By the end of this lesson, you will:
Now that you understand how a bookmaker works, it’s time to learn about the different types of bookmakers. Bookmaking is a business, and every company has its own business model. These business models are what differentiate one bookmaker from another.
Broadly, bookmakers can be classified into two main categories:
A sharp bookmaker invests heavily in setting accurate lines, meaning their no-vig odds are as close as possible to the true probability of each outcome.
A sharp bookmaker is characterized by:
Because of these features, sharp bookmakers mostly attract professional punters, who in turn help sharpen the lines even more.
Examples: Pinnacle, BetOnline, Circa.
If you look at the extreme right column on the selected bet, you’ll see the vig.
Also, for each outcome, you’ll see the limit.
A soft bookmaker doesn’t focus on keeping lines razor-sharp. They often update their odds more slowly and may follow the odds of sharp bookmakers rather than setting their own in real time.
Examples: Stake, DraftKings, SportyBet.
It’s important as a punter to know the differences between these two types of bookmakers and to use their business models to your advantage. This is exactly what data-driven sports betting allows you to do, spotting opportunities where soft bookmakers lag behind and sharp bookmakers are already priced correctly.