Industry question: How can "probooks" remain profitable with probettors?

[SportsSharingun]

Why do these books (pinnacle, bookmaker) allow winning/pro players to play at their books? Is it simply for reputation purposes?

I've been told that these books take in an astounding amount of action each day, in which case I would suppose having sharps hone the line might ultimately allow the line to be more profitable.

[Outsider626]

There is only 1% of probettors. 99% of bettors are amateurs and lose everything. This is how.

[Crusherrr]

There is only 1% of probettors. 99% of bettors are amateurs and lose everything. This is how.

This plus books are more likely to limit suspected pros then cut them off.

[BetBothSides]

square books make 8% hold off $300 million handle, sharp books make 1% hold off $3 billion handle. Both have different ways of making it work

[danshan11]

99% is way too optimistic its more like 99.79% and losers lose VIG 2-3%, winners win 1-2%

[lonnie55]

I wish there was a book that published those numbers. Whenever this issue comes up everybody has to speculate. I once read that IBCBET, an Asian sharp book, has an annual turnover of €45 bn and a return of sales of 0,67% but this was in 2011 (source: http://www.spiegel.de/spiegel/print/d-80362919.html ).

[danshan11]

isnt that about what i said lose vig 2-3% and win 1-2% that comes out to roughly 1%

[patswin]

Sharp books want sharp action so they can line up with them. They adjust their lines accordingly. It all depends on what kind of clientele you want. Some books don't want sharp action, others welcome it because they know how to use it to their advantage.

[LT Profits]

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I've been told that these books take in an astounding amount of action each day, in which case I would suppose having sharps hone the line might ultimately allow the line to be more profitable.

You asked the question, and yet you have your own answer right here. Patswin put it best in Post #8, but yes you are correct.

[Alfa1234]

Your line is 1.95 / 1.95 (-105 / - 105).

You take a limit 5k bet on 1 side. You drop that side to 1.909 (-110) and rise the other side to 1.98 (-102). You now take a 5k bet on the side of the 1.98 (-102). You made yourself 100$ worst case and 250$ best case. Do this thousands of times every day on every line and keep adjusting them.

That is, very simplified, how they make money and why they don't ban winners.

[PharaohUB]

I would suspect these books are hooked up to the exchanges too and occasionally lay off action on each other even sometimes. Like the guy above said if your goal is to get even action on both sides and guarantee profit who cares if one guy is right more than others you still get paid. And on top of that if you have his knowledge before others you can use to your benefit and move lines quicker.

[Yjacket22``]

These books also have no stiffs since all money is put up front first. Back in the 80's and early 90's I was a "local bookie" and biggest problem was people were slow to pay, or not pay up at all. But they had that hand out when they won, you can bet the farm on that. When I first discovered offshore books I thought gosh how I'd like to be in their shoes. I'm sure it would take mega bucks to set up shop though.