In the previous post we explained how to calculate the Bookmaker’s Margin for a single bet. Now, we are going to explain how we can calculate the margin when we are dealing with multiple bets at the same time (paroli).
Let’s consider the following 3 Champions League games with their corresponding odds and margins.
As we can see in all three games the margin is around 5%. Let’s assume that the gambler would like to bet on the three games simultaneously in order to get higher returns. But what is the margin in this case?
Calculate the Margin in Multiple Bets
In order to calculate the margin you will need to take the product of all possible events. In our case we have 3 x 3 x 3 = 27 possible events, and the product of those by row, is the odds that the bet pays off.
|Tottenham vs Bayern Munich||Juventus vs Bayer Leverkusen||Red Star Belgrade vs Olympiacos||Odds||1/Odds|
As we can see, although the margin of each single bet was around 5%, in the multiple bets of three games it becomes around 16.8% and as you add games, then the margin is becoming bigger and bigger.
We know that some gamblers would like to go for high returns. It is better to go for single bets of high odds (go for the underdog) rather than go for many bets at the same time. As a rule of thumb, before you place any bet, try to calculate the margins.