Sports Betting Odds Explained
Understand odds in sports betting with our guide
Sports betting is one of the fastest growing areas of gambling in the world and in order to get involved it is important to understand how the odds work for different markets.
Here, we will take a look at how you can get to grips with odds on sports betting markets to maximize your chances of coming away with a winning pay out and getting the result you want from the bet you place.
The fractional odds are considered to be the most commonly used form of odds presentation in the UK market. They are also referred to as “British odds” or “traditional odds”. The presentation of these odds show how much the punter will win from their bet compared to the amount they bet.
As an example, in image 1, if you were to place a bet on the horse race shown and you wanted to bet on the favorite, Acolyte, at odds of 5/2 then the fractional odds would show that if you placed a bet of $20 then you would win $50. The advantage of fractional odds is that it is flexible and shows that if you bet $40 then you would win two times that amount so you would win $100. It allows you to work out your winnings based on your bet.
Those punters that are unfamiliar with fractional odds might find it difficult working out their percentage chance of success. It is possible to work out your probability of a victory based on the odds. However, it should be noted that odds can fluctuate in the run-up to a sporting event so the odds only represent the probability of victory at that time and it is possible for these odds, and the probability of victory, to change after the bet has been placed.
The American odds are, unsurprisingly, most popular within the US market. These odds work very differently to fractional odds in the fact that they operate separately for favorites and underdogs. They are also referred to as “moneyline odds”.
The way that American odds work for betting on a favorite is that it shows how much money you would have to risk in order to win a certain amount. So if, for example, you were betting on the Campeonato Brasileiro Serie B soccer match between Boa Esporte Clube and Salgueiro AC in the attached example in image 3 then you would need to bet $138 on a Boa Esporte Clube win at odds of -138 in order to win $100 due to Boa Esporte Clube being the firm favorites to win the game.
On the flip side, when it comes to the underdog, the odds are represented in a different manner. Instead, they show how much you would win if you bet the $100. So using the attached example once more, if you decided to bet on Salgueiro AC in that match at odds of +350 then you would win $350 if you bet $100.
The use of decimal odds is something that has become more prevalent during recent years. They are most widely used in mainland Europe and Australia but younger punters are beginning to favor them more and more with sports betting becoming so popular online.
Decimal odds are presented to show the punter how much they will win without stating what bet is required. In the attached example, image 4, the contenders for the Copa America football tournament can be seen listed. If you were to place a $100 bet on the favorites Argentina at the price of 2.38 then you can expect to win $238.
The presentation of these odds might appear to be the most daunting upon first glance but it is soon clear to see that they offer an immediate insight into the potential winning sum you could earn. For convenience, it is easy to see why decimal odds are becoming very popular with online sports betting punters. Sports betting is all about allowing punters to bet in the comfort of their own home with ease and efficiency. This is a blueprint that decimal odds firmly fit into. For those that are used to fractional odds but wish to use decimal odds more, here is a conversion chart to show the comparisons between the two sets of odds.
Which One To Choose?
Choosing which format of odds to display when sports betting is mostly down to a matter of personal preference. Different punters find it easier to use different odds to place their bets. The majority of leading online sports betting firms offer punters the chance to display all three types of odds with the option to change the display whenever they choose.
Ultimately, sports betting online is set up to cater for each individual. You should simply choose the format of odds display that you are most comfortable using. There is the opportunity to learn the different types of odds by using an odds calculator or by switching the odds display with the bookmaker you are using to try betting using the different types of odds. However, the option to change the odds display back to your most preferred is always available.
Sports Betting FAQ
What are sports betting odds?
Sports betting odds are a way for customers to predict the result of a sporting event and wager an amount of money on that outcome. The bookmakers provide the odds for customers and are betting against you by accepting all bets placed.
How are the odds determined and calculated?
The aim of bookmakers is to provide odds for every side of a bet, as long as there is profit in it. Customers will have the opportunity to bet on anything, but ultimately the bookmaker is going to have an edge.
Bookmakers determine odds in a number of different ways, whether it's traders, odds compliers or risk analysts, the odds are always created in a way that reflects the actual chance of each result occurring. The bookmakers aren't predicting outcomes themselves, but are covering all aspects and bets in order to create fair and realistic odds.
Can the odds change?
Absolutely, sports betting odds are constantly changing before the sport event takes places. A number of things can affect the changing of odds, such as: the amount of money in the market, the overall betting patterns of the public, the specific sports itself and events leading up to the game and the odds different bookmakers are offering. Ultimately, the odds are always going to be changing and realising what the new prices mean will give you the opportunity to maximize your EV.
Are they different sport to sport?
Yes. The more popular the sport is, the more movement in the betting market there will be. For example, football is probably the most popular sport and huge sums of money change hands. With the amount of money in the market, betting odds fluctuate depending on where the money is being placed. Less popular sports will tend to have less favorable odds due to a lesser amount of money in the market.
How can I master odds?
There are a number of ways to make the most out of betting odds and give you the best chance of winning, such as:
- Sports betting research can go a long way when you're deciding on what bets to place. Whether it's statistical data or following tips, you'll have a good chance of winning more bets than you lose.
- Finding good value bets is key, especially in competitive markets. Converting odds into probability will give you an idea of how much value there is in certain odds. For example: 3/1 odds can be converted into 1/4 (take the bottom number over the sum of both numbers) to get the implied probability, which would be 25%. Also, taking in other factors such as the form of a team, can make a bet seem much more valuable than it may look.
- Keep placing bets. The more bets you place, the more familiar you will be with the odds being offered and what that means for your potential returns.
Is there such a thing as good odds?
Definitely. Good odds can be hard to notice for beginners, in all areas of gambling from casino game odds to sports betting. Though once you have a brief understanding of odds in certain sporting events, you'll be able to take advantage of the value on offer. Good odds will typically apply to the favourites of a match who are available to bet on at higher odds than expected.
Additionally, you will able to realise where good odds are being offered by comparing the odds of a certain match over a number of different bookmakers, in order to get the most value for your money.
How can I calculate the potential win?
As soon as you've placed your bet, calculating your winnings is a good way of helping you understand odds. The following example will help you understand basic odds and how you can calculate potential winnings.
If you place £10 on 3/1 odds and your team won, your winnings would be as follows.
- 3/1 = 3. Therefore, placing £10 as the 1 would represent £30 as the 3.
- Also, your stake is returned to you if your bet wins. Therefore, 3/1 would mean £10 returns £30 + the stake you placed = £40.
- Another example, £10 on 7/1 odds would return £80 (£70 initially + your £10 stake).