The Italian striker joined the Reds from AC Milan for £16million last summer but has failed miserably during his first season at Anfield.
Balotelli, 24, has scored just four goals in 26 appearances for Liverpool since arriving on Merseyside which suggests to former Kop star Owen that the gamble has not quite paid off.
"It is a gamble and a lot of people said they didn't really think it was good business," Owen told BT Sports.
"But there were plenty of people saying at £16m there was a bit of value.
"And let's get it right, Brendan Rodgers knew it was a risk, he wasn't really sure about him, there just wasn't anyone else.
"He knew it was a risk and he is a very good player.
"I just think with Balotelli he doesn't fit. We were used to seeing Liverpool from last year they were the Red Arrows, weren't they?
"They were coming at you from all angles with energy and pace - everything.
"Balotelli's not that type of player. He's more of a Dimitar Berbatov type. He doesn't put a lot of effort into his game but he is a classy player."