For individuals active in sports betting, proper bankroll management is critical to long-term success. Many bettors concentrate on predicting winners and finding value, but even the best picks cannot save you without proper bankroll management. In this article, we’ll go over what a sports betting bankroll is, why it’s important, and how to manage it.
Your sports betting bankroll is the amount of money you set aside exclusively for betting. Consider it a sports betting investment fund. Unlike casual gambling, keeping a designated bankroll allows you to track your progress and reduces the possibility of losing more than you can afford.
Example: If you decide to allocate $1,000 as your sports betting bankroll, you’ll use this amount to place bets and track your wins and losses without dipping into other funds like rent or savings.
Poor bankroll management is one of the leading causes of failure in sports betting. Even the most knowledgeable bettors can go through losing streaks. Managing your bankroll allows you to stay in the game longer and avoid devastating losses. Here’s why it matters:
The first thing you need to do is figure out how much money you can set aside for sports betting. It should be an amount you’re comfortable losing, one that won’t interfere with your daily life if things don’t go as expected.
Tip: Start small if you’re a beginner. You can always increase your bankroll as you gain experience and confidence.
One of the most effective ways to manage your bankroll is by using a unit system. A unit represents a percentage of your bankroll, typically between 1% and 5%, depending on your risk tolerance.
Low-risk bettors: Bet 1%–2% of your bankroll per wager.
Moderate-risk bettors: Bet 3%–4%.
High-risk bettors: Bet 5% (but this is generally not recommended for long-term success).
Example: If your bankroll is $1,000 and you’re a low-risk bettor, you’d bet $10–$20 per wager (1%–2% of your bankroll).
Keeping track of every bet you place is crucial for analyzing your performance. Use a spreadsheet or a dedicated bankroll management app to record the following:
Date of the bet
Sport and event
Type of bet (moneyline, spread, over/under, etc.)
Amount wagered
Outcome (win, loss, or push)
Profit or loss
Why it’s important: Tracking helps you identify patterns, such as which sports or bet types you’re most successful at.
One of the most common errors bettors make is attempting to recover losses by raising their bet sizes. This tactic, referred to as chasing losses, can rapidly deplete your bankroll. Instead, it's important to maintain your unit size and have faith in your strategy. Losing streaks are a part of the game, but practicing disciplined bankroll management will enable you to weather them.
Regularly assessing your bankroll is essential, especially following a major win or loss. If your bankroll has grown, you may want to think about increasing your unit size slightly. Conversely, if it has shrunk, it's best to decrease your bet sizes to ensure you maintain a healthy percentage.
Example: If your bankroll grows from $1,000 to $1,500, you could increase your unit size from $10 to $15. However, if it drops to $500, reduce your unit size to $5–$10 to protect your remaining funds.
There are several tools available to help you manage your bankroll effectively:
Managing your sports betting bankroll isn’t just about protecting your money—it’s about creating a sustainable approach that allows you to enjoy sports betting while maximizing your chances of long-term success. By setting a budget, using a unit system, and tracking your bets, you’ll be well on your way to smarter, more disciplined betting.
It's crucial to understand that while bankroll management won't assure you of wins, it will help you maintain control and can greatly improve your likelihood of being profitable over time.
Are you a frequent bettor? Then make sure to choose a secure betting site to place your bets and you’re not unconsciously falling into common traps! Check out our guide on the biggest betting mistakes and how to avoid them.
