Sports betting is a unique investment opportunity because of something called compounding returns. As opposed to bank accounts, where interest will compound either monthly or quarterly, sports betting offers you a chance to get daily returns — the key just getting enough action down. If you can find a reliable way to find even, say, a 2% daily return, that can become a windfall quickly. So, what are compounding returns, and how are they the secret to profitable sports betting? Let’s dive into the answers as I dish out my tips for a profitable sports betting strategy.
What are Compounding Returns? Tips for Profitable Sports Betting
What are Compounding Returns? Tips for Profitable Sports Betting
Compounding Returns Demonstration
The chance to secure returns that compound daily can render sports betting a profitable enterprise — until you get limited, at least. Take a look at the graphic below to see the long-term upshot of those daily returns versus high-yield savings accounts that compound monthly or traditional savings accounts that compound quarterly:
| Time | Sports Betting (2%) | HYSA (5%) | Savings (1%) |
|---|---|---|---|
| First Deposit | $1,000 | $1,000 | $1,000 |
| 1 Day | $1,020 | $1,000 | $1,000 |
| 1 Week | $1,126 | $1,000 | $1,000 |
| 1 Month | $1,776 | $1,005 | $1,000 |
| 1 Quarter | $6,062 | $1,016 | $1.002 |
To calculate daily compounding returns on your own, simply open up an Excel workbook, type your starting bankroll in A1, insert “=A1*1.02” into A2 and copy the formula down. Things can get crazy, quick. Over a full-year sample of daily bets that all gave you a 2% return, you would be up… $1,350,400.
Of course, you’d be limited far before that point, but similar profits are well within your range of outcomes.
Check Out Portfolio EV’s Average Returns
Now that you know how profitable even an average 2% daily return can be, the question is simple — how can you attain those 2% daily returns? It can be difficult to do so, especially with sportsbooks pushing same-game parlays and charging 5.5% juice (or vig).
Fortunately, Portfolio EV tools can help you secure that 2% — or greater — each day. Take a look at our results page:
If, during the 174 days of the NBA season (October 24 to April 14) you secured that 7.6% average ROI on all of your bets placed, you certainly would’ve benefited from compounding returns.
Let’s say you started with a bankroll of $100. If you had gotten the average return of 7.6% every day and kept your returns in the books (and, you know, weren’t limited), you would have had $31,880,340 by season’s end.
Of course, getting exactly that 7.6% return every day is nearly impossible, but by placing a large number of +EV bets, you can insulate yourself from variance to make the most favorable outcomes more likely.
Even a small bankroll can blossom into a large one with our tools. I recommend that you sign up today with code “COMPOUND” — you can take 15% off both our weekly and monthly packages.
Portfolio EV Sports Betting Tools & Tips
New to sports betting? OddsShopper’s selection of Betting 101 articles is here to help. We even have a parlay builder and our guide to parlay betting. Check out our guide to finding positive expected value (+EV), and you can unlock more +EV plays by signing up for Portfolio EV!
