The importance of bankroll management and responsible gambling

Many successful bettors agree that the most important thing to consider while gambling is bankroll management. In simple words, these players know when and how to marshal their funds in different stages of the game. On the contrary, most consistent losers do not appreciate the significance of bankroll management. These players are too fixated on the right betting strategy, the right games, etc. Bankroll management is the foundation to gambling responsibly.

This article takes you through the finer points of managing your bankroll or budget. After reading it, you should be able to gamble more maturely and land even bigger wins.

Identify the 'right'casino or sportsbook

Your bankroll management starts right from choosing the best gambling site. This online casino can offer one or multiple sign-up bonuses, etc. You can also evaluate on the basis of the affordability of the initial deposit amount. For example, if you can't deposit more than $10, then there's no point in playing on $100 casinos.

What is your bankroll

Identify how much you are willing to invest or spend on your game. We have used two words here, 'invest' and 'spend'. Long-term gamblers invest money and are patient with the outcomes. On the other hand, there are players who want to make a profit in the short-term. What kind of player are you? The answer to this question depends upon your risk-taking capability. However, let's assume that our bankroll is $500.

Identifying a unit in relation to bankroll

In this case, the unit will be a fraction of your bankroll that you would bet on a game. Many gamblers assign 1%-2% of their bankroll for betting activities. While conservative players stick to 1%, the more aggressive ones assign 2% of their budgeted money for betting. In our case, the unit ranges from $5 to $10. This means you can bet $5 on 100 different occasions. Alternatively, this also means you can lay 100 bets of $5 each.

Identify games with the right variance

This simply means that you should look out for games having the right variance. A high variance game can make you rich or poor in a matter of seconds. Low variance games are those that give out money evenly over a period. These games can also deprive you of your funds gradually.

Therefore, if you have set aside $500 as your bankroll (comprising 100 bets of $5 each), do you think a low variance game suits you? Conversely, do you have the risk appetite to absorb a few initial dramatic losses in your game? Let's look at some examples.

Example 1

You have placed 200 bets, and so far you have lost only 2 units. The bankroll is now down to $490. Here, it seems the variance isn't high and your budget is more or less constant. You can consider maintaining your unit size for the rest of the game.

Example 2

You lose 20 units after placing 200 bets, and now your net bankroll amount is $400. The percentage loss is 20%. Can you afford this loss? Perhaps it is time to lower the unit size by 50%. It is your decision.

Example 3

Here, you gain 10%, and your new bankroll is $550. Now there are two options before you. Keep the profit, and start once again with your original bankroll. The other option is treat $550 as the new bankroll and make 10% of this amount ($5.50) as your betting unit.

Now that we've understood the art and science of bankroll management, let's move on gambling responsibly.

Why is Responsible Gambling important?

Many novice gamblers place small bets in the early stages of their gambling career. But it has been seen that they start wagering bigger amounts after scoring a few big wins. This can turn out to be a problem if these gamblers lose in their next few games but continue wagering aggressively. This section of the article will help you gamble safely and responsibly.

Do your groundwork

If you haven't understood your game and its risks, it is time to step back and ponder on a few things.

• As a player, you appreciate all the risks involved in your game.
• While you take losses in your stride, you also learn from them.
• You also understand how bankroll management works.

Players should research whatever they read, see or hear regarding casino games, bets, strategies, etc. Don't apply untested concepts while gambling; this may backfire upon you.

Record every bet

It is surprising that many people do not keep records of their betting activities. Tracking your betting activities would not only cut your costs, it would also make you a responsible player.

Bet only on games that you can afford to lose

Players should stake money only on those games they can afford to lose. For example, if you are a novice, you should avoid games that require you to stake on the maximum credits. Many progressive jackpots are expensive propositions for newbies. Similarly, avid placing Outside Bets on roulette wheels until you are comfortable with your bets.

Understand your game

Read all the game information before placing your first real money bet. Most online casinos have articles on how to play slots, card and table games, etc. Never rush into games without understanding what is in store for you.

How often should I bet

Please understand that gambling is about chance. There is no magic formula on the betting frequency. While it helps to bet more, increased betting frequency can also drain away your time and money.

What should be my betting amount

Again, there is no ready-made answer to this question. It all depends upon your budget and risk-taking ability.

Drinking and gambling

Never drink while gambling, else you will make bad decisions. Many studies have concluded that drinking slows down your decision-making. Save your money and health.

Know when to abandon your game

Successful gamblers know when to leave their game. They know exactly how much time and energy they can spend on gambling. Leave your game immediately as soon as you have hit a winning streak. Please remember, every casino is a commercial body, and it will always win in the long run.