Published: 15:44 30/08/2014
Paddy Power remains on top after clinching back-to-back Enhanced Odds Bookmaker of the month accolades following industry analysis by Freebets.com
The punter friendly firm which was also top in our inaugural enhanced odds report conducted in July, continued to welcome new customers with irresistible price boosts throughout August in place of the regular sign-up offer and once again beat Titanbet to the punch, while Winner made its first appearance in our top three.
The return of the domestic football season in August saw many of the enhanced odds revolve around the big kick-off. There were still a number of offers relating to other sports such as horse racing, golf and tennis, but it was the beautiful game that took centre stage.
About Enhanced Odds Offers
Enhanced Odds offers, sometimes also known as Price Boosts, are becoming an increasingly popular means of online bookmakers acquiring new customers. Many firms now use such promotions to either accompany or replace the more traditional free bet welcome offers altogether.
Here at Freebets.com, we decided to investigate which online betting operators provided the best proposition to any customers making use of any such promotions. In order to do so we devised a formula to factor in the maximum allowed stake, enhanced odds offered and probability of the punter placing a winning bet. It is on this basis that we decide which offer is best and in turn, which offer costs the bookmaker the most money.
How Enhanced Odds Offers Work
Having priced up a particular sporting event accordingly, the bookmaker will then offer enhanced odds on a selection or a number of selections from that event. The enhancement means that the punter taking up the offer stands to win more than they would by placing the bet at normal odds, should they be successful. An example of an enhanced odds offer is shown below.
At normal odds Arsenal are priced at 2/1 to beat Man City, meaning a £10 stake would return £30 if they win. The bookmaker may offer enhanced odds 4/1 Arsenal to beat Man City, which would return £50 from a £10 stake, giving a punter the potential to double their profit.
In most cases the bookmaker will put a cap on the amount a customer can stake at the enhanced odds (typically £10) any stakes above that cap have the remainder settled at the normal price. Bookmakers also tend to settle the bet at the normal price immediately before later topping up the customer’s account to reflect the enhancement, although this can vary depending on the company in question. Some firms also pay the enhancement as a free bet rather than as cash which can be withdrawn with no rollover requirements.
How We Calculate Value Of The Enhanced Offer
The value of the enhanced offer depends on the level of odds enhancement, the maximum stake and the probability of the offer being claimed. To illustrate if we use the same example as above £10 maximum stake enhanced odds offer was offering 4/1 on Arsenal to beat Man City, and the normal odds at the time of the offer for this bet were 2/1 (equivalent to 33% probability), the expected cost to the bookmaker of someone taking up this offer would be the enhanced odds (4/1 - 2/1 = 2/1 enhancement) x £10 x 33% probability = £6.66. This is the measure we have used to calculate which offers will cost the bookmakers the most, and are really are providing the best value to the punters!
The Top 4 Findings From Freebets.com August 2014 Enhanced Odds Offers Report
1. Paddy Power ranked August 2014 Enhanced Odds Bookmaker of the Month ahead of Titanbet in second place and Winner in third
2. Betfair Sportsbook’s ‘12/1 Arsenal To Win The Community Shield’ offer is rated Enhanced Odds Offer Of The Month for August 2014.
3. Paddy Power offered the largest odds enhancement in August with their ‘30/1 Liverpool To Win Premier League’ offer.
4. Football was responsible for the majority of enhanced odds offers in August by some distance with 87% being focused on the sport ahead of horse racing with just 7%.
August 2014 Enhanced Odds Bookmaker Of The Month
Paddy Power’s penchant for presenting would-be customers with an attractive proposition saw the Irish firm crowned Enhanced Odds Bookmaker for the second consecutive month in August. The bookie’s ‘30/1 Liverpool To Win Premier League’ offer was rated as the biggest enhancement for August 2014, while also being the fourth best offer of the month when factoring in the likelihood of a first time punter placing a winning bet.
Last month Titanbet and Betfair Sportsbook were snapping at Paddy’s heels for the award, but the former was some way behind the tongue-in-cheek bookmaker on this occasion. Once again, Paddy Power’s preference for paying enhanced odds as withdrawable cash as opposed to topping up price boosts with free bet funds helped to retain top spot. The graph below shows enhanced odds offers which were paid in cash only and we can see that Paddy’s rivals have some way to go to get on terms.
August 2014 Enhanced Odds Bookmaker Of The Month - Free Bet Payback Inclusive
In strikingly similar fashion to July’s report, when enhanced odds offers paid in free bets are included, Betfair move firmly to the front of the queue. In this instance, Betfair Sportsbook have more than double the amount of value on offer than Paddy Power and it’s interesting to see Titanbet moving up from third to second when using this algorithm.
As we suggested in last month’s report, Betfair who also welcome new customers with a bet £10 get £30 in free bets offer appear to be making a conscious effort to increase their customer base using enhanced odds offers. Regular punters may well be happy to utilise one such offer, whereas the one time bettor could be put off by the need to place further bets before being able to reap the benefit of the enhanced odds. This could be part of Betfair’s thinking as they will naturally be hoping for repeat purchases on the back of such generous offers.
Enhanced Odds Offer Of The Month
Betfair really upped the ante in August, particularly in pre-season with offers on the Community Shield and International Champions Cup occupying the top three positions for Enhanced Odds Offer of the Month. They dominated this category with nine out of the top ten offers and only Paddy Power managed to prevent a clean-sweep by nicking fourth position.
Betfair’s ‘12/1 Arsenal To Win The Community Shield’ offer was deemed to be one of the best enhancements in August and when cross referenced with the likelihood of coming off at actual odds of 6/5, was awarded Enhanced Odds Offer Of The Month for August 2014. Even if a prospective customer fancied going against Arsenal in that game they could have used Betfair’s ‘8/1 Man City To Win The Community Shield’ offer, which was the second best price boost of the month.
Biggest Odds Enhancement Of The Month
As mentioned earlier in the article, Paddy Power was responsible for the biggest odds enhancement in August 2014 with ‘30/1 Liverpool To Win Premier League’ enhanced from 11/2, coming out way ahead of any other offers. Two of the firms other Premier League Outright enhancements featured in the top three for the month with ‘20/1 Arsenal’ enhanced from 8/1, and ‘16/1 Man Utd’ enhanced from 9/2, offering punters exceptional value.
The only horse racing offer to feature in the top ten also marked Winner’s first appearance in the upper reaches of this category. ‘20/1 Velox To Win The Betfred Mile’ was quite a hike from the standard odds of 10/1 and will have garnered plenty of interest from shrewd punters during Glorious Goodwood.
Elsewhere new Betfair customers stood to earn up to an extra £108 when backing Arsenal to win the Community Shield, while first time Titanbet players were given the potential to pick up an additional £90 if Wolfsburg could upset the mighty Bayern Munich in the opening match of the new Bundesliga season.
Football was once again the dominant sport related to enhanced odds offers, with an increase from 71% to 81% of price boosts offered by bookmakers targeted at football bettors in August compared with July. As was the case with the World Cup, the beginning of a new football season tends to generate a huge interest in betting with many punters keen to have their say in the outright markets. Bookmakers were therefore all too happy to offer seemingly crazy prices in the build up to the big kick off in an attempt to gain as many new customers as possible ahead of the 2014/15 campaign.
While football looks set to retain the most coverage in the coming months, it would seem unlikely that such a bias will be seen in our next report now that the new season is underway. Golf was the least covered of all sports in August with just 1% of offers related to the sport, but with the Ryder Cup on the horizon, that percentage could be about to increase.
About The Analysis
Freebets.com conducts in-depth analysis of Enhanced Odds offers promoted on the websites of leading online bookmakers every month. The list of monitored bookmakers reads; 10Bet, 188BET, 888sport, bet365, Betfair Sportsbook, Betfred, BetVictor, Betway, Boylesports, Coral, Ladbrokes, Paddy Power, Sky Bet, Sportingbet, Stan James, Titan Bet, Unibet, William Hill and Winner. The analysis focused specifically on Enhanced Odds offers and other promotions such as Money Back specials, bonuses, concessions and guarantees are not included.
In order to determine its Bookmaker of the Month for Enhanced Odds Offers, www.freebets.com uses an algorithm which takes into account the maximum permitted stake, chance of winning the bet, extra potential winnings from the enhancement and whether or not it is paid in free bets for all enhanced odds offers available that month.
The www.freebets.com team draws on over 50 years’ experience in the betting industry to attribute weightings for the various factors in the formula in order to provide comparative values to the complex array of promotions.
DISCLAIMER – whilst every effort is taken to prepare detailed and accurate information, any third party relying on this information does so entirely at their own risk.