We briefly addressed odds before, but now it’s time to go over how to grasp them in further depth. This will assist you in deciding how to set up your bets.
Simply expressed, betting odds indicate the likelihood of a sporting outcome. They will, however, tell you how much money you could win.
If the outcome is likely, it implies that the probabilities are low. The lower the odds, the higher your chances of winning. The flip side of this is that if the chances are low, any winning bets will result in lower earnings.
However, higher odds imply that the outcome is less likely and that winning is more difficult, but you will profit more if you do win.
The ratio between your stake and the bookmaker’s stake is represented by numerical odds. If you see odds of 3 to 1, it signifies that the bookmaker has staked three times the money you have on the outcome.
Betting odds are based on probability and represent how likely an event is to occur. The probability would be easier to compute if we were working with a really randomized game. Because there are only six possible outcomes when rolling a die, you have a one-in-six chance (or 16.67% likelihood) of rolling a 2.
Odds can be expressed in three ways, and depending on where you live, you’ll see one or more of them more frequently.
Odds in Fractions
This style is more common in the United Kingdom, though the trend is to include decimal odds as well (which are discussed below). Fractional odds indicate how likely an event is to occur.
If you conceive about fractional odds as A/B, you may use the following method to get the probability: B / (A+B) x 100 =%
Here are a few examples of probabilities that were initially stated as fractions:
- 9/1 odds: 1 / (9+1) x 100 = 10% chance
- 4/1 odds: 1 / (4+1) x 100 = 20% chance
- 1/4 odds: 4 / (1+4) x 100 = 80% chance
Fractional odds also indicate how much you can win for each unit staked. For example, if you bet on an event with 9/1 odds, you can win 9 units for every 1 unit wagered.
Using the same A/B combination as an example, you can win back A for every value of B that you bet (plus your returned original stake).
- 9/1 odds: For every $1 you bet, you can win $9.
- 4/1 odds: For every $1 you bet, you can win $4.
- 1/4 odds: For every $4 you bet, you can win $1.
The potential restriction of fractional odds is that they only indicate gains, whereas decimal odds can represent your complete payment (including your original wager) if you win.
Odds in Decimal
This method of showing odds is widespread on many betting websites. These figures represent the potential return on your initial stake if your bet is successful. The probability of a result can be easily calculated using decimal odds: (1 / decimal odds) x 100 =%
Some probabilities that were initially stated as decimals are as follows:
- 9.0 odds: (1 / 9) x 100 = 11.11% chance
- 4.0 odds: (1 / 4) x 100 = 25% chance
- 2.5 odds: (1 / 2.5) x 100 = 40% chance
And, as with fractions, you can utilize the numerical odds provided to determine your possible profits. You can apply the following formula: (odds x stake) – stake = winnings
In this approach, you would subtract your initial stake since, while your stake will be multiplied by the odds, you do not regard making back your initial bet as part of your actual gains.
Here are some examples, each with a $10 stake:
- 9.0 odds: (9.0 x $10) – $10 = $80 winnings
- 4.0 odds: (4.0 x $10) – $10 = $30 winnings
- 2.5 odds: (2.5 x $10) – $10 = $15 winnings
Of course, if you don’t want to deduct your original stake from the final amount of money you’d receive from the sportsbook, you don’t. So 9.0 odds equates to a total payoff of $90 (9.0 x $10).
This is why decimal odds are perhaps the easiest to understand and are becoming increasingly popular around the world.
Moneyline Odds
Because this style is most widely used in the United States, it may also be referred to as American odds.
These odds are shown as either positive or negative. Underdog odds are denoted by a plus (+) sign, indicating the amount you might win for every $100 wagered. Meanwhile, the odds for favorites (indicating that they are expected to win) are denoted by a negative (-) sign. This is the amount you’d have to bet to win $100.
In all cases, you receive your initial stake plus the amount you won.
To determine each team’s chance using moneyline odds, apply the following formulas:
- Underdog/positive odds: 100 / (positive odds + 100) x 100 = %
- Favorite/negative odds: negative odds / (negative odds + 100) x 100 = %
As an example, consider two basketball teams. The NCAA Women’s Final Four pits Baylor against UConn, and here are the moneyline odds:
+585 (Baylor)
UConn: -760
To determine the likelihood of the underdog (Baylor) winning, enter the following formula: 100 / (585 + 100) x 100 = 14.59% chance
To calculate the odds of the favorite (UConn) winning, use the following formula: 760 / (760 + 100) x 100 = 88.37% chance
Let’s look at how much you’d have to bet and how much you may win.
The bookmaker has put Baylor’s odds at +585, which suggests they have a smaller possibility of Baylor winning (just under 15%). To win $585, you’d need to wager $100 on Baylor. If Baylor wins this upset, you’ll get your $100 back in addition to your $585 winnings, for a total payoff of $685.
However, because UConn is labeled as the favorite, they have a higher implied probability of winning the game. If you wanted to gamble on them, you’d have to put down $760 to win $100. If UConn wins, you’ll get your initial $760 wager back plus your $100 profit, for a total payout of $860.
What’s the Difference?
Is there a distinction between these three methods of representing odds? In practice, no. They’re just three distinct ways of presenting the same concept, with no ultimate change in reward sizes.
However, now that you know how to compute probabilities and potential payouts for each of these betting types, you may make better informed decisions about how you wish to wager.
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