Why Bankroll Management Matters
Even winning bettors go through losing streaks. Without proper bankroll management, a bad week can wipe out months of profit or drain your entire bankroll. Discipline with money is what separates profitable bettors from broke ones.
What is a Bankroll?
Your bankroll is the total amount of money you have set aside specifically for sports betting. This should be money you can afford to lose without affecting your daily life.
Critical Rule
Never bet with money you cannot afford to lose. Your bankroll should be completely separate from rent, bills, savings, and emergency funds. Sports betting is entertainment with an element of risk.
Setting Up Your Bankroll
Follow these steps to establish a proper bankroll:
Determine an Amount You Can Lose
Start with money that would not impact your life if it vanished. For most recreational bettors, this is $200-$1,000.
Keep It Separate
Your bankroll should be in your sportsbook account(s), not mixed with other funds. This makes tracking easier.
Calculate Your Unit Size
A unit is typically 1-3% of your bankroll. If you have $1,000, one unit is $10-$30. Read our unit guide for details.
Choosing Your Unit Size
Your unit size determines how much you bet relative to your bankroll. Most professionals use 1-3% per bet.
Unit Size Recommendations
Best for beginners. Can withstand 20+ unit losing streak. Slow growth but very safe.
The sweet spot. Good balance of growth potential and risk management for most bettors.
For experienced bettors with proven edges. Higher variance but faster bankroll growth.
Significant risk of ruin. Only for those with very large edges. Not recommended for most.
Flat Betting vs. Variable Betting
There are two main approaches to sizing individual bets:
Bet the same amount (1 unit) on every wager regardless of confidence level.
- ✓ Simple to execute
- ✓ Removes emotional decision-making
- ✓ Easier to track results
- ✓ Best for beginners
Adjust bet size based on perceived edge (1-3 units per play).
- ✓ Maximizes value on best plays
- ✗ Requires accurate confidence assessment
- ✗ Easy to overbet "lock" plays
- ✗ More complex tracking
Most recreational bettors overestimate their confidence. If you use variable betting, your biggest bets often become your biggest losses. Start with flat betting until you have a long track record proving your confidence calibration.
Understanding Risk of Ruin
Risk of ruin is the probability of losing your entire bankroll before it can grow. The larger your unit size and the lower your win rate, the higher your risk of ruin.
Risk of Ruin by Unit Size
| Unit Size | Units to Bust | Risk Level |
|---|---|---|
| 1% | 100 units | Very Low |
| 2% | 50 units | Low |
| 3% | 33 units | Medium |
| 5% | 20 units | High |
| 10% | 10 units | Very High |
Even sharp bettors can experience 20+ unit losing streaks. With 5% units, that is 100% of your bankroll gone.
Growing Your Bankroll
As your bankroll grows (or shrinks), you should adjust your unit size accordingly:
Recalculating Units
Recalculate your unit size at regular intervals based on your current bankroll. Do not do it after every bet.
If your bankroll increases or decreases by 25%+, it is time to recalculate regardless of schedule.
Use our bankroll calculator to determine your proper unit size.
Example: Growing Bankroll
This compounding effect is how professional bettors grow their bankrolls significantly over time.
Bankroll Management Mistakes to Avoid
After a losing day, the urge to bet bigger to "get even" is strong. This is how bankrolls die. Stick to your unit size.
If losing a bet would hurt your life, you are betting too much. Scared money makes bad decisions.
There are no locks in sports betting. Every favorite can lose. Never bet more than 3-5% on any single game.
Let your bankroll compound. Withdrawing all profits prevents growth. Only withdraw excess above your target bankroll.
If you bust your bankroll, do not immediately reload. Analyze what went wrong first. Multiple reloads is a sign of a problem.
Knowing When to Walk Away
Part of bankroll management is knowing when to stop:
Set Daily/Weekly Limits
Decide in advance: if I lose X units today, I stop. This prevents emotional betting after tough losses.
Take Breaks After Winning Streaks
Overconfidence after wins can lead to sloppy betting. Lock in profits and reset mentally.
Recognize Problem Gambling Signs
If betting is causing stress, relationship issues, or financial problems, seek help. Resources are available.
Key Takeaways
- ✓Only bet money you can afford to lose completely
- ✓Use 1-2% of your bankroll per bet (1-2 units)
- ✓Start with flat betting until you have a proven track record
- ✓Recalculate your unit size as your bankroll changes
- ✓Never chase losses or bet more than 5% on any single game
- ✓Use our bankroll calculator to determine your ideal unit size