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Overround explained
Overrround is a critical piece of information that helps a bettor determine if they’re getting a value bet or not.
Overround can be described as the house edge – this implies that if a bet wins or loses, the sportsbook still turns a profit.
Ideally a betting market’s possible outcomes represented in a percentage format will add up to 100%, but this isn’t the case as the crypto sportsbook needs to cover their overheads.
The higher the overround percentage the less profit a bettor stands to make from a winning bet. Not only that but, the bigger the overround, the further from the true odds the market in question.
Working out overround
The easiest way to determine a sportsbook’s overround is to use an overround calculator.
To manually determine overround simply navigate to a basketball game and look at the 1st Half Odd/Even market.
These 2 odds should be the same and usually indicate the sportsbook’s equivalent to 50:50.
Then follow this formula: divide 1 by each price in the market, in this case both Cloudbet’s Odd/Even odds are set as 1.92.
- 1 ÷ 1.92 = 0.5208
- Multiply this number by 100 to get a percentage = 52.08%
- Double 52.08% to get the book percentage = 104.16%
- Then minus 100 to get to the 4.16% overround
Acceptable overround
Any sportsbook that has an overrround in excess of 6% should be avoided. Most crypto sportsbooks’ overround fluctuates between 4% and 6%.
Naturally a market with more possible outcomes such as 1×2 will have a larger overround as each outcomes has an overrround applied to it.