What Is the Poisson Distribution?
The Poisson distribution is a discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur at a constant mean rate and independently of one another. Named after French mathematician Simeon Denis Poisson, who published it in 1837, the distribution has become one of the most important tools in statistical analysis.
In the context of sports betting, the Poisson distribution helps predict scoring outcomes by modeling goals, points, or other discrete events. It's particularly useful for low-scoring sports like soccer, hockey, and lacrosse, where the average number of goals per game is relatively small (typically between 1-4).
The Poisson Formula Explained
The probability mass function of the Poisson distribution is:
P(k) = (λk × e-λ) / k!
Where:
- P(k) = Probability of exactly k events occurring
- λ (lambda) = The expected average number of events (e.g., expected goals)
- e = Euler's number (approximately 2.71828)
- k! = Factorial of k (e.g., 3! = 3 x 2 x 1 = 6)
For example, if a team has an expected goals (xG) of 1.5, we can calculate the probability of them scoring exactly 2 goals: P(2) = (1.5² × e-1.5) / 2! = (2.25 × 0.223) / 2 = 0.251 or about 25.1%.
How Bookmakers Use Poisson
Professional sportsbooks and betting exchanges use Poisson-based models as one component of their pricing algorithms. While their models are far more sophisticated—incorporating team form, injuries, head-to-head records, and market movements—the Poisson distribution provides a mathematical foundation for pricing correct score, over/under, and match result markets.
Understanding this helps bettors recognize when a market might be mispriced. If your Poisson model consistently differs from the market's implied probabilities, it could indicate value—though it's essential to remember that markets aggregate information from thousands of bettors and sophisticated models. Learn more about how bookmakers create lines in our odds compilers and line setting guide.
Limitations of the Poisson Model
While useful, the Poisson distribution has several limitations for sports betting:
- Independence assumption: Poisson assumes events are independent, but goals often cluster due to momentum shifts, red cards, or tactical changes
- Constant rate assumption: It assumes the scoring rate is constant throughout the match, ignoring the higher goal rates in the last 15 minutes of soccer matches
- No correlation: The model treats home and away goals as independent, but in reality, if one team scores, it affects the other team's tactics
- Doesn't capture context: Weather, referee tendencies, travel fatigue, and other factors aren't modeled
For more advanced modeling, researchers often use bivariate Poisson or negative binomial distributions that account for correlation between teams' scores and overdispersion in the data.
Using Expected Goals (xG) with Poisson
Expected goals (xG) has revolutionized soccer analytics by quantifying the quality of scoring chances. Instead of using historical goal averages, you can input team xG values for more accurate predictions. Sites like Understat and FBref provide free xG data for major leagues.
When using xG with Poisson:
- Season averages: Use at least 10+ matches of xG data for stable estimates
- Home/away adjustments: Teams typically perform differently at home vs. away
- Opposition strength: Adjust for the quality of opponents faced
- Recent form: Weight recent matches more heavily if you believe form is important
Practical Applications
Beyond soccer, Poisson can be applied to other low-scoring sports:
- Hockey (NHL): Average goals per team is around 2.8-3.2 per game
- Baseball: Run scoring can be modeled, though pitcher matchups add complexity
- Lacrosse: Similar goal-scoring patterns to hockey
For high-scoring sports like basketball or American football, the normal distribution is typically a better approximation than Poisson when expected values exceed 10-15 points per period.
Related Tools and Articles
Explore more mathematical tools for understanding sports betting:
- Expected Value Calculator – Determine if a bet has positive EV
- Vig Calculator – Find the true odds without bookmaker margin
- Probability Calculator – Convert between odds formats and calculate probabilities
- Closing Line Value Explained – The key metric for measuring betting skill
Disclaimer: This calculator is for educational purposes only and does not constitute betting advice. Sports betting involves risk and the Poisson model is a simplification of complex real-world events. Never gamble with money you cannot afford to lose. If gambling is affecting your life negatively, please seek help from BeGambleAware or contact the National Council on Problem Gambling.