To most sports gamblers, a professional bettor seems to have a perfect life. They wager on sports for a living, make their own hours, and earn serious profits.
Bettors pick the result of a sports event. The potential winnings they stand to win are determined by the odds provided by the sportsbook. Want to know if betting is legal in your state? A moneyline is a straight up bet on the outcome of a game. The favorite is always indicated by a minus sign (-), and the underdog is indicated by a plus sign (+). In the case of the favorite, the moneyline is the amount a bettor would have to wager to win $100.
That said, professional sports gambling may seem like a glorious career. However, it actually involves a long and slow climb to the top.
This guide discusses the realistic points of the path towards becoming a success when betting on sports. It also covers the small edges and long hours that gamblers must put it into turning pro.
Professional Sports Bettors Deal With Small Edges
When the general population envisions an expert sports bettor, they think of somebody who makes thousands of dollars with every wager.
They probably also picture a gambler who just can't seem to lose night after night. The reality, though, is much different than this.
Instead, they have a small edge that they exploit through large bets.
Many sports gamblers consider themselves successful if they win 50% of their wagers at -110 odds. Of course, gamblers can win more far more bets against the sportsbooks if they back heavy favorites (e.g. -300 or better).
But -110 is a nice measuring stick for how successful you are in terms of win-loss percentage. Even if you win 50% of the time at these odds, though, you still won't be making profits.
After all, you need to take the juice into account. A bookmaker takes 10% from the losing side in a -110 wager, meaning a 50% win rate won't get it done.
Some handicappers claim they correctly guess over 60% of their sports betting picks. However, no handicapper or professional sustains such a win rate in the long run.
At best, one can only expect to be successful on 55% of their bets long term. This win rate certainly isn't the 80% mark that many would envision for a pro.
You Can't Expect to Win Big With a Small Bankroll
You won't get very far if you have a 53% to 55% win rate and are only placing $10 bets. You can't even earn a dollar profit from each wager at this rate.
You need to exploit your long-term edge with big bets in order to make serious profits.
Here's an example on how much you might win as a lower-level pro:
- You place $2,000,000 worth of bets throughout the year.
- You win 54% of your wagers at -110 odds.
- 2,000,000 x 0.54 = $1,080,000 in winnings
- 2,000,000 x 0.46 = $920,000 in base losses
- 920,000 x 0.1 (juice) = $92,000 in juice paid
- 920,000 + 92,000 = $1,012,000 in total losses
- 1,080,000 – 1,012,000 = $68,000 profit on the year.
Unless you strictly bet point spreads, most profitable opportunities that you find aren't going to be at exactly -110 odds. But I keep referring to these odds because they make for the simplest examples.
You also need to capitalize with large wagers as well. You can only place these big bets if you have the bankroll to do so.
You Must Build Your Skills & Bankroll
Sports gambling definitely isn't something that you jump right into and immediately conquer. Instead, it requires you to put long hours into the matter.
You're most likely not going to win right away. Therefore, you want to study general sports betting strategy while slowly increasing your bankroll at the same time.
You also need to work on your handicapping skills.
This way, you won't lose too much money if your betting skills aren't yet up to par.
All the while, you should also be slowly adding to your bankroll. This process involves saving money and using it to build your gambling funds.
You probably don't have $50,000 or $100,000 just sitting around for gambling purposes. But you can build up to this amount through a combination of steady investments and improving your skills.
Eventually, You Need to Increase Your Bet Sizes
I highly advise that you don't jump into sports gambling and start placing $1,000 wagers right away. Eventually, though, you want to up your bet sizes to make more money.
How Sports Betting Works
With a large enough bankroll, you may even theoretically earn thousands of dollars per wager.
Of course, you want that bankroll to back up those huge bets.
Otherwise, the volatility could ruin your betting career.
Therefore, you should put serious consideration into your bankroll size. Here's an example:
- You want to place $500 bets.
- You also want a bankroll with at least 100 units to survive the volatility.
- You'll risk 1-3 units on each match, depending upon how confident you are.
- 500 x 100 = 50,000
- You should start with at least $50,000 (100 units at $500 apiece).
Can You Grind From a Low Roller Into a Pro Bettor?
If you're like most amateur online bettors, you'll probably start with a $50 or $100 deposit. These amounts give you just enough money to make several bets on the games you watch.
However, you may also have aspirations of turning your small bankroll into a fortune someday.
The odds are definitely against you depositing $100 and eventually becoming a top pro. Then again, though, everybody has to start somewhere.
The reason why most sports bettors feel this way comes down to two aspects:
- They fail to put the work into strategy and handicapping.
- They exercise poor bankroll management.
Sure, everybody who sets out on the road towards professional gambling blames bad luck or external factors for their failures. In reality, though, the average bettor is lazy and impatient.
They don't want to put an hour into handicapping a single bet. They want to put five minutes into handicapping 12 wagers and pray that they'll win most of the bets.
Furthermore, the typical sports gambler doesn't wish to grind their way up towards larger wagers. They want to quickly increase their bet sizes and take shots at the big time.
Long story short, it's possible to go from a small initial deposit to becoming a professional gambler. But you also need discipline, patience, and steady investments into your bankroll.
Most gamblers aren't willing to make these sacrifices. That said, it can sometimes feel impossible grinding up towards pro status.
Tips for Starting on the Path to Becoming a Pro
As discussed throughout this post, you're not going to become a professional bettor overnight. But you can at least get started on the right path by following the tips below.
Save Up for a Starting Bankroll
A $100 bankroll isn't going to help you become a professional gambler. Even a $1,000 bankroll won't do the trick.
You need a sizable bankroll so that you can make large bets and survive potential losing streaks. The amount needed all varies based on how much you want to get out of sports betting.
Of course, you don't have to put your betting activities on hold just because you don't have a small fortune.
Instead, you can learn the ropes by making small bets while slowly adding to your bankroll on the side. If you save up enough money, you'll eventually be able to become a serious pro.
Break Your Bankroll Down Into Units
Most professionals don't look at their bets in terms of dollars. Instead, they break their bankrolls down into units.
If you normally wager $100 per bet, then your unit size will be $100.
Of course, you'll likely bet more than $100 when you feel extremely confident about an outcome. Therefore, you might risk 2-3 units in these situations.
In any a case, here's an example on how to break your bankroll down into units:
- You have a bankroll worth $75,000.
- You want 100 units.
- 75,000 / 100 = 750
- Each unit size will be worth $750.
Narrow Your Focus
You might be tempted to bet on multiple markets. After all, wagering on a variety of sports is more entertaining than just one or two.
But the goal here is mastery. You stand a much better chance of making profits someday if you truly know a market.
Going further, you should also pay attention to a specific division rather than constantly trying to scout an entire league. If you know one division extremely well, then you'll be an expert on matches involving that division.
Never Stop Studying
Sports betting is fun because you may never truly master it. You could dedicate a lifetime to this pursuit and still get fooled by the bookies sometimes.
That said, you have lots of room to grow with betting. If you truly dream of becoming a professional, you should constantly be studying general strategies and handicapping tips.
As long as you never stop researching advice, you'll improve over time. Improve enough, and you could very well make a nice living off of sports gambling.
Conclusion
Sports gambling may seem like a quick path to riches for skilled bettors. But in reality, it's a long journey that involves lots of planning and patience.
You can't go from zero to 60 and expect to win big right away. Instead, you should grind your way up the ladder while slowly adding money to your bankroll.
With this approach, you can improve your handicapping efforts while also building your gambling funds. You should also steadily increase your bet sizes—especially as you develop an advantage.
Tax Day is right around the corner, and sports wagering winnings should be part of a bettor's annual filing.
Nathan Rigley, a lead tax research analyst at H&R Block, spoke with TheLines.com to offer advice for bettors making preparations for 2018 and beyond.
The first thing to realize is that any winnings are taxable and bettors should include it on a tax return.
'Just because a taxpayer doesn't receive a tax form, (it) does not make the winnings tax-free,' he said. 'Taxpayers still have a responsibility to report their prize on their tax return as ‘other income.''
Football Gambling Online
Don't neglect to report it
Don't be caught unaware. No matter the amount, gambling winnings are taxable. Those winning a substantial amount are likely to receive a tax form, and the IRS will also receive that form.
Those winnings will usually be reported via form W-2G or 1099-Misc. The IRS will then compare the information to the taxpayer's return. Not reporting can be costly, triggering penalties and interest.
'Failing to report the prize as income is the surest way to get audited,' Rigley said.
That could certainly be uncomfortable and cause the type of scrutiny most bettors would like to avoid.
Record keeping 101
Serious bettors must not only be savvy with betting lines, but also with record keeping. The IRS advises gamblers to keep an accurate diary or record to substantiate wins and losses on a tax return.
Plan to keep track. A little extra work can pay big dividends in the long run. Rigley recommends bettors include the following in their records:
- The date and type of each wager.
- The name and location of the bet.
- The names of other people with the bettor at the betting establishment.
- The amount won or lost.
Bettors should also keep verifiable documentation of losses, which include:
- Wagering tickets
- Canceled checks
- Credit card records
Mobile wagering makes keeping track of wagers much easier. Players should have easy access to bets made throughout the year. That helps in reporting overall wagering income.
Track those wins and losses
Bettors should keep track of their winnings, but also their losses. If they won big and show a profit for the year, they can offset winnings with losses to help lower a tax burden.
Only winners can deduct losses, and the full amount of winnings and losses must be reported when filing. However, Rigley notes that gamblers may deduct losses, but only by as much as they report in winnings.
Place Sports Bet
For example, suppose a taxpayer entered two betting pools: One at the office and one among friends. Both had a $10 entry fee, and the player won $100 from the office pool. The bettor should report $90 in winnings, deducting the $10 fee.
For itemizing, the entry fee from the losing pool and other gambling losses could be taken as an itemized deduction. That would be capped, however, at a maximum of the amount won being reported, in this case, $90.
Do the new tax laws have any impact?
Taxpayers will notice some changes when filing this year. The Tax Cuts and Jobs Act changed many aspects regarding itemized deductions. That includes the elimination of some deductions that were subject to a 2% floor of adjusted gross income.
'This has been impactful for many taxpayers,' Rigley said. 'Luckily, the deduction for gambling losses, though a miscellaneous deduction, was not subject to this floor.'
This is advantageous to gamblers. They can continue to claim gambling losses as an itemized deduction to the extent of their gambling income.
Sports betting as a full-time job
The majority of bettors may fall into the recreational or hobby group. But those who bet professionally as their sole means of earning a living have different benefits and requirements.
These bettors would need to file as a business with a Schedule C form.
Filing as a business allows deducting expenses, but also subjects them to self-employment tax and possibly quarterly estimated payments. It's as if that bettor runs his or her business and files accordingly.
The new tax laws have had some changes on this aspect, however. Bettors can no longer deduct non-wagering business expenses in excess of net wagering income. Thus, reporting a loss as a gambler isn't possible.
Planning for next year
The new sports betting landscape has brought many more into the wagering ecosystem. Players new to betting may want to start planning for filing their 2019 taxes.
Rigley strongly advises maintaining detailed gambling records.
'The foundation of any tax return is one's records,' he said. 'In order to ensure the best outcome on the tax return, you have to make sure you can back up anything reported on your return, including the reporting of inherently personal activities like gambling.'
And if you do make a nice score, Rigley suggests making that first check to the tax man.
Set aside an estimated payment on taxes you'll owe on those winnings.
'This is essentially a deposit toward your tax liability,' he said. 'The reason we suggest this is that it helps to avoid any underpayment penalties for failing to deposit enough taxes throughout the year. And, psychologically, it seems easier to write that check when the income is new rather than be hit with the balance due down the road when the return is filed.'
Save Up for a Starting Bankroll
A $100 bankroll isn't going to help you become a professional gambler. Even a $1,000 bankroll won't do the trick.
You need a sizable bankroll so that you can make large bets and survive potential losing streaks. The amount needed all varies based on how much you want to get out of sports betting.
Of course, you don't have to put your betting activities on hold just because you don't have a small fortune.
Instead, you can learn the ropes by making small bets while slowly adding to your bankroll on the side. If you save up enough money, you'll eventually be able to become a serious pro.
Break Your Bankroll Down Into Units
Most professionals don't look at their bets in terms of dollars. Instead, they break their bankrolls down into units.
If you normally wager $100 per bet, then your unit size will be $100.
Of course, you'll likely bet more than $100 when you feel extremely confident about an outcome. Therefore, you might risk 2-3 units in these situations.
In any a case, here's an example on how to break your bankroll down into units:
- You have a bankroll worth $75,000.
- You want 100 units.
- 75,000 / 100 = 750
- Each unit size will be worth $750.
Narrow Your Focus
You might be tempted to bet on multiple markets. After all, wagering on a variety of sports is more entertaining than just one or two.
But the goal here is mastery. You stand a much better chance of making profits someday if you truly know a market.
Going further, you should also pay attention to a specific division rather than constantly trying to scout an entire league. If you know one division extremely well, then you'll be an expert on matches involving that division.
Never Stop Studying
Sports betting is fun because you may never truly master it. You could dedicate a lifetime to this pursuit and still get fooled by the bookies sometimes.
That said, you have lots of room to grow with betting. If you truly dream of becoming a professional, you should constantly be studying general strategies and handicapping tips.
As long as you never stop researching advice, you'll improve over time. Improve enough, and you could very well make a nice living off of sports gambling.
Conclusion
Sports gambling may seem like a quick path to riches for skilled bettors. But in reality, it's a long journey that involves lots of planning and patience.
You can't go from zero to 60 and expect to win big right away. Instead, you should grind your way up the ladder while slowly adding money to your bankroll.
With this approach, you can improve your handicapping efforts while also building your gambling funds. You should also steadily increase your bet sizes—especially as you develop an advantage.
Tax Day is right around the corner, and sports wagering winnings should be part of a bettor's annual filing.
Nathan Rigley, a lead tax research analyst at H&R Block, spoke with TheLines.com to offer advice for bettors making preparations for 2018 and beyond.
The first thing to realize is that any winnings are taxable and bettors should include it on a tax return.
'Just because a taxpayer doesn't receive a tax form, (it) does not make the winnings tax-free,' he said. 'Taxpayers still have a responsibility to report their prize on their tax return as ‘other income.''
Football Gambling Online
Don't neglect to report it
Don't be caught unaware. No matter the amount, gambling winnings are taxable. Those winning a substantial amount are likely to receive a tax form, and the IRS will also receive that form.
Those winnings will usually be reported via form W-2G or 1099-Misc. The IRS will then compare the information to the taxpayer's return. Not reporting can be costly, triggering penalties and interest.
'Failing to report the prize as income is the surest way to get audited,' Rigley said.
That could certainly be uncomfortable and cause the type of scrutiny most bettors would like to avoid.
Record keeping 101
Serious bettors must not only be savvy with betting lines, but also with record keeping. The IRS advises gamblers to keep an accurate diary or record to substantiate wins and losses on a tax return.
Plan to keep track. A little extra work can pay big dividends in the long run. Rigley recommends bettors include the following in their records:
- The date and type of each wager.
- The name and location of the bet.
- The names of other people with the bettor at the betting establishment.
- The amount won or lost.
Bettors should also keep verifiable documentation of losses, which include:
- Wagering tickets
- Canceled checks
- Credit card records
Mobile wagering makes keeping track of wagers much easier. Players should have easy access to bets made throughout the year. That helps in reporting overall wagering income.
Track those wins and losses
Bettors should keep track of their winnings, but also their losses. If they won big and show a profit for the year, they can offset winnings with losses to help lower a tax burden.
Only winners can deduct losses, and the full amount of winnings and losses must be reported when filing. However, Rigley notes that gamblers may deduct losses, but only by as much as they report in winnings.
Place Sports Bet
For example, suppose a taxpayer entered two betting pools: One at the office and one among friends. Both had a $10 entry fee, and the player won $100 from the office pool. The bettor should report $90 in winnings, deducting the $10 fee.
For itemizing, the entry fee from the losing pool and other gambling losses could be taken as an itemized deduction. That would be capped, however, at a maximum of the amount won being reported, in this case, $90.
Do the new tax laws have any impact?
Taxpayers will notice some changes when filing this year. The Tax Cuts and Jobs Act changed many aspects regarding itemized deductions. That includes the elimination of some deductions that were subject to a 2% floor of adjusted gross income.
'This has been impactful for many taxpayers,' Rigley said. 'Luckily, the deduction for gambling losses, though a miscellaneous deduction, was not subject to this floor.'
This is advantageous to gamblers. They can continue to claim gambling losses as an itemized deduction to the extent of their gambling income.
Sports betting as a full-time job
The majority of bettors may fall into the recreational or hobby group. But those who bet professionally as their sole means of earning a living have different benefits and requirements.
These bettors would need to file as a business with a Schedule C form.
Filing as a business allows deducting expenses, but also subjects them to self-employment tax and possibly quarterly estimated payments. It's as if that bettor runs his or her business and files accordingly.
The new tax laws have had some changes on this aspect, however. Bettors can no longer deduct non-wagering business expenses in excess of net wagering income. Thus, reporting a loss as a gambler isn't possible.
Planning for next year
The new sports betting landscape has brought many more into the wagering ecosystem. Players new to betting may want to start planning for filing their 2019 taxes.
Rigley strongly advises maintaining detailed gambling records.
'The foundation of any tax return is one's records,' he said. 'In order to ensure the best outcome on the tax return, you have to make sure you can back up anything reported on your return, including the reporting of inherently personal activities like gambling.'
And if you do make a nice score, Rigley suggests making that first check to the tax man.
Set aside an estimated payment on taxes you'll owe on those winnings.
'This is essentially a deposit toward your tax liability,' he said. 'The reason we suggest this is that it helps to avoid any underpayment penalties for failing to deposit enough taxes throughout the year. And, psychologically, it seems easier to write that check when the income is new rather than be hit with the balance due down the road when the return is filed.'
Here's hoping that big win comes, though bettors should plan on paying Uncle Sam.
