Bankroll management is arguably the most important skill in sports betting, yet it’s often overlooked by bettors eager to find the next winning pick. Without proper money management, even skilled handicappers can find themselves unable to continue betting through inevitable losing streaks.
What Is a Bankroll?
Your bankroll is the total amount of money you’ve set aside specifically for betting. This should be money you can afford to lose—separate from rent, bills, and other financial obligations.
The Unit System
Most successful bettors use a unit-based staking system. A unit is a fixed percentage of your bankroll, typically between 1-5%.
Standard Approach
- Conservative: 1-2% per bet
- Moderate: 2-3% per bet
- Aggressive: 3-5% per bet
For a $1,000 bankroll with 2% units, each bet would be $20. This approach ensures that even a significant losing streak won’t devastate your bankroll.
Why Consistent Sizing Matters
Variable bet sizing based on confidence is tempting but problematic. Studies consistently show that bettors are poor judges of their own confidence levels. A flat-betting approach removes this source of error.
Surviving Variance
Even bettors with a genuine edge experience losing streaks. With a 55% win rate on -110 bets (a very strong record), you can still expect streaks of 10+ losses to occur.
Proper bankroll management ensures you survive these inevitable downturns without going broke.
When to Adjust
Review your unit size periodically—typically monthly or quarterly. If your bankroll has grown significantly, increase your unit size. If it’s decreased, reduce it to preserve capital.
Key Principles
- Never bet more than you can afford to lose
- Use consistent unit sizing
- Separate betting funds from daily finances
- Expect and plan for losing streaks
- Adjust unit size as your bankroll changes