Bankroll
generalThe total amount of money a bettor has set aside specifically for gambling.
Key Takeaways
- 1Your bankroll is money set aside specifically for betting
- 2Never bet more than 1-5% of your bankroll on a single wager
- 3The Kelly Criterion helps determine optimal bet sizing
- 4Good bankroll management is the difference between survival and ruin
What is a Bankroll?
Bankroll refers to the total amount of money a bettor has designated specifically for gambling purposes. It should be money you can afford to lose — separate from your living expenses, savings, and other financial obligations.
Bankroll Management
Professional bettors typically risk only 1-5% of their bankroll on any single bet. This approach, known as bankroll management, helps survive inevitable losing streaks and protects against ruin.
The Kelly Criterion
The Kelly Criterion is a mathematical formula that determines the optimal bet size based on your edge and the odds offered:
Kelly % = (bp - q) / b
Where:
- b = decimal odds - 1
- p = probability of winning
- q = probability of losing (1 - p)
Most professionals use "fractional Kelly" (25-50% of the full Kelly recommendation) to reduce variance.
Why It Matters
Without proper bankroll management, even a bettor with a long-term edge can go broke due to variance. Use our Bankroll Tracker [blocked] to monitor your betting performance.