What is Bankroll in Sports Betting?

Bankroll Explained in Detail

Your bankroll is your betting capital. It is money you can afford to lose without impacting your daily life, bills, or savings. The first rule of bankroll management is to never bet money you cannot afford to lose. Setting aside a specific amount and treating it as a separate investment fund is the foundation of disciplined betting.

The standard bankroll management approach is flat betting a fixed percentage of your bankroll on each wager. Most professionals recommend 1-3% per bet, with 5% being the absolute maximum for a very high-confidence play. If your bankroll is $1,000, a standard bet would be $10-$30. This sizing ensures that a losing streak will not wipe you out.

The mathematics of bankroll management explain why this discipline is so important. A bettor who risks 10% per bet and hits a 7-game losing streak, which happens to even the best bettors, has lost 52% of their bankroll. A bettor who risks 2% per bet and hits the same losing streak has lost only 13.2%. The smaller bettor can easily recover while the larger bettor faces a massive hole.

Bankroll management also means adjusting your bet size as your bankroll grows or shrinks. If you start with $1,000 and build it to $2,000, your standard bet size should increase proportionally. If your bankroll drops to $500, your bet size should decrease. This dynamic sizing ensures you never risk too much during downswings or bet too little during upswings.