According to research firm H2 Gambling Capital, the online casino and gaming industry is estimated to be a $30 billion industry. When you visit a betting establishment — say in Las Vegas, your wagers should be done purely for entertainment.
The house always wins; after all, that’s how they pay for their employees, rent, electricity, and other expenses. Games of chances should be treated as a leisurely activity, and not as a business opportunity. Moderation helps you avoid financial hardship, stress, and other difficulties.
Close to 1 percent of the U.S. adult population have a gambling problem, according to the American Gaming Association. A study by Harvard Medical School found that nearly 6 percent of adult gamblers have experienced recurring negative consequences from betting.
Here are three tips for managing your bankroll, which is the (affordable) amount of money you can set aside for making friendly wagers:
- Be reasonable. Don’t risk more than 2 or 3 percent of your bankroll on any given day. For example, if you set aside a $500 budget for gaming entertainment, your maximum daily wager should be no more than $15 or $20. Losing that amount would represent just a tiny fraction of your overall bankroll. Thus, you get to keep your sanity.
- Live to fight another day. If you lose a small bet, move on with your life. Don’t chase losses. Chasing losses is what leads to progressively larger losses; and before you realize it, you’re hooked.
- Maintain composure. Visitors of live and online casinos eventually go through a negative downswing, which means losing a series of bets on house games. Games of chance involve variance (wins and losses). Exercise restraint and self-control so that losing streaks — when they occur — represent just a small portion of your overall entertainment budget.
Sports betting can be particularly enticing because casino customers may believe they possess unique insights into teams, strategy, and key players. Self-serving bias leads many sports fans to believe they can consistently beat the oddsmakers. However, professional bookies calculate appropriate odds and spreads to negate the betting advantages of most sports experts. Otherwise, they’d go out of business.
Players can learn from investors who risk capital in the stock market. Investors never risk too much money in any single stock or financial instrument to avoid debilitating losses. They take calculated risks, and they diversify their portfolio.
Spread your wagers around. Don’t bet your financial life on a single roll of the dice.
Bankroll management is one of the most important qualities to possess when you enter a betting parlor. Restraint and self-control is what saves you.
Don’t risk too much money at any time. Let your pre-determined budget dictate what amounts you’ll be risking.
Check out Marv Dumon’s sports blog on Examiner.com