types of punters.

The Profitable and casual bettors.

There are two groups of wagerers, those who plan to win and those who prepare to win.

By understanding how bookmakers work, you can calculate methods to wind up being more effective with your betting and alter your losses into wins.

This brief post goes over how bookmakers handle a coin.

The essence of understanding how bookmakers work is understanding where to place a bet.

Numerous amateur bettors make this mistake due to that they do not understand how bookmakers work.

Bookies make an earnings by pricing their betting markets so that the opportunities offered do not represent the analytical possibility of the event.

For example, banking on a coin toss statistically represents a 50/50 possibility (2.0 in decimal opportunities) on either outcome– heads or tails. You bet ₤ 10 to win ₤ 10, making this a 100% market.

Bookmakers produce markets that surpass 100% to produce an edge, which is where the bookmaker makes its profit margin.

For the coin toss, bookmakers would offer heads or tails at odds below of 2.0.

This means you would have would have to bet more to win ₤ 10. If the possibilities were presented at 1.91, you would have to bet ₤ 11 to make ₤ 10, and the market percent is 104.7%.

Because of that the bookmaker's margin is 4.7%.

 How Do Bookmakers Odds Work?

We will take the Pinnacle bookmaker as a way of demonstrating how the odds work and how the bookmakers prices up their markets.

Pinnacle bookmaker prices up two-way markets.

An example of this is the 5 main European soccer leagues priced up to just 102%, which shows it supplies much better soccer odds than basic bookmakers, where margins are as high as 110%.

Making use of the coin toss as an example, you would need to win close to 53% of bets to recuperate expenses with basic bookmakers, nevertheless by betting with Pinnacle and its 102% market, you would need to win merely 51% to recuperate your outlay expense.

The figure of 2% may not appear much at first, yet over the medium to long term, that difference is considerable, and ultimately gives you the best chance to win more.

Take a look at how the variations in bookmaker margins impact their payments over a season, and you'll see why understanding about margins is so important, as it makes a considerable difference to your potential payments, and every wagerer wants to increase their winnings.

To conclude if you are a serious bettor and aim to make money from the bookies in the long term you should be aware of which bookmaker sites offer reduced margins when pricing up matches.

Pinnacle is one such bookmaker that you should certainly examine in more detail as they surpass the normal bonus offerings populated by most of the online bookmakers with reduced margins on games.

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