Definition of ROI

What does the term "ROI" mean in the world of sports betting? What is the definition of the term "ROI"?

To start, "ROI" is an acronym for "return on investment".

In the world of sports betting, "ROI" or "return on investment" refers to the amount of money that you can expect to generate in profit from a wager.

For instance, let's say that Man City is playing Manchester United in English Premier League action. The odds look like this:

Man City, 1.50
Draw, 3.50
Man Utd, 6.50

Now, what would be your ROI if you decided to bet on Man City and they won?

Let's say that you bet £100 on the outcome. Your return would look like this:

(£100 Bet * 1.50) - £100 Wager = £50 in Profit

£50 in profit from a £100 investment would mean that this successful wager would have a return on investment of 50%.

Now, it goes without saying that the odds of a draw or a Man Utd victory taking place are much higher and could potentially give you a much bigger return on your investment, but they are also much less likely to take place, as Man City is obviously the clear favourite to win.