PayPerHead News: How AI Technology Is Impacting Sportsbook Software
Everywhere we look, we see artificial intelligence. Tesla and Uber are working on self-driving cars. Boston Dynamics has created an AI robotic dog.
Even in the sports betting industry, AI has taken hold. Although some in the industry are excited about artificial intelligence, there will most likely never be a time when the online bookie agent doesn’t exist.
AI Technology in Sportsbook Software
AI technology allows per head agents to offer a more robust array of betting markets than they’ve ever offered. It also allows agents to set up things like max betting limits and bet alerts.
Both, based on parameters, provide functions that help agents protect profit.
There could come a point when AI technology becomes fully artificial, where wagers are made based on algorithms, where human bettors don’t exist. Some call this the Holy Grail of sports betting.
It might happen, but an AI sports betting system won’t be effective.
Why an AI Sports Betting System Won’t Work
If you’re a pay per head agent, don’t worry about an AI sports betting system that makes decisions based on an algorithm. That will never happen in the sports betting industry.
If it does, it won’t make any more money than the decent pro player.
The Wall Street Example:
The best way to illustrate why this won’t happen in sports betting is to look at an industry where it has happened. On Wall Street, many traders work with sell points.
What a sell point does is trigger the sell of stock once a stock price has moved to a specific price.
It’s in fashion to describe sports betting and horse betting as like trading stock on Wall Street. It’s not true.
In fact, it might be the biggest misunderstanding about sports and horse betting out there.
When you buy stock on Wall Street at a certain price, say $25 per share, someone, or some company, is selling you the stock for $25 per share. That’s why it’s called a trade.
The seller is trading their stock to you for $25 per share. They receive $25 per share. You receive how many shares of the stock that you’ve bought.
That’s not the same in sports betting. Nothing is being exchanged when a sports bettor wagers on one side of a spread or another.
In fact, the sports bettor must pay a fee, like what a broker receives, to offer betting services.
This is why we’re always stressing that the pay per head industry is a customer service-based industry. That you, the online bookie, provides betting services. You don’t trade.
For it to be a trade, something must be exchanged. Wagers aren’t exchanged. In horse betting, odds on horses change dependent on how much money is bet on the horse in a specific pool.
Justify went off at 4/5 to win the Santa Anita Derby on April 7 because 4/5 represents the percentage of money in the win pool on Justify winning the Santa Anita Derby. Nothing was exchanged.
So, Why Won’t AI Betting Work?
Now, back to an AI system that can correctly predict the outcome of sports bets.
The problem with predicting any future event, even if the sun comes up tomorrow, is that even AI machines can only be sure 99.999% of the time.
That’s if the sun comes up tomorrow.
How accurate can an AI machine be predicting the outcome of sports events? Much less than 99.999% because things happen in sports events. Things almost never happen exactly as planned.
Also, takeout percentages in horse betting, and the vig in sports betting means that the AI machine must be right even more than average.
There’s another reason why you, the online bookie agent, shouldn’t worry about an artificial intelligent sports bettor making wagers.
You get paid no matter what.
Not only that, but you can always change betting lines to disrupt any possible AI algorithm, set a schedule limit override, or demand even more in juice, your fee, if someone uses an AI algorithm to make wagers.
That’s why you, the pay per head agent, will always be ahead of any artificial intelligent sports bettor.
PayPerHead.com is an industry-leading sportsbook management software. They stay ahead of the game, and keeping their agents in the know.
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It will also give agents access to the Oracle, which is an exclusive network with premium tips and ongoing changes in the industry, such as this article