Betting Odds: What They Are & How They Work
Lina Almans
23 May 2023
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Different countries use different forms of odds, so it doesn’t hurt to know about them if you want to stay up-to-date. But what types of odds are there, what do they mean, and how can you calculate them yourself? Let’s break it down.
What are Betting Odds?
Betting odds are a numerical representation of the probability of a particular outcome in a sports event, which also includes the bookmaker’s margin. The odds indicate the potential payout for a successful wager.
How Do Betting Odds Work
In general, the lower the probability of an outcome (such as betting on an underdog), the higher the offered odds will be. However, these bets carry a higher risk.
It’s important to note that betting odds can change due to two main factors: a change in the probability of an outcome or a line movement. The latter refers to changes made by bookmakers to balance the action on both sides of a bet.
How to Understand Betting Odds
Let’s say we’re looking at the betting line for an upcoming match between Real Madrid and Chelsea.
Team | Odds | Probability |
Real Madrid | 1.90 | 52.63% |
Draw | 3.50 | 28.57% |
Chelsea | 4.33 | 23.09% |
For example, in the betting line, we see the following odds: Real Madrid to win – 1.9, draw – 3.5, Chelsea to win – 4.33. To determine the probability that the bookie sees in a particular outcome, you need to divide 100% by the odds.
Keep in mind that bookies include a margin in their odds to minimize their risks and ensure they make a profit. That’s why the final odds for a match can often be different from the ones shown in advance.
Types of Odds
There are several main types of odds:
Calculating Odds
- European Odds (Decimal)
European odds, also known as decimal odds, are commonly used in Europe. They show the total payout you’ll get for every dollar you wager, including your original stake and the profit.
Match | Real Madrid | Draw | Chelsea |
Odds (Decimal) | 1.9 | 3.5 | 4.33 |
For example, if you wager $100 on a 1.91 decimal odds, your potential payout would be $191 ($100 x 1.91), with $91 being the profit and $100 being the original stake.
- British Odds (Fractional)
British odds, also known as fractional odds, show the likelihood of an outcome as a fraction, like 10/3 or 10/11. They help you figure out how much extra you could win by betting a certain amount. Check it out:
Match | Real Madrid | Draw | Chelsea |
Odds (Fraction) | 10/11 | 5/2 | 10/3 |
Let’s say you see an odd of 10/3. That means if you bet $3, you could potentially win an extra $10 in profit if your bet is successful.
If you were to make a $100 wager, you could potentially win: (10/11 + 1) x 100 – 100 (the wager) = $90.
To turn fractional odds into decimal odds, you have to divide the numerator by the denominator and add 1. Using our example, 10/11 + 1 = 1.9.
- American Odds (Moneyline)
American odds can be a bit tricky because they include both positive and negative values. Positive odds indicate the potential profit we can make if we bet a certain amount.
Match | Real Madrid | Draw | Chelsea |
Odds (Moneyline) | -111 | +250 | +333 |
Let’s say you wager $100 on Real Madrid at -111 odds. This means you’d have to risk $111 to possibly make $100 in profit. Your total potential payout would be $211 ($111 wager + $100 profit).
To convert American odds to decimal odds, we can use the formulas:
- For positive odds: (odds / 100) + 1
- For negative odds: (-100 / odds) + 1
How can I interpret betting odds?
Simply put, the lower the number, the higher the likelihood of the team or player winning.
What factors influence the formation of betting odds?
Several factors affect the formation of odds, including team statistics, injuries, and match conditions, which bookmakers take into account when setting the odds.
Where can I compare betting odds from different bookies?
Try checking out oddschecker.com and oddspedia.com for odds comparisons from different bookies.