If you are a sports bettor, you may have heard the term ‘steamer’ or ‘steam’ in relation to betting odds. But what does it mean and how does it affect your betting strategy? In this article, we will explain the concept of a steamer, why it happens, and how sportsbooks deal with it.
What is a steamer?
A steamer is a selection that keeps attracting significant bets from the betting public or professional bettors. As a result, the odds on that selection drop rapidly, indicating a strong preference for that outcome. For example, if Team A is initially priced at 2.00 to win a game, but a lot of money comes in on Team A, the odds may drop to 1.80 or lower. This means that Team A is a steamer, as the betting market has moved in its favor.
Breaking news: Sometimes, a piece of information can change the perception of a game or event, such as an injury, a suspension, a weather condition, or a lineup change. This can cause bettors to rush to place their bets on the affected selection before the odds adjust.
Insider information: Sometimes, bettors may have access to insider information that is not widely known or available to the public, such as team tactics, motivation, or performance. This can give them an edge over the bookmakers and other bettors, and they may bet heavily on the selection that benefits from the information.
Market sentiment: Sometimes, bettors may follow the crowd or the experts and bet on the same selection that is popular or recommended by others. This can create a bandwagon effect, where more and more bettors join in and push the odds down.
Syndicate action: Sometimes, bettors may belong to a syndicate or a group of professional bettors who have a large bankroll and sophisticated betting strategies. They may target certain games or events and place large bets on them at multiple bookmakers simultaneously. This can create a sudden and coordinated movement in the odds.
How do sportsbooks deal with steam?
Sportsbooks are aware of the phenomenon of steam and they have different ways of dealing with it, such as:
Adjusting the odds: The most common way of dealing with steam is to adjust the odds accordingly. Sportsbooks use sophisticated software and algorithms to monitor the betting market and detect any significant changes in the betting volume or patterns. They then lower the odds on the steaming selection and raise the odds on the opposite selection to balance their books and reduce their risk.
Limiting the stakes: Another way of dealing with steam is to limit the stakes that bettors can place on certain games or events. Sportsbooks may impose lower betting limits on games or events that are prone to steam, such as obscure leagues, minor sports, or early markets. They may also limit the stakes of individual bettors who are suspected of having insider information or being part of a syndicate.
Closing the market: A rare way of dealing with steam is to close the market altogether. Sportsbooks may decide to stop taking bets on a game or event if they suspect that there is something fishy going on, such as match-fixing or corruption. They may also close the market if there is too much uncertainty or volatility in the outcome, such as a major injury or a weather delay.
Is steam good for sportsbooks?
Steam can be good or bad for sportsbooks depending on how they handle it. If sportsbooks are able to adjust their odds quickly and accurately, they can profit from steam by attracting more bets on both sides of the market and increasing their turnover. However, if sportsbooks are slow or inaccurate in adjusting their odds, they can lose money from steam by exposing themselves to arbitrage opportunities or value bets from sharp bettors.
Steam can be good or bad for bettors depending on how they use it. If bettors are able to spot steam early and place their bets before the odds drop too much, they can profit from steam by getting better value on their bets. However, if bettors are late or follow steam blindly, they can lose money from steam by getting worse value on their bets or falling into traps set by sportsbooks.