By DAVID SCOTT Posted: 2005/11/17

Bookmakers have come to rely on a combination of accurate pointspreads and an understanding of how and when to move lines as their primary defense against players. One significant tool at the bookmakers' disposal is limits. Generally, there are three factors they consider when establishing limits.

Every game of chance offers the house a certain inherent statistical advantage. However, none works off so small a profit margin - theoretically between one and four percent - as sports betting.

With so little room for error, bookmakers have come to rely on a combination of accurate pointspreads and an understanding of how and when to move lines as their primary defense against players. Another significant tool at the bookmakers' disposal is limits.

Generally, there are three factors that bookmakers consider when establishing limits; the historical accuracy of the lines, their profit trends, and their customer mix.

While limits may vary greatly from one wagering outlet to another, nearly all bet takers establish limits for their biggest and best sport and work their way down from there. For almost any bookmaker dealing with a clientele that is primarily American, the NFL rules supreme.

But what should a book's NFL limits be? As a general rule, if a book is unable to lose "comfortably" five times its stated limit, then that limit is too high.

For example, if a sports book or Internet betting site has a limit of $10,000 and, as invariably happens from time to time, takes a limit hit on a single side in a single game five times before moving the spread on that game, then that book or site should be able to survive a $50,000 loss without half the staff being fired. If a book can't sustain such a hit, its limit is too high.

Books and sites establish their limits based on their play. There's no reason for a wagering outlet to have a $10,000 limit if its top wagers consistently fall in the range of $500 to $1,000. In that scenario, the only time a betting site will see a $10,000 wager is when it doesn't need it, when there's something wrong with the game and the player has some informational edge over the bookmaker.

It's worth remembering that limits are in place as a defense against professional players. Books in Nevada and other resort locations often allow their frequent casino customers to wager amounts that are larger than the house's stated limits. What's more, there also are a handful of transcendent sporting events, such as the Super Bowl, that benefit an entire property and may have no limit at all.

If a book starts with a $10,000 limit on NFL sides, then a $1,000 limit on NFL totals would be in line. After all, totals are esoteric wagers and limit-bets on them almost always come from professional gamblers. By keeping total wagers comparatively low, books and Internet sites can maintain leverage and manipulate play to their best advantage.

Once having established side and total limits in the NFL, books can assign numbers to other sports. A book or site manager who accepts a $10,000 wager on the NFL should feel comfortable with half that amount, or $5,000, on college football.

A sports book that takes a 10-dime side bet on the NFL might accept a wager of $3,000 on both Major League Baseball and the NBA. Total limits of $500 for baseball would be appropriate. A total limit of $300 on the NBA - where sophisticated gamblers have proven particularly adept - would be in line with a $3,000 side limit.

College basketball, which has become more profitable for bet takers than the NBA version of the hardwood game, has edged closer, if not drawn even, with professional hoop limits. Where once a book that took a $3,000 pop on the NBA might only go as high as $1,000 on college basketball, the limits now have achieved equality at many outlets.

Given our example of $10,000 for an NFL ceiling, limits on the NHL might fit comfortably into the $2,000 range with total limits of about $300. Limits on hockey need not be very high because casual players rarely wager that heavily on the sport.

A major boxing attraction - especially one where the line has been solidified so substantial two-way action will result - can be booked to NFL limits. Conversely, the Arena Football League and Canadian Football League, sports where oddsmakers and bookmakers may not have as much information as they would prefer, are booked to much lower limits. Perhaps $1,000 is the right number on those sports.

Setting reasonable limits is an important function of the successful bookmaker. For while the dreams of gamblers may be limitless, the money a bookmaker is willing to lose isn't.
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