Return on Investment (ROI)

Definition:

In sports betting, ROI (Return on Investment) measures how profitable your bets are relative to the total amount of money you’ve risked. It’s expressed as a percentage and helps evaluate betting performance over time.

They serve two main purposes:

1. Provide a standardized way to measure long-term profitability.

2. Allow bettors to compare results regardless of bet size or bankroll.

Real-World Example

• A bettor wagers a total of $2,000 across an NFL season.

• Their total profit at the end of the season is $400.

• ROI = Profit ÷ Total Wagered × 100

  • ROI = $400 ÷ $2,000 × 100 = 20%

• This means for every dollar wagered, the bettor earned a 20% return.