|Average payout and betting margin explained
An average payout of say 97% implies that you will get paid out £ 97, on average and over the longer run for everything £ 100 that you stake (or wager).
The betting margin of the bookmaker (or the bookmaker’s profit) is therefore £ 3, on average and over the longer run.
Does this imply that you will lose money over the longer run? Not necessarily. If you have a better knowledge of sports than the average bettor, you should have a competitive advantage and therefore be able to win.
Nevertheless, be aware that the bookmaker is in there to make a profit. Therefore, it is crucial to have a bookmaker with a higher average payout (say 96% or higher) than a bookmaker with a poor average payout (say 94% or lower).