What is ROI in Sports Betting?

ROI Explained in Detail

ROI is the ultimate measure of betting success because it accounts for both the frequency of winning and the prices at which you bet. The formula is: ROI = (Net Profit / Total Amount Wagered) x 100. If you wagered $10,000 over a season and your net profit is $500, your ROI is 5%.

A 5% ROI might sound small, but in sports betting it is excellent. At a 5% ROI with $200 wagered per game and 5 games per week, you would earn $50 per week or $2,600 per year. Scale that up to $1,000 per game and you are earning $13,000 annually. The compounding effect of positive ROI over volume is how professional bettors make a living.

Sample size is critical when evaluating ROI. Anyone can have a 30% ROI over 20 bets due to luck. A 5% ROI over 2,000 bets is much more meaningful. Generally, 500 bets is the minimum sample to start drawing conclusions, and 1,000+ bets provides high confidence that the results reflect skill rather than luck.

Comparing ROI across different bet types requires context. A 3% ROI on spread bets is impressive because the market is very efficient. A 5% ROI on player props might be less impressive if the market is softer. The difficulty of the market matters when evaluating ROI figures, which is why sharp bettors often diversify across bet types to maximize total profit.