Bookmakers have to make a profit in order to survive. How do they do this, punters lose.
In a race with 10 runners, punters will place the greatest number of bets and quite possibly therefore, the largest amount of money on the favourite, but it would not be unreasonable to presume that there are at least three other horses in a 10 horse field that have a reasonable chance of winning for some reason or the other.
Of the remaining six runners, there is always a chance that one will pull of an upset and return a longshot at high odds.
Of course, if there was not an element of uncertainty in horse racing, there would be no punting markets on it.
The point, however, is that the bookmaker will be accepting wagers from more than one punter and it is always quite possible that some of them will pick the right horse and be owed a dividend.
Because of this, the bookmaker must ensure that the profit he takes in from losing wagers exceeds the winners he must pay.
This fact is often lost amongst the marketing hype upon which bookmakers rely to convince punters to place their wagers with them, as opposed to some other bookmaker.
Astute punters will never let this reality cloud their judgment. They must spend considerable effort, or arrange for someone to do it, trying to determine what odds represent a good value, hoping to discover a race where a favourite is considered a sure thing to such an extent that its odds are shortened, meaning that another runner’s odds may have been lengthened to balance the bookmaker’s offerings, allowing the bookmaker to build in a profit margin sufficient for his assets to exceed his liabilities.
The outcome is that some markets will be framed by the bookmaker so that some horses will be under their true price and some will be over in order to tilt the percentages in the bookmaker’s direction.
This is simply business. If bookmakers did not make a profit, they would eventually be compelled to cease operating. Punters would have no outlet for their recreational energies.
It is similar to how a casino functions. They know that with the edge they have built into their games, along with the fact that they participate in every event, that the house odds will, over the course of enough events, work in their favour.
We want to be clear that we are not in any way opposed to bookmakers earning a profit. We’ve certainly made more than our fair share of contributions to that cause!
What we want to impart is the knowledge that makes it possible for a punter to at least slightly level the playing field. We say slightly because if we could level the playing field entirely, we would be geniuses, rich geniuses, and it would probably not be in our best interests to be charitable geniuses and give the secret of our genius away, or sell it for any price, for that matter.
Obviously, unless someone has unlimited monetary resources, it is not financially possible for a punter to participate in every opportunity.
Certainly there are punters who approach punting as just an occasional venture. Those are not our intended audience. We are more focused on educating the punter who is inclined to participate on a regular basis, at least weekly and possibly daily.
This would be any punter who wants to gain the ability to uncover horses that are showing above their true odds.
Wagering on these runners consistently will lead to profits that if properly managed, along with the entire punting account, that will exceed the liabilities and prove profitable over extended time periods. This is essentially how the successful bookmakers operate and it is the essential key for any punter who wants to pursue race punting as either a substantial supplemental source of income or rely entirely on punting for a living.