No matter what type of casino game you play or sports you bet on, nobody can be successful with every wager they place. Accepting that sometimes you will lose bets is all part of the gambling experience. And because you won’t win every time, bankroll management is crucial for you to still come out on top over the long-term. Just ask any professional gambler, and they will tell you how vital this type of control is as important as sensible budgeting in everyday life.
But bankroll management is not just for professionals. Amateur gamblers can also bet smarter with the right strategy. After all, everyone should know how to look after their cash.
First, What Is Bankroll Management?
In the world of gambling, bankroll simply refers to the amount of money you have allocated to gamble. You’ve probably heard the phrase that you should only bet what you are prepared to lose and nothing more. Well, your gambling bankroll is this amount. It should not exceed the amount of cash you are comfortable with losing.
Thus, it is a way of managing and strategizing how you use the money within your gaming account. It means calculating how much of your cash you will wager on individual bets, which is worked out at a percentage.
Naturally, any bets placed for free through online casino bonuses don’t account for a percentage of your money.
And the second aspect of managing your cash is keeping track of your bets on a spreadsheet to forecast where your overall balance is heading. This is important because you might have 10+ wagers in play at one time, which can then inform future decisions.
Why Bankroll Management Is Important
Most people allocate a small percentage of their money to individual bets, also known as betting units. New players should allocate 1-2% while even more experienced players will not stray too far from 3% of their cash holdings. This is an important strategy because it allows players not to be down and out with a bad run. On the other hand, it stops players from becoming overconfident after a hot streak and blowing their winnings on an individual bigger bet.
It could also benefit investors and those who want to avoid over-investing!
Bankroll Management and Different Markets
How you manage your cash balance may differ depending on the casino games you play. Here are some examples to give you food for thought:
- Sports Betting
The percentage model is a popular strategy in sports betting (and some other casino games). It is when a player always bets the same percentage of their money. For example, if the player’s cash total is $2,000 and the player wagers 1% on every bet, the first bet will be $20. They will continue to bet 1%, which will end up being more or less than $20 as they win or lose, respectively.
- Table Games
There are many table games and lots of strategies to go with them. Some table players may choose to adopt the above strategy, but some poker players take a different
approach. They have a stake percentage based on who they play against. The weaker the player, the more aggressive they bet and vice versa.
Although roulette will fall in the above category, it is worth mentioning because of the well known Martingale strategy. It is a high-risk strategy that, in some way, disregards bankroll management if the player is not prepared to walk away.
It involves betting on red or black, and every time you lose doubling the bet, which could mean blowing managing your money altogether (because you could end up doubling past what you are prepared to bet). The strategy assumes that red or black must fall in your favour eventually, and by doubling you will always win any losses back – then repeat until victory.