Betting Odds Explained
How Betting Odds Work
Many people are quite confused when they take their first look at the odds involved in sports book betting. This feel can be exacerbated by the several systems used in different areas of the world to denote the same thing. However, odds in sports betting are actually quite easy to understand once you know the general rules. Each system works in the same way and can be converted into each other. This article will explain how the various betting systems work to determine odds.
Odds are the likelihood of any event occurring based on the expertise of the professionals determining the odds. People usually determine odds based on a team or players previous performance, reputation or general standing in their league or organization. Odds also determine how much you would need to wager to win any money. Odds can appear in three different ways based on the preferences of the website with which you are placing the bet.
Decimal Odds
These odds are common in Europe. On this scale, 1.00 represents an even bet. This type of odds format is also commonly referred to as European odds in the United Kingdom. If decimal odds are used, the person placing the wager must put their money on the line before making the bet (unlike fractional odds).
These odds are among the easiest to understand as you do not have to calculate multiples of $100.00. To determine payouts, simply multiply your wager by the given odds and you will be able to tell how much the winning bet will pay. For example:
You are given decimal odds of 2.00 You place a wager of $100.00. 2.00 x $100.00 = $200.00 Your total winnings are $300.00
Fractional Odds
These odds mostly appear in the United Kingdom. On this scale, 1/1 represents an even bet. One of the most common appearances of this type of odds calculation is in horse racing. In each fraction, the first number is the amount that you stand to make on your bet while the second number is the stake that you make. For example:
To calculate your winnings you must first determine the fraction. If the first number is higher than the second (Ex. 4/1) you would simply multiply your wager by the first number. If the second number of the fraction is higher (Ex. 1/4) you must divide your wager by the higher number. For example:
You are given fractional odds of 4/1.
You place a wager of $20.00.
$20.00 x 4 = $80.00
Your total winnings are $100.00
You are given fractional odds of 1/4.
You place a wager of $20.00.
$20.00 / 4 = $5.00
Your total winnings are $25.00
American Odds
These odds are common in the United States and used at most American betting sites. On this scale +100 represents an even bet. These odds can become fairly complicated when compared to the other two systems but are not very difficult at all to understand. This system works by showing you exactly how much you would win if you bet on the team (or player) likely to lose the event.
In this system, a negative symbol before the odd denotes the team likely to win the event. A positive symbol before the odd denotes the team likely to lose the event. If the symbol is negative, you must wager that amount to win $100.00. However, if the symbol is positive, you must only wager $100.00 to win that amount. For example:
You are given odds of -125 (likely to win).
You place a wager of $125.00.
Your total winnings are $225.00.
You are given odds of +150 (likely to lose).
You place a wager of $100.00.
Your total winnings are $250.00.
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