Tipsters create value for punters by enabling the latter to allocate their betting capital on racehorses that have been priced incorrectly by bookmakers and the marketplace. To do this, horse racing tipsters must possess inside information on runners, trainers, weather and track conditions, injuries and any other variable that can affect the outcome of a meeting. Tipsters then analyze this data.
Because good tipsters are industry insiders, such information is generally not readily available to the public. Tipsters usually specialize in a certain niche (such as certain types of horse racing). They look for trends and follow emerging patterns.
Tipsters then compare their data with how the marketplace is placing odds on upcoming meetings and assess whether or not certain racehorses are being priced correctly. Just like a stock market investor, the advantage of the punter is that he or she can choose which races to place a wager on and how much capital to “invest”. They have the option on their betting capital. Similar to the stock market, options have “value”.
Bookmakers don’t have such options. The disadvantage of the bookmaker is that he is forced to price every race and racehorse competing in an event. There are countless variables that affect the odds in all these meetings, and this creates multiple chances of creating a pricing error.
Punters can place wagers on multiple racehorses that are perceived to have such pricing errors, and thus yield greater than expected returns. Tipsters find a profit by getting valuable horse racing information that the public and bookmakers either don’t have or did not analyze correctly.
Through years of experience, tipsters leverage their ability to spot trends and patterns, and they are constantly trying to beat the bookmakers’ odds by winning a greater number of times than the odds for each bet would suggest.
Good tipsters use quantitative analysis, extensive research, and inside information and compare this estimation with the bookmakers’ odds. If there is a gap between the estimate odds and the bookmakers’ odds, the tipster has identified value for gamblers.