Managing Your Bankroll Explained

Many novice sports bettors come unstuck as a direct result of incorrect bankroll management. This Online Betting 101 guide explains what a bankroll is, how to manage it like a pro and why that is so important.

Bankroll Management 101

A bankroll is a precise sum of money that you will use for online gambling purposes over a long timeframe, such as a year or a season. It should be money you could deal with losing in the worst possible scenario, and not money needed for bills, rent or necessities.

It was once a physical roll of bills, hence the name, but it is now a sum that should be managed online. The idea is to assign a portion of your bankroll to each wager you place, and to administer the bankroll carefully over time.

Bankroll Management Example

Let’s say you set aside $3,000 to bet on an NFL season. You could then decide to assign 2% of your bankroll as a base unit. You would then start out by placing $60 bets in Week 1, as $60 is 2% of $3,000.

You can stick to $60 bets all season, but most bettors stick to the percentage instead. For example, if you have a strong opening weekend, and your bankroll grows to $3,400, you would place $68 bets in Week 2. That means you capitalize on winning streaks, and your bets are smaller when losing, keeping you in the game long enough to turn the situation around.

Why Bankroll Management is Important

Many sports fans bet haphazardly on individual games, without giving any thought to bet sizes. That is generally a recipe for long-term failure, as you lose control and risk going bust too quickly.

Bankroll management ensures you do not chase down losses during losing streaks, and it helps you make clear, rational decisions about bet sizes, helping you in the quest to ultimately grind out long-term profits.