If you are new to sports betting, it is easy to get confused about what the odds represent at the different online sportsbooks. However, to become a successful odds bettor, the first core skill you need to know is how to read the odds.
This article will help you understand what betting odds are, the main types of betting odds at sportsbooks, and how betting odds work.
Once you master these, you will be able to use odds comparison tools to help you maximize your profits!
What are Betting Odds?
Betting odds are values that represent the possibility of an outcome of an event. Typically, betting odds are drafted and compiled by bookmakers.
Now, there are a lot of factors considered by these sports books before releasing these betting odds. These bookmakers work real-time with analysts, statisticians to use historical data to analyze the potential of all possible outcomes. These betting odds determine how much profit you can make on any bet.
What are the Types of Betting Odds?
Since there are various ways in which betting odds are presented, it is very important to understand the different formats that betting odds are shown.
In this article, we will touch on three of the most popular betting odds formats:
- British Odds (Fractional Odds)
- American Odds
- European Odds (Decimal).
British Odds (Fractional Odds)
Fractional odds, popular in the United Kingdom and Ireland, are presented as fractions or ratios. They represent the potential profit relative to the stake.
How Do Fractional Odds Work?
Example: Team B has odds of 5/1 to win a game.
- The number on the left side of the fraction (5) represents the potential profit.
- The number on the right side of the fraction (1) represents the stake.
- To calculate potential profits, multiply the stake by the numerator (5) and divide the result by the denominator (1). In the example above, a $1 bet on Team B would result in a profit of ($1 x 5) / 1 = $5.
- Add the stake to the potential profit to determine the total payout. In this case, the total payout from a $1 bet on Team B would be $5 (profit) + $1 (stake) = $6.
So, if you place a bet of $1 on Team B to win, this means your return will be $6.
American Odds
American odds, most prevalent in the United States, are presented as positive or negative numbers. They indicate the amount you need to bet to win $100 (negative odds) or the amount you would win from a $100 bet (positive odds).
How Do American Odds Work?
For this type of odds, it is common to see them represented with a (+) or (-) sign attached to the values. The (-) sign means that the person or team is the favorite to win; meanwhile, the (+) sign means the person or team is favored to lose.
For example, let’s say there is an NBA game between the New York Knicks and the Brooklyn Nets.Example: The odds for the New York Knicks to win is +200.
- Positive odds represent the amount you would win from a $100 bet. In this case, a $100 bet on the New York Knicks would result in a profit of $200 if the Knicks win.
- Add the stake to the potential profit to determine the total payout. In this case, the total payout from a $100 bet on the Knicks would be $200 (profit) + $100 (stake) = $300.
So, if you place a bet of $100 on the New York Knicks to win, this means your return will be $300.
On the other hand, if the odds are negative (-125) for the Brooklyn Nets the below calculation applies.
Example: The odds for the Brooklyn Nets to win is -125
- Negative odds represent the amount you need to bet to win $100. In this case, a $125 bet on the Brooklyn Nets would result in a profit of $100 if the Nets win.
- Add the stake to the potential profit to determine the total payout. In this case, the total payout from a $125 bet on the Nets would be $100 (profit) + $125 (stake) = $225.
So, if you place a bet of $125 on Brooklyn to win, this means your return will be $225.
European Odds (Decimal Odds)
Decimal odds are the most commonly used format in many parts of the world, including Europe, Australia, and Canada. They are presented as a numerical value, typically with two decimal places.
How Does Decimal Odds Work?
Unlike the others discussed so far, this type of betting odds is quite easier to grasp. In this case to get the expected return of a bet, simply multiply your stake by the decimal odds.
Example: Team A has odds of 2.50 to win a game.
- The decimal number represents the total payout you will receive per unit stake (including your original stake). In this case, a $1 bet on Team A would result in a total payout of $2.50, including your initial $1 stake.
- To calculate potential profits, subtract your stake from the total payout. In the example above, the potential profit from a $1 bet on Team A would be $2.50 – $1 = $1.50.
So, if you place a bet of $1 on Team A to win, this means your return will be $1.50.
FAQ
Where can I compare odds to get the based value for my bet?
Odds comparison tools, also known as odds aggregators, can be very useful when comparing odds across sportsbooks. We recommend using Moneylines to compare odds across multiple sportsbooks and track and calculate your potential profit!
What is the benefit of using an odds comparison tool?
There are many benefits of using an odds comparison tool when betting. To learn more read this article to learn about the benefits of odds comparison.
What does over 150.5 in basketball mean?
Total bets are bets in which you are betting on the maximum points that will occur in a basketball game. In the example above, if you are betting on over 150.5, this means you believe that the score of the basketball game will total over 150.5 points. Meaning that if the score ends up being 160 or above, you will win. If the team scores below 150.5, you will lose.
