With operators constantly looking for ways to attract bettors, an innovation designed with this in mind is the 0% Margin Market.
This is used as a promotional tool to provide unmatched value to customers, where odds are offered with zero built-in margin for sportsbooks.
Predominantly used with 1X2 or winner markets on selected events, it enhances payouts for bettors. Read on to learn more…
How 0% Margin Markets Work
When compiling odds on various markets, sportsbooks apply a margin to ensure profitability regardless of the event's outcome. This means that the odds or prices offered to bettors are below what the likely probability truly is.
With 0% Margin Markets, this margin – also known as an overround – is disregarded entirely. This means that the odds are calculated to 100% as a probability for all outcomes, producing fair odds that equate to the actual chance of each outcome.
As an example, in an event with two equally matched outcomes, a typical market that includes a margin would have both outcomes priced at 1.91, but with a 0% Margin Market, both outcomes would be priced at 2.00 (or even).
What Problems 0% Margin Markets Solve
So why would an operator want to offer a market with no margin? Here are some of the issues this solution can solve…
Lack of Differentiation: The prices on offer can often seem pretty much the same regardless of which sportsbook a player chooses to bet with. 0% Margin Markets create a distinctive difference in terms of odds, providing a method for brands to stand out in a competitive market.
Customer Acquisition and Retention: Better pricing and greater value odds act as an attractive proposition for both new and existing bettors.
Lower Perceived Value: Regular odds can be seen as less attractive to bettors who are driven by value. Operators who offer 0% Margin Markets improve the perceived value offered by a sportsbook.
Benefits of 0% Margin Markets
Boosted Winnings for Customers: By eliminating the sportsbook’s margin, customers get more favorable odds and therefore increase profits on winning bets.
Enhanced Event Appeal: When there is immense focus and attention on certain sporting events, providing 0% Margin Markets makes your sportsbook more attractive and as such increases both engagement and turnover.
Customer-Focused Perspective: By offering event pricing in this manner, bettors perceive the sportsbook as being on the bettor’s side and having a customer-focused approach.
Cross-Sport Application: 0% Margin Markets are not limited to one sport and can be offered across multiple sports, most commonly football (soccer), tennis, basketball, snooker, boxing, MMA, baseball, and many more.
Increased Traffic and Volume: With bettors being able to recognize the added value provided by an operator offering 0% Margin Markets, they are more likely to place larger volume and stakes of bets and therefore increase traffic.
Conclusion
0% Margin Markets represent a smart and strategic approach to modern sportsbook promotion. The elimination of an operator’s margin provides customers with unmatched value, making a sportsbook far more competitive. It can also create buzz and attention, especially around major events in the sports calendar.
This tool not only attracts new customers but also serves as a great way to retain existing customers and re-engage inactive bettors.
The 0% Margin Market offering can be an important part of a brand’s marketing strategy and ensure the best odds for your players when it matters most to them.
