Spread betting is a modern form of gambling where bettors predict a range of outcomes instead of a binary outcome. It is popular in sports betting and allows for more creative bets. Bookmakers assign a spread of points between teams, and bettors can win even if their team loses but falls within the range. The purpose of a spread is to make it more attractive to bet on underdogs. Bettors can also place binary bets in addition to spread betting.
Spread betting is a particular type of gambling that involves correctly predicting a range, instead of a binary outcome. It is particularly common in the field of sports gambling, offering alternatives to simply betting on teams to win or lose. Spread betting is considered to be a relatively modern form of gambling, generally recognized as having been invented in the 1940s.
In normal win or lose betting, an individual simply bets whether or not an event will occur. It is known as binary gambling because there are only two possible outcomes. This type of betting usually revolves around winning and losing, but not always.
Binary gambling lends itself to any variety of situations, from political elections to financial markets to sports. It basically applies in any situation where the outcome is uncertain. Bettors in spread betting, by comparison, bet not only on whether or not an outcome will occur, but also on the accuracy of their prediction. Spread betting can therefore be more creative in the type of bets that can be offered, with a wide variety of conditions that can lead to winning money.
With spread betting in sports, accountants and casinos evaluate a given game and assign a spread of points between the two teams or competitors players are betting on. For example, in a match between two soccer teams, the spread may be seven and a half points between the favorite and the underdog. A bettor bets whether he thinks the final result of the match will be within that point or less. Bookmakers normally set the spreads at half point to avoid draws.
An underdog can lose the game but still score enough points to fall within the allotted range, something known as spread hedging. This way a player can win money on a losing team if he manages to cover the spread. Similarly, a team winning a match can prove to be a losing bet for some people, if they don’t win with enough points to cover the spread.
The purpose of giving a spread is to make it more attractive for people to bet on losers. By not having to bet that they win, there is more incentive to invest in them, to the advantage of bookmakers who earn on commissions and not on results. Bettors can also place binary bets in addition to spread betting. For example, someone might bet on an underdog to cover their spread, but also on the favorite to win outright. Spread betting has proved to be very popular worldwide since its emergence in the gambling industry.
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