👉 Betting odds

Betting odds

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We assume that the selection of odds follows a power-law distribution with an exponent α , with a minimum odds of 1 and a maximum odds of 50, where the maximum odds is set to ensure a finite mean of the odds distribution. Starting from a minimum bet of 1, we multiply wagers by a ratio γ each time the gamblers lose one round and return to the minimum bet each time they win. Once the wager reaches a preset maximum bet value 10000, we reset the gambler with a minimum bet. MSD obtained from 10 billion individual simulations is shown in Fig. 8. Different curves correspond to different exponents in odds distribution. We can see that the MSD initially presents an exponential-like growth, before the growths reduce to a linear function. It is easy to explain the exponential growth since many gamblers lose the rounds and therefore increase their wager by the factor γ , which leads to an increase in the average bet value. The superdiffusion here suggests that Martingale strategy increases gamblers’ risks of huge losses. Considering the wide adoption of Martingale among gamblers, this could be a reason for the superdiffusion as well as the crossover to normal diffusion we found in several datasets. Comparison of the MSD curves of different α suggests that a more aggressive risk attitude leads to a higher risk of huge losses (as well as higher potential winnings). Figure 8. 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