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Sports Betting and the Gambler's Fallacy
19th February, 08:45Champions league holder, Liverpool is facing an early exit in the Champions League after suffering a shock one nil...
Many sports bettors should give credence to the avoidance of the gambler's fallacy, also known as the "Monte Carlo fallacy" to win bets. This concept does have importance in the betting world. Understanding and leveraging it improves your ability to profit from sports betting such as sbobet.
The gambler's fallacy has existed for as long as bookmakers and casinos have. Gamblers can now analyze specific historical data to help them in their decision making on their current bets, avoiding this theory, and beating the house or the bookmakers.
So what is the gambler's fallacy? We take a look at this concept and how to avoid falling victim to it as you place your bets.
The gambler's fallacy refers to a situation where the sports bettor expects a reversal in outcomes after a sustained betting run of one outcome. By their biased psychology, a gambler will expect a loss after a series of wins (or vice versa).
A simple example that illustrates this theory is the coin toss. If you flip a coin four times, with the outcome being heads, the gambler's fallacy would expect the fifth flip to be tails. This line of thinking is flawed, especially in sports betting.
People first took notice of the gambler's fallacy in 1973, when Daniel Kahneman and Amos Tversky published their work in the field of cognitive biases. Kahneman, a behavioral economist, and Tversky, a psychologist, pioneered this field of study, which looks at what causes people to make biased or irrational decisions.
The gambler's fallacy has many applications in sports betting, especially if we look at the casino and bookmaker environment.
Gamblers that believe that the sequences of even and odd, or black and red will even out during just one session of roulette, typically lose to the house. This concept shows how biased and irrational the belief is that spins influence one another.
In sports betting, it is not possible to apply the concept because sports events occur within a competitive environment, and with continuity. These conditions negate sports events as completely random and independent events.
Athletes, the main participants in sports events, have memories. Inanimate objects such as coins or dice do not. The exact probability of a sporting event is unknown, and also, all probabilities must factor in humans.
So how do you leverage the gambler's fallacy in sports betting to improve your winning streak? As your losses and wins add up, make continuous adjustments to refine your betting strategy and use various tools available to pick winners consistently.