Value bets are predictions that carry more odds than they should due to underestimation of probability or errors by the betting companies. Odds are determined by the probability of an outcome. Generally, the higher the chances of an outcome coming true, the less the odds. In determining the odds, companies use various parameters such as the recent performances of the involved teams, venue, weather, form of players etc. As expected in any human activity, the determination odds can be marred by errors. This leads to a situation where odds for a certain outcome are disproportionately high than they should be.
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