Explanation of a point spread for sports betting purposes
The point spread (known as the run line in baseball) is the handicap, or head start, that the linemaker gives the underdog. Bettors set the odds hoping to get bets on both sides of the game. Many bettors create their own power rankings on each team and with the help of a computer software program they will create a point spread. The Pointspread software will take into account stats, weather, and injuries, to name a few. Bettors may modify the computer-generated point spread on a case-by-case basis. Other factors are involved in setting the line. You’ll often hear references to public teams when you’re at a Las Vegas sports book or listening to sports betting radio. This is defined as teams that receive more betting action consistently on their sports betting side. You will often see punters increase the point spread on public teams to help even out the action and give the bookmaker a better chance of beating the public. Sports betting professionals often look at online sportsbooks to keep track of the amount wagered on each team. They want to keep track of the sports betting action in the hopes of betting against public teams the next time they play as their betting line will inflate giving the online or Las Vegas sports betting pros an edge.
The sportsbook wants to balance each side because Las Vegas and online sportsbooks earn a 10% commission for taking the sportsbook. That’s why it will cost you $11 to win $10 when you bet against the spread at a sportsbook. So, if you bet Team A $11 to cover the spread and Team A succeeds, you will win back $10 and receive back the original $11 for a total of $21. If Team A fails to cover the point spread, they will be out of their $11 sports bet. The projected profit margin of an online or Las Vegas sportsbook is 4.5% of their total sportsbook handling.
Rather than simply winning, the betting favorite must win by more than the point spread (“cover the spread”) for the favorite to win betting. Let’s say the Oakland Raiders play the Dallas Cowboys in the NFL. The bettors open the line with the Cowboys as favorites and the Raiders as underdogs. The linemaker could decide to give the Raiders an early four-point lead, which would look like this in Las Vegas or at the online sportsbook:
jeans -4
Raiders +4
If you bet on the Cowboys, you will win your sports bet if the Cowboys win the game by more than four points (that is, if your score is higher even after subtracting four points). However, if you bet on the Raiders, you will win your bet if they lose by no more than three points (ie if your score is higher after adding four points to it). If the final score results in a tie (in this example, if the Cowboys win by exactly four points), the bet will be graded as “Push” and your money will be refunded. The amount you can win is determined by the money line odds attached to the point spread. When no odds are listed, the line is standard (ie -110), which means you’ll need to bet $11 to win $10.
The money line will count a payout if the point spread settles to a key number of 3. Since many close games are decided by a field goal, Las Vegas and online sportsbooks are reluctant to move the line out of 3. Instead, the sportsbook will attach a money line to the game. Often sportsbook managers will make sportsbooks pay $12 to $13 dollars to win $10 on the betting side where sportsbooks get big action when the point spread is set to 3 in a soccer game. To help meet their projected return of 4.5% on their bet handling, sportsbook managers will move the line to help balance bets.