Gambling 101: What Is Exposure?
What does exposure mean to bookmakers and bettors, plus how does it affect the odds? We are breaking it down today on Sports Illustrated's Gambling 101.
Exposure? What is it? Well From a player’s perspective, exposure refers to any amount of money used to place a bet. For example, if a bettor wagers $100 on an NFL game, their bankroll is exposed to losing the $100 invested on that contest. But Exposure can also apply to Bookmakers. They can face unwanted risk if they take in more money on one side of a betting option than the amount wagered on the other side.
An example of this is if a favorite draws in $11,000 worth of bets, and the underdog side only has $5,500 bet on it, the bookmaker is exposed to a $4,500 loss if the chalk side wins the contest. So how does bookmaker exposure affect betting odds? Good question.
If a contest is being wagered on heavily, and a sports book faces too much exposure, they may circle the game. That drastically reduces betting limits on the match and will cap the risk at a lower level. Adjusting betting odds, and/or juice prices, is the second tool. If the Under is being bet on heavy they may reduce their UNDER option exposure by changing the juice in an attempt to draw in money on the OVER. Clever right?
Players can reduce their risk by placing hedge bets on active wagers or taking a live bet if necessary. When it comes to exposure though, recreational bettors are wise to never bet more than 10% of their bankroll on any single day. But if you get a little crazy and need some help, make sure to bookmark sports illustrated glossary of terms and tune in next time for another Gambling 101 here on si.com
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