A betting strategy (also known as betting system) is a structured approach to

gambling Gambling (also known as betting or gaming) is the wagering of something of Value (economics), value ("the stakes") on a Event (probability theory), random event with the intent of winning something else of value, where instances of strategy (ga ...

, in the attempt to produce a profit. To be successful, the system must change the

house edge A casino game is one in which players gamble cash or chips on various possible random outcomes or combinations of outcomes, often in a casino environment. Such games are also available in online casinos, where permitted by law. Casino games can ...

into a player advantage — which is impossible for pure games of probability with fixed odds, akin to a

perpetual motion Perpetual motion is the motion of bodies that continues forever in an unperturbed system. A perpetual motion machine is a hypothetical machine that can do work indefinitely without an external energy source. This kind of machine is impossible ...

machine. Betting systems are often predicated on

statistical analysis Statistical inference is the process of using data analysis to infer properties of an underlying probability distribution.Upton, G., Cook, I. (2008) ''Oxford Dictionary of Statistics'', OUP. . Inferential statistical analysis infers properties of ...

. Mathematically, no betting system can alter long-term expected results in a game with random, independent trials, although they can make for higher odds of short-term winning at the cost of increased risk, and are an enjoyable gambling experience for some people. Strategies which take into account the changing odds that exist in some games (e.g.

card counting Card counting is a blackjack betting strategy, strategy used to determine whether the player or the dealer has an advantage on the next hand. Card counters try to overcome the casino house edge by keeping a running count of high and low valued c ...

and

handicapping Handicapping, in sport and games, is the practice of assigning advantage through scoring compensation or other advantage given to different contestants to equalize the chances of winning. The word also applies to the various methods by which t ...

), can alter long-term results.Blockchain betting Dapps
/ref> This is formally stated by game theorist

Richard Arnold Epstein Richard Arnold Epstein (March 5, 1927 in Los Angeles, California – July 5, 2016), also known under the pseudonym E. P. Stein, was an American game theorist. Education Epstein obtained his Bachelor of Arts degree from the University of Califor ...

in ''The Theory of Gambling and Statistical Logic'' as:

Examples

Common betting systems include: *

Card game A card game is any game that uses playing cards as the primary device with which the game is played, whether the cards are of a traditional design or specifically created for the game (proprietary). Countless card games exist, including famil ...

s –

Card counting Card counting is a blackjack betting strategy, strategy used to determine whether the player or the dealer has an advantage on the next hand. Card counters try to overcome the casino house edge by keeping a running count of high and low valued c ...

Sport Sport is a physical activity or game, often Competition, competitive and organization, organized, that maintains or improves physical ability and skills. Sport may provide enjoyment to participants and entertainment to spectators. The numbe ...

s –

Handicapping Handicapping, in sport and games, is the practice of assigning advantage through scoring compensation or other advantage given to different contestants to equalize the chances of winning. The word also applies to the various methods by which t ...

* Martingale *

Kelly criterion In probability theory, the Kelly criterion (or Kelly strategy or Kelly bet) is a formula for sizing a sequence of bets by maximizing the long-term expected value of the logarithm of wealth, which is equivalent to maximizing the long-term expected ...

* Split martingale * Anti-martingale * d'Alembert system * Oscar's grind

Horse racing

Some

horse racing Horse racing is an equestrian performance activity, typically involving two or more horses ridden by jockeys (or sometimes driven without riders) over a set distance for competition. It is one of the most ancient of all sports, as its bas ...

betting systems can be based on pure statistical analysis of the odds, while others also analyze physical factors (e.g. the horses' form, jockey form and lane draw). Common forms of betting systems for horse racing are: * hedging - betting on multiple outcomes in a race *

arbitrage Arbitrage (, ) is the practice of taking advantage of a difference in prices in two or more marketsstriking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which th ...

- lay the horse a low price and back it at a high price.

References

{{Gambling Strategy

Examples

Horse racing

See also

References