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Fixed-odds gambling is a form of gambling against odds offered by a bookmaker, an individual, or on a bet exchange. It is customary with fixed-odds gambling to know the expected odds at the time of the placement of the wager (the "live price"), however this category also accommodates wagers whose price is determined only after the race or game has taken place (the "starting price"). It is ideal for a bookmaker to price up a book such that the net outcome will always be in his favour, i.e. the sum of all possible outcomes will be in excess of 100%. The amount of the sums wagered in excess of 100% represent profit to the bookmaker in the event of a balanced book. This excess is known commonly as an overround . In the case of an imbalanced book, the bookmaker will have to pay out more winnings than what is staked, or he will earn more than mathematically expected. This may happen since there is no way for a bookmaker to know the true probabilities for the outcome of competitions left to human effort, and the fixed odds therefore being compiled on the basis of his personal view and knowledge.With the advent of internet and bet exchange betting, the possibility of fixed-odds arbitrage actions and Dutch books against bookmakers and exchanges has opened up significantly.
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