A tipster is a third party individual or organization that provides information on betting odds and likely winners in sporting events, including horse racing. With the advent of the internet and telecommunication, waging advice (or tips) is sold as a service.
Horse racing tipsters create value for punters by becoming specialized experts in their chosen sport. They influence the allocation of betting capital towards racehorses that are perceived to have a greater likelihood of winning.
Through years of experience, tipsters leverage their knowledge and offer punters betting advice. Such tips are similar to what a stock broker or investment firm may advice to an investor in the financial marketplace.
Using this economic analogy, the racehorse would be the “investment opportunity” like a stock or bond and the bettor would be an investor. Obviously, it’s in the punter’s interest to allocate his or her capital in “assets” that yield a return on investment.
Tipsters can convey value by being aware of variables that affect the results of meetings. Trainers, injuries, weather conditions, track conditions, horse medication, past performance, statistics, speed ratings, and other factors influence the outcome of contests.
It is the tipster’s job to obtain inside information not readily available to the general public. Bettors following advice will try to beat the bookmakers’ odds by winning a greater number of times than the odds for each bet would suggest.
Bookmakers often provide incorrect odds in the horse racing “marketplace” which create opportunities for punters to allocate capital on inappropriately priced racehorses and receive greater returns.
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.