The Ultimate Guide to Bankroll Management in Sports Betting
Ask any professional bettor for their number one rule, and most will say the same thing: bankroll management. Even the best handicappers in the world hit losing streaks, but those who manage their money correctly survive the downswings and capitalize on the upswings. If you want to bet long-term and not go bust, you need a solid bankroll strategy.
What is Bankroll Management?
Bankroll management is the process of allocating, preserving, and growing your betting funds while minimizing risk. It ensures you don’t bet beyond your means and allows you to weather the natural swings of sports betting.
As veteran handicapper Jerald from Predictem.com puts it: “I feel that it is almost as important to implement good money management tactics as it is to pick winners.”
Why Bankroll Management Matters
- Prevents Going Broke: No matter how skilled you are, bad streaks happen.
- Removes Emotion from Betting: Structured bet sizes keep you disciplined.
- Allows for Long-Term Growth: A managed bankroll ensures sustained betting success.
- Maintains Perspective: It’s a marathon, not a sprint—bankroll management helps you think long-term.
How to Set Up Your Bankroll: A Step-by-Step Guide
Before placing a single bet, you need a clear plan:
- Define Your Starting Bankroll: Only bet with discretionary money you can afford to lose. As Jerald emphasizes, “Remember, do not bet with money you can’t afford to lose! It is not worth the stress or problems that will arise if you lose the rent money.”
- Determine Your Unit Size: A unit is the base amount you wager per bet, typically 1-2% of your total bankroll. This conservative approach may not seem exciting, but it’s the only way to sustain losing streaks and give yourself a shot at winning long term.
- Choose a Betting System: Select a method like flat betting or unit sizing to maintain control and consistency.
- Track Every Bet: Record all wagers, outcomes, and bankroll changes to evaluate performance.
Comparing Popular Bankroll Strategies
| Strategy | Pros | Cons | Best For |
|---|---|---|---|
| Flat Betting | Minimizes risk, smooths variance, easy to follow | Limits potential upside on high-confidence plays | Beginners and risk-averse bettors |
| Unit Sizing | Allows bigger bets on high-confidence plays | Requires strong discipline and accurate confidence ratings | Intermediate bettors with proven edge |
| Kelly Criterion | Mathematically optimized for long-term growth | Complex and extremely risky if misapplied | Advanced bettors with accurate probability estimates |
The Flat Betting Method: A Practical Example
Let’s look at a real-world example from Jerald:
- Starting bankroll: $2,750
- Betting unit (2%): $55 per game
- After one month: 72 wins, 48 losses (60% win rate)
- Profit calculation:
- Wins: 72 × $50 = $3,600
- Losses: 48 × $55 = $2,640
- Net profit: $960
- New bankroll: $3,710
With this disciplined approach, a bettor increased their bankroll by nearly $1,000 in one month without taking excessive risks.
When to Adjust Your Bet Size
Bankrolls are not static. Smart bettors adjust their approach based on performance:
- Increase Unit Size After Substantial Growth: Jerald suggests waiting until your bankroll has increased by 50% before increasing your base bet size.
- Reduce Unit Size During Downswings: Consider reducing your base wager by 25% when your bankroll decreases significantly to preserve capital.
- Regular Reassessment: Evaluate your betting performance and bankroll monthly.
Common Bankroll Killers to Avoid
Even the best betting strategy fails if you mismanage your money. Avoid these costly mistakes:
- Oversized Wagers: Risking more than 5% per bet depletes bankrolls quickly.
- Chasing Losses: Increasing bet sizes after losses to “get even” is the fastest way to go broke.
- “Sure Thing” Syndrome: No bet is a guaranteed win—maintain consistent unit sizing.
- Ignoring Record-Keeping: Without tracking results, you can’t identify strengths and weaknesses in your approach.
- The Monday Night Special: As Jerald notes, some bettors make the mistake of dramatically increasing their unit size “on the Monday Night Football game just because it’s the only game on.”
Advanced Bankroll Management Tips
For experienced bettors looking to optimize their approach:
- Separate Bankrolls for Different Sports: Consider allocating specific amounts to sports where you have a proven edge.
- Bankroll Allocation by Bet Type: Some bettors use different unit sizes for straight bets versus parlays.
- Taking Profits: Periodically withdraw a portion of winnings to ensure you’re actually benefiting from your successes.
Final Thoughts
Smart bankroll management separates long-term winners from bust-out bettors. No matter how good your picks are, poor money management will ruin you.
As Jerald wisely states: “Always remember that it is a marathon, not a sprint, and the best way to grow our bankroll is to grind out profits over a period of time.”
Follow a disciplined approach, bet within your means, and stay the course—your bankroll will thank you.