Sports betting is a unique investment opportunity because of something called compounding returns. As opposed to bank s, 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
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 s that compound monthly or traditional savings s 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, results page for the 2023-24 NBA season:
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.
