SPORTS BETTING ODDS EXPLAINED
SPORTS BETTING ODDS EXPLAINED
Online sports betting offers gamblers access to thousands of internet sportsbooks worldwide. Our guide will help you learn how to calculate sports betting odds in different formats and compare them against each other, and improve your gambling with our sports odds calculator.
How Do Odds Work?
It's important to know how odds work and how to read sports betting lines, as online sportsbooks will display odds differently, based on the sport and location you're betting on.
Betting odds are determined by a number of calculations factored in by sportsbook providers. Experts in sports betting know the answer to the question, “how do odds work?” and can use that information to decide which outcome the bookie considers more likely. Learning how to read odds and what to use that information for will help you make successful wagers. Let’s take a closer look at some of these basic principles of odds.
How to Read Betting Odds
Betting odds are a measure of how likely or unlikely a sportsbook finds an event to be. The more likely an outcome is, the less you can make wagering on that outcome. Conversely, betting on the less likely outcome correctly pays much better. Learning how to read odds is the foundation of developing a successful sports betting strategy. So how do odds work anyway? There are three different ways in which sports betting odds can be displayed. Despite all being presented differently, the above examples all translate to the same chance of winning (33.33%) – all will yield $2 of profit for every $1 wagered successfully.
- American Odds
- Fractional / UK Odds
- Decimal / European Odds
Understanding American Odds
As the name suggests, American odds are most popular in the United States. Working differently for favorites and underdogs, they're also known as 'moneyline' odds. American odds for betting on the favorite work by showing how much money you would have to bet in order to win $100. Things are different when betting on an underdog. The positive number shows how much you can win if you risk $100. You may notice that this is similar to 'odds-on' bets in UK markets. Let's illustrate that concept with some football odd.
Understanding Fractional / UK Odds
Fractional odds, also referred to as British odds, UK odds or Traditional odds, are often used in horse racing. These odds quote the net total which will be paid out to the bettor should they win, factoring in their stake. On the other hand, a gambler backing Manchester United, who have odds of 1/5, will see a payout of just $1 for every $5 bet. That means a total payout of $6 for someone betting $5.
Understanding Decimal / European Odds
Decimal odds are most popular in Europe, Australia and Canada and many think they're the easiest format to understand. Almost all online sportsbooks will offer the option of displaying odds in the decimal format, which is sometimes known as European odds in the UK. With decimal odds, the figure quoted is the exact amount that will be paid out if the bet is a winner. Decimal odds are essentially equivalent to the decimal value of the fractional odds, plus one.
FINAL THOUGHTS
Having these fundamental principles of betting odds explained is the first step to making successful wagers. Following the tips in this helpful guide can take you from wondering, “how do odds work?” to understanding how to bet successfully. Remember how to read odds and the formulas for determining the implied probability from each. Once you have that implied probability, you can place your wagers accordingly.
There’s always luck and chance involved in sports betting, but understanding how to read odds helps you make an informed bet. If you believe an outcome is more likely than the implied probability, you have an optimal chance of winning a return on your wager. Now that we have the different aspects of betting odds explained, the only thing left to do is to start placing your wagers. Good luck and happy playing.
