Spread betting is a specific type of gambling game that involves correctly predicting an interval rather than a binary outcome. It is especially common in sports betting and it offers alternatives to simply bet on whether teams win or lose.
With normal win-or-lose bet, a punter simply wager money on whether an event will take place or not. It is called binary play because there are only two possible outcomes. This type of betting is usually about winning and losing, but not always.
With spread betting in sports, sportsbooks assess a given match and allocate a spread of points between the two teams or competitors on which players bet.
In a game between two football teams, for example, the tension can be seven and a half points between the favorite and the underdog.
A punter wagers money on whether he thinks the final outcome of the match will be within this scattered point or not. Sportsbooks usually set up spreads at the halfway point to prevent draws.
An underdog can lose the game but still score enough points to get within the allotted range, something known as covering the spread. This way, a gambler can win money on a losing team if it manages to cover the spread.
Similarly, a team that wins a game may prove to be a lost bet for some people if they do not win by enough points to cover the spread.
The point of giving a spread is to make it more tasty for bettor to bet on underdogs. By not having to bet on them winning, there is more incentive to put money on them, which benefits sportsbooks who make their money on commissions and not the results.
Alongside sportsbook, spread betting has proven to be very popular all over the world since it appeared in the gaming industry.
