What is Sharp Money
In relation to sports betting the words “Sharp Money” is on twitter all the time especially during football season. If you follow sports wagering you will hear industry types (Including myself) using the term casually when breaking down the line movement leading to complete chaos among new wagering enthusiasts. Sharp money is not only important for bookmakers to be able to do their job but by acknowledging its existence in the betting market it can be a great tool for the casual sports gambler who is looking for a return on their investment. All the time you hear that sportsbooks want50/50 action on each side so they can make the vigorish of 10%. The problem with that theory is that a balanced sports book is a myth.
Sure, When odds makers release the line they would love to be able to create point spreads that drive balanced action and just collect the vigorish. However, the reality is that bookmakers rely on these sharp customers (Privateplayerswins) to help shape and guide the markets to the appropriate number to maximize the profits. It’s important to know a sharp bettor isn’t always defined by the size of his wager. There are plenty of instances where a sharp bettor or a known pro will bet just a fraction of what a recreational bettor might play but the sports book will move the line in favor or respect the pro’s bets even though it’s for a small amount. The sportsbook will always respect the pro’s or individuals that they feel have an advantage over the long haul . Once the bookmakers know the players they have no problem making a stand on a betting spread.
Its important to know sharp money isn’t always right. People that think differently are surely mistaken. Even though we all want to win 100% of our wagers but when you consider the breakeven threshold for sports bettors is 52.48 (10% juice) hitting 55% becomes profitable and 60% is the ultimate goal .
Remember the next time you hear sharp money it’s not a guarantee that the bet will win. If that was the case all we would need to do is follow the smart money. The bookmakers usually hold pro’s to lower limits so in the end they usually end up rooting for the pro’s. The general public very rarely moves the betting line but they certainly contribute to the profit of the bookmakers.
