What Are ‘Stakes’ in Sports Betting?
Stakes refer to the amount of money that bettors risk in a wager. The term is sometimes used in the context of “high-stakes” or “low-stakes” bets, referring to higher or lower-risk bets, respectively.
For example, if you were to wager $100 on a game, then the ‘stake’ for your bet would be $100.
Types of Stakes in Sports Betting
1. Fixed Stakes
This is the most common approach where you bet the same amount on each wager, ideal for beginners practicing bankroll discipline. For example, always staking $20 regardless of odds.
2. Variable Stakes
Used by more advanced bettors who adjust their stake based on confidence level, odds value, or perceived edge. A bettor might stake more on a strong pick and less on a risky underdog.
3. Unit-Based Stakes
Many bettors calculate their stake using a unit system, typically 1% to 5% of their total bankroll. For instance, a bettor with a $1,000 bankroll might use $10 (1 unit) as their base stake.
High Stakes vs. Low Stakes Betting
- High-stakes betting typically involves wagers of $1,000 or more, often made by seasoned pros or high-rollers. These bets carry more financial risk but also offer substantial payouts.
- Low-stakes betting is generally under $50 per bet and is common among casual or recreational bettors. It’s ideal for learning without risking much.
Why Stakes Matter
Understanding and managing your stake is crucial for long-term bankroll management. Regardless of odds or picks, your stake controls your exposure to risk. Losing five $10 bets is very different from losing five $500 bets.
Stake Types in Sports Betting Comparison Table
| Stake Type | Description | Best For | Example |
|---|---|---|---|
| Fixed Stake | Betting the same amount on every wager | Beginners, consistent bettors | $25 on every bet, regardless of odds |
| Variable Stake | Adjusting stake size based on confidence or perceived value | Experienced bettors | $50 on strong picks, $10 on longshots |
| Unit-Based | Using a consistent percentage of your bankroll as a unit (e.g., 1–5%) | Bankroll managers | 1 unit = $10, bet 2 units on high-confidence |
| High Stakes | Large individual wagers, typically $1,000+ per bet | Pros, high-rollers | $2,500 bet on Super Bowl |
| Low Stakes | Small bets, often under $50, meant for fun or learning | Recreational bettors | $10 bet on a daily MLB game |