In my opinion?

Online gambling is one of the biggest scams that you’ll ever come across.

Because even though gambling is a legitimate ‘business’ in a legal sense.

I’d argue that the ethics of the whole operation is so off-kilter – I’d still consider it to be a ‘scam’.

Here’s how the online gambling industry is able to take your money and get away with it.

(Plus, discover how to turn the tables on these scumbags and beat them at their own game using 3 proven techniques).

5 Ways the Online Gambling Industry Robs You Blind

The gambling industry is worth billions in the UK alone.

And the internet now allows these betting companies to essentially rob you of your money in your own home.

Their business model is alarmingly simple.

Yet brutally effective:

1: Skew the odds so that you’re mathematically certain to lose money if you play for long enough;

2: Use manipulative marketing tactics to encourage you to start gambling based on emotion and faulty logic.

The outcome?

You end up betting on false hope.

Playing right into the hands of their crooked funnel.

Here’s how they do it.

Scam #1: Sports Betting – The Overround

The ‘overround’ is the bookmaker’s mathematical advantage.

It’s ingrained into their odds to ensure that they collectively take in more money than they pay out over time.

Now, it’s a bit more complicated in practice.

Because they have to ‘balance their books’ to try and get their actual profits as close to their calculated margins as possible.

And there are multiple factors that influence how the bookmakers set their odds.

But the fundamental premise is simple:

The bookmaker aims to pay you LESS than what’s mathematically fair when you WIN – but keep ALL of your money when you LOSE.


This creates an imbalance.

Which means that eventually, you’ll lose more money than you’re ever able to win.

If you keep betting for long enough.

The Classic Coin Flip Example

To illustrate this point.

Here’s how a bookmaker would scam you if you were betting on coin flips.

The ‘true’ chance of heads showing up is 50%.

Likewise, for tails.

Because there are only two possible outcomes.

Therefore, the fair odds for heads or tails would be 2.0.


Why?

Because half the time you’ll win one unit.

And lose one unit the other half of the time.

Meaning that you’ll break even over a large sample of bets.

We can prove this mathematically as follows:

Return = (0.5 x (+1)) + (0.5 x (-1)) = 0


Downgrading the odds

To make money, the bookmaker would simply offer you worse odds.

Probably something like 1.90.

This would cause you to lose money over a large sample of bets.

Because half the time you win 0.9 units.

But lose one unit (your entire stake) the other half of the time.

More specifically, you’ll average a loss of 0.05 units per bet because:

Return = (0.5 x (+0.9)) + (0.5 x (-1)) = -0.05

Inflated Overrounds

Given the chance?

The bookmakers will crank up their edge to the maximum if they think they can get away with it.

Here’s where you’re going to get stung the most.

1: The Grand National

This year, the Grand National will have 40 horses starting the race.

This increased number of runners allows the bookmakers to inflate their overrounds to absurd levels.

125 – 150% is to be expected.

To put that into perspective, for every £125 – £150 the bookmaker accepts in bets.

They pay back just £100 to the punters.

Avoid Betting Markets With Lots of Outcomes

As a general rule?

Markets with a lot of potential outcomes typically have large overrounds.

But the Grand National is the biggest scam of them all.

Because the volume of ‘dumb’ money coming into the markets from the uneducated betting public spikes enormously.

Just keep that in mind when you’re picking a horse based on it’s name!

2: Accumulator and Multiple Bets

Every once in a while.

You’ll hear about some lucky sod who’s won £100,000’s from a £2 ‘accumulator’ bet.

The reality?

Accumulators are huge earners for the bookmakers because it allows them to compound their overrounds.


That is, for each additional selection that you add to your multiple bet.

The overround percentage will increase at an exponential rate.

For example, take a 7-fold accumulator bet where each selection has a 5% effective edge.

The net overround is 40.71% – rather than 35%:

Accumulator Overround Exponential Increase

3: Cashing Out In-Play

This is perhaps the subtlest con of all.

Because you might think that you’re being clever cashing out your pre-match bet at half time for a £100 profit when your team is 1-0 up.

But do you know what actually happens when you hit the ‘cash out’ button?

You’re actually placing a SECOND bet to hedge your initial bet.

And guess what?

This second bet is ALSO subject to the overround ‘tax’!


Thus allowing the bookmaker to fleece you yet again.

Scam #2: Online Casinos – The House Edge

The fact that online casinos even exist is actually mind-boggling to me.

I cannot believe that you’re allowed to fire up your computer and tip your entire week’s wage into what are essentially the most expensive video games you’ll ever play.

Because every single ‘fixed odds’ game of chance has been ‘rigged’ in favour of the casino.

By applying their house edge.

Which is basically the same as the bookmaker’s overround.

Except the casino’s house edge can be deployed with a horrific level of precision.


Because unlike sports betting, the exact probability of each outcome in a fixed-odds game is known with 100% mathematical certainty.

This makes setting the games to scrape a predictable profit over a large sample of bets a trivial matter.

Examples of Typical House Edges

The house edge is expressed as a percentage.

For example, a casino game with a house edge of 5% means that you’ll average a loss of £5 for every £100 that you wager on that game.

Here are the house edges of some common casino games:

  • Blackjack (if played optimally) – 0.5%
  • French Roulette – 1.35%
  • European Roulette – 2.7%
  • American Roulette – 5.26%
  • Slots – typically up to 10% (or more).


For example, there are 37 numbers to bet on in a game of European Roulette.

And thus a fair payout on a ‘straight up’ bet would be 36:1.

But as you can see, you’re only paid out at 35:1:

Roulette Payout Structure


This means that you’re being short-changed on your winning bets.

Whilst your entire stake is kept by the casino on your losing bets.

Again, you’ll lose more money than you’ll ever win if you play under these crooked rules for long enough.

What About Games of Skill?

Games of skill like poker are a bit different.

Because you’re playing against other people – who usually make mathematically sub-optimal decisions.

So technically, you could make money long-term playing online poker.

But you’ll need to be good enough to beat the casino’s rake too.

Which is typically 2.5 – 10% of the pot per hand.

Scam #3: Online Bingo – Sickening House Edges

One of the first ever online bingo sites was called Bingo Zone – launched in 1996.

The site made money by serving targeted ads to their users.

Modern-day online bingo is a vile creature by comparison.

Where money is made by offering house edges that typically ooze beyond the 40% mark.

Just keep that in mind.

Because no amount of ‘lucky dust’ is going to change the fact that you’re throwing away more than £40 per £100 wagered on average on these games.

Online Bingo Room Examples


Scam #4: The National Lottery – Stealth Tax?

The odds of winning the ‘Lotto’ are 45,057,474 to 1.

In other words?

It’s not gonna happen.

So…

Why is this form of gambling so heavily promoted on TV and consequentially so socially acceptable?

Probably because the UK government stands to benefit from the revenue generated.

And whilst much of that money is spent on ‘good causes’.

Many argue that this is a form of stealth tax.

Because they say that the lottery is marketed to – and played mostly by – the working class.

Yet the subsequent money generated is then funnelled into projects that typically benefit the middle class.

This National Lottery ‘stealth tax scam’ is open to debate.

But let me ask you this…

Is it ethical to heavily promote a game where the chances of winning are statistically less than that of being hit by lightning?

Yet the target audience are the kind of people who will continue to play because they fear that their numbers might ‘come up’ the week they don’t enter?

It’s exploitation of this kind of faulty logic that the gambling industry is built upon.

Scam #5: Manipulative Marketing – Getting You Hooked

And this is where things get really dark.

If people really knew how much of a scam the online gambling industry really is.

They wouldn’t play.

So, in order for this toxic entity to remain alive.

The gambling companies need to appeal to peoples’ emotions and faulty logic to get them to part with their cash.

And that’s the job of their marketing teams.

How to Beat the Betting Industry at its Own Game

However.

There are a few ways in which we can exploit legal betting loopholes to tip the odds in our favour.

And actually make money from online betting sites.

Here’s three that I’ve personally used with excellent results.

1: Matched Betting

The online bookmakers’ free bets are their biggest weakness.

Why?

Because after a while, most folks realise that gambling is a con and stop betting.

So, in order to continue making money, the bookmakers are forced to give away some value in the form of free bets.

Granted, they try to make it as difficult as possible for you to walk away with a profit.

But if you follow the right steps…

You can make money.

For example, I made more than £2,001 from matched betting in a single month.

Without gambling, cheating, or doing anything illegal.

Check out my Matched Betting Guide to learn how to to get started.

2: Casino Matched Betting

Much like the online bookmakers.

Casino sites need to offer bonuses as a way to incentivise people to bet.

And by using some clever mathematical formulas.

It’s possible to play through bonuses that have a ‘positive expected value’ to make a long term profit.

For example, I’ve managed to make more than £500 each month on average for the last 11-months.

Simply by using ‘casino’ matched betting strategies:

Advantage Gambling Profit vs Expected Value Graph


This strategy is NOT risk-free.

But it’s mathematically proven to work.

The secret to success is to manage your risk and progressively scale up the value of the offers.

You can learn how to do this in my Casino Matched Betting Guide.

3: Sports-Based Value Betting

Unlike the casino games.

The exact probability of some sporting outcome cannot be calculated with absolute accuracy.

This means that you can make money if you can spot the bookmakers’ pricing mistakes.

However, identifying these value bets with the required consistency is incredibly difficult.

One way around this is to use a sports betting tipster.

However, this is a risky business in itself.

Check out my Guide to Making Money With Sports Betting Tipsters to learn how to get started.

Conclusion: Online Gambling is a Scam

The online gambling industry may indeed be ‘regulated’.

But in light of the devastating effects that gambling can have on peoples’ lives.

And the comparatively insensitive, brash, and unethical marketing practices used by these companies.

Recreational online gambling is a scam in my opinion.

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