Tuesday, October 27, 2009

Handicapping Sports Betting Futures Plays

By Ross Everett

Many serious sports bettors consider the futures wager the province of rank amateurs trying to go for the big killing. Theyre the sports betting equivalent of the wanna-be stock investor who always gripes if only I had bought Microsoft when they went public. Theyre not the type wholl do the work to grind out profits in the market, nor are they forward thinking enough to find the next big company to go public. Theyd rather lay some money on a high priced dog and hope for the best, which seldom (if ever) occurs. Right now at some sportsbooks a $100 bet on the Cincinnati Bengals to win the 2010 Superbowl will pay back $10,000. The problem is that the true odds of Cincinnati winning the Superbowl are probably in the range of 50,000 to 1 which makes the +10000 youre getting in this bet a bad value from the get-go.

Even for the more pragmatic bettor, the inherent problems with futures wagers are readily apparent. You have to tie up your wagering capital for a long time. More significantly, once your bet is down youre at the mercy of the countless interceding events that can influence the fortunes of a sports team. Its hard enough trying to weigh the significance of scheduling, injuries, personnel movement and so forth on a day to day basis. Controlling for all of these variables over an entire season is impossible.

Despite their downsides, futures bets have an important place in the investment oriented sports bettor's arsenal. The 'prime directive' for serious sports betting is to think of it not in terms of wins and losses, but in terms of value. Futures wagers frequently present opportunities to lock in line value and create overlay situations. In some cases, judicious use of futures can produce situations in which a bettor can realize a profit from any outcome! Below are some basic concepts for properly using futures wagers to maximize value.

Futures can present an opportunity to 'earn' a greater value on certain bets. For example, it has become common for sports books to take action on entertainment events like the Academy Awards. By paying close attention to Hollywood gossip and entertainment news, a bettor can actually have a better take on these outcomes than the bookmaker.

With many books taking bets on awards like 'Best Picture' before nominations are even announced, a bettor has a great opportunity to find overlay situations. By staying on top of the entertainment news and accurately predicting which films will be nominated, its often possible to get substantially better prices than will be available after their announcement.

Making the Academy Awards an even better candidate for futures wagers is the nature of the film business itself. The release schedule for films is set well in advance, and after the year end cut off date no 'surprise' releases can sneak in to consideration. At this point, its relatively easy to narrow down the serious contenders and with some work to come up with a 'short list' of Oscar candidates.

It's also possible to leverage value in the 'stick and ball' sports with future wagers. There are obviously more variables in sports than in the entertainment industry and the top teams are never going to be found 'under the radar'. For example, you can already bet that the Patriots will win the 2010 Superbowl but you'll be hard pressed to find a value price on such a popular team with the general public.

To find value on this sort of wager you need to look for 'dark horse' candidates. For example, at midseason you could have bet on the Carolina Hurricanes to win the 2009 Stanley Cup at prices as high as 25/1 or 30/1. Now, they're one of four teams remaining and are priced at 5/1 to 7/1 depending on the book.

This play didn't necessitate a crystal ball or a Canadien genie with a profound interest in hockey--instead, it was a simple matter of determining teams that offered true odds of championship success that were lower than the price offered in the future bet. At prices like 25/1 or 40/1 its possible to back several dark horse 'candidates' and if one or more enjoy postseason success it presents a number of opportunities to hedge and guarantee a profit.

Also, don't forget to consider 'the field'. Many futures wagers lump a number of teams or competitors together as 'the field' and offer a single price to bet them all. Occasionally, the quick thinking handicapper can find unique value situations. For example, after Dale Earnhardt's tragic death in 2001 some sportsbooks continued to offer a 'field' position on rookie of the year. A bettor who followed NASCAR closely would have quickly realized that Kevin Harvick--who replaced Earnhardt in his Richard Childress racing Chevy--qualified for the 'rookie of the year' award and could have bet the field at prices as high as 15/1. After he won his first race, the price for 'the field' dropped to 2/1 and by midseason 'the field' was a -250 favorite.

This is obviously a best case example, but there have been similar circumstances that were still good value plays but didnt work out perfectly like the Harvick situation. Several years ago it wasnt uncommon to find a field bet on NASCAR road races that allowed you to bet several of the road course specialists like Ron Fellows, Boris Said and Scott Pruett with one bet. You wont be able to take advantage of the field bet often, but if you keep your eyes open and think out of the box it can be very profitable when it does occur.

Of course its crucial to shop around for any futures book play to find the best price. It's a smart thing to do on any wagering proposition, but the price differential on futures wagers often vary widely from book to book. A little bit of work can produce a significantly better price which means more value.

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