- Sports Betting Odds Explained Many people don't know how to read or calculate sports betting odds, so below we have done our best on explaining how betting odds work. The most common type of sports betting odds used in North America are the American style odds which we explain below.
- The odds for each card are the same. But in horse racing betting, for example, the odds vary, depending on factors such as the horse, jockey, conditions, trainer and many other variables. That's why bookmakers set different odds for different outcomes, based on the probability of that outcome eventuating. Betting odds and probability.
- Gambling Point Spread Explained Definition
- Gambling Point Spread Explained Charts
- Gambling Point Spread Explained Chart
If you want to come out on top against the bookies it is vital that you understand the fundamentals. When it comes to sports betting there is nothing quite as fundamental as the odds that the bookies offer. Unfortunately, betting odds can prove very confusing. That's especially true for people who are new to betting.
That's where this article comes in. We're going to explain exactly how betting odds work, how they are set and the differences in the ways they are displayed. After taking in all the information below, you will be much better equipped to set about making some profit.
What Do Betting Odds Represent?
At their most basic, betting odds tell you two things:
- How much you stand to make should the selection win
- The probability of the selection winning
The point spread is used to lend equal betting appeal to both sides of the bet. When betting against-the-spread, both sides of the bet generally pay the same. It just doesn't pay as much as you bet. The industry-standard for against-the-spread wagers is a -110 line, meaning for every $100 you want to win, you have to wager $110. A point spread in sports is a way for oddsmakers to make a matchup between two unbalanced teams more balanced by giving points to or taking points away from each team.
Take this example. If you were looking through the weekend Premier League fixtures and saw a team had fractional odds of 2/1 (that's decimal odds of 3.0) you would know that you stand to win £2 in profit from every £1 that you stake should the team win. You'd also know that the bookmaker who set the odds ranks the team's chances of winning as one in every three times the game is played.
If you saw a team had fractional odds of 8/13, you'd know that for every £13 you stake, you will win £8 or profit and that if the game was played 21 times in total, the bookies think the team would win 13 times and fail to win eight times (what is known as the implied probability).
Working out an implied probability percentage from fractional odds is simple. You just divide the stake by the combined sum of the two numbers which make up the fractional odds. In the case of 2/1 the equation looks like this:
1 / (2+1) = 0.33 or 33%
For odds of 8/13 this is the equation:
13 / (8+13) = 0.62 or 62%
That's how the maths works but when it comes to the actual odds that bookmakers set, it's a little more complicated.
How Do Bookmakers Set Their Odds?
The basic business model of a sportsbook is fairly uncomplicated. Bookmakers set the odds and take bets on an event. When that event ends they pay out everyone who backed the winner and then keep the rest for themselves.
But, consider the following horse race.
| Selection | Fractional Odds | Decimal Odds | Implied Probability | Profit From a £10 Bet |
|---|---|---|---|---|
| Horse 1 | Evens | 2.0 | 50% | £10 |
| Horse 2 | 3/1 | 4.0 | 25% | £30 |
| Horse 3 | 7/1 | 8.0 | 12.5% | £70 |
| Horse 4 | 7/1 | 8.0 | 12.5% | £70 |
As you can see, the combined implied probability of the selections above is 100%. From a bookmaker's perspective that is a big problem. That's because, presuming they've got the same amount of liability on each selection, they'd never make any money as they'd have to collect and payout the same amount.
So, the bookmakers will build something called an overround into their odds. Here's a real example of a match odds market from a football match:
| Selection | Fractional Odds | Decimal Odds | Implied Probability | Profit From a £10 Bet |
|---|---|---|---|---|
| Man Utd | 1/2 | 1.5 | 66.7% | £5 |
| Draw | 18/5 | 4.6 | 21.7% | £36 |
| West Ham | 13/2 | 7.5 | 13.3% | £65 |
With an total implied probability of 101.7%, the bookmaker who set those odds is guaranteed to make a profit of 1.7% assuming that they have the same amount of liability on all three selections. Of course, it rarely works out that the bookies manage to spread their liability evenly but you need to know that when you look at a betting market you're not simply looking at a reflection of how the bookies think the event will pan out. There's much more going on behind the scenes.
Armed with this knowledge of how the bookmakers set their odds, you can concentrate on finding value. That is, finding a bet where you believe the odds (and therefore the implied probability) is too big. If the bookies think that a side has a 50% chance of winning but you think they've got a better chance than that, that's value.
The Difference Between Decimal and Fractional Odds
Epiphone casino elitist sweetwater casino. You will have seen above that we've spoken about both fractional and decimal odds. They are just different ways of conveying the same information but they do add another layer of complexity.
All the major online bookmakers will shows their odds as both fractions and decimals so it's important that you understand just what they are showing and how to switch between the two. Thankfully, it only requires simple maths.
To go from a fraction to a decimal is as easy as dividing out the fraction and adding one. Here's how that looks for odds of 2/1:
(2/1) + 1 = 3.o
And using our second example from above, 8/13, it looks like this:
(8/13) + 1 = 1.62
If you want to go from decimal odds to fractional odds is similarly simple. You just minus one from the decimal odds, turn that number into a fraction and reduce it down to it's simplest form.
Let's take decimal odds of 4.5, this is the equation:
4.5 – 1 = 3.5
35/10 -> 7/2
If the decimal price is 1.25, you convert it into fractional odds like this:
1.25 – 1 = 0.25
25/100 -> 1/4
Gambling Point Spread Explained Definition
Here's a list of some of the most common fractional odds and their decimal equivalents (for a more in-depth list click here).
| Fractional Odds | Decimal Odds | Implied Probability |
|---|---|---|
| 1/10 | 1.10 | 90.9% |
| 1/5 | 1.2 | 83.33% |
| 2/5 | 1.4 | 71.43% |
| 1/2 | 1.5 | 66.67% |
| 1/1 (evens) | 2.0 | 50% |
| 3/2 | 2.5 | 40% |
| 2/1 | 3.0 | 33.33% |
| 4/1 | 5.0 | 20% |
| 9/1 | 10.0 | 10% |
| 100/1 | 101.0 | 0.99% |
Key Terminology
Gambling Point Spread Explained Charts
When reading betting advice or searching for a value bet on the bookies' websites you'll come across some key terms relating to betting odds. To round up our article on betting odds, we've covered the most widely used terms to ensure you don't get confused in your search for winners.
Stake – The amount of money that you place (or wager) on a specific bet.
Price – The price of a bet is simply another way of referring to the odds. You can either say that a football team can be backed at odds of 2/1or that their price is 2/1.
1 / (2+1) = 0.33 or 33%
For odds of 8/13 this is the equation:
13 / (8+13) = 0.62 or 62%
That's how the maths works but when it comes to the actual odds that bookmakers set, it's a little more complicated.
How Do Bookmakers Set Their Odds?
The basic business model of a sportsbook is fairly uncomplicated. Bookmakers set the odds and take bets on an event. When that event ends they pay out everyone who backed the winner and then keep the rest for themselves.
But, consider the following horse race.
| Selection | Fractional Odds | Decimal Odds | Implied Probability | Profit From a £10 Bet |
|---|---|---|---|---|
| Horse 1 | Evens | 2.0 | 50% | £10 |
| Horse 2 | 3/1 | 4.0 | 25% | £30 |
| Horse 3 | 7/1 | 8.0 | 12.5% | £70 |
| Horse 4 | 7/1 | 8.0 | 12.5% | £70 |
As you can see, the combined implied probability of the selections above is 100%. From a bookmaker's perspective that is a big problem. That's because, presuming they've got the same amount of liability on each selection, they'd never make any money as they'd have to collect and payout the same amount.
So, the bookmakers will build something called an overround into their odds. Here's a real example of a match odds market from a football match:
| Selection | Fractional Odds | Decimal Odds | Implied Probability | Profit From a £10 Bet |
|---|---|---|---|---|
| Man Utd | 1/2 | 1.5 | 66.7% | £5 |
| Draw | 18/5 | 4.6 | 21.7% | £36 |
| West Ham | 13/2 | 7.5 | 13.3% | £65 |
With an total implied probability of 101.7%, the bookmaker who set those odds is guaranteed to make a profit of 1.7% assuming that they have the same amount of liability on all three selections. Of course, it rarely works out that the bookies manage to spread their liability evenly but you need to know that when you look at a betting market you're not simply looking at a reflection of how the bookies think the event will pan out. There's much more going on behind the scenes.
Armed with this knowledge of how the bookmakers set their odds, you can concentrate on finding value. That is, finding a bet where you believe the odds (and therefore the implied probability) is too big. If the bookies think that a side has a 50% chance of winning but you think they've got a better chance than that, that's value.
The Difference Between Decimal and Fractional Odds
Epiphone casino elitist sweetwater casino. You will have seen above that we've spoken about both fractional and decimal odds. They are just different ways of conveying the same information but they do add another layer of complexity.
All the major online bookmakers will shows their odds as both fractions and decimals so it's important that you understand just what they are showing and how to switch between the two. Thankfully, it only requires simple maths.
To go from a fraction to a decimal is as easy as dividing out the fraction and adding one. Here's how that looks for odds of 2/1:
(2/1) + 1 = 3.o
And using our second example from above, 8/13, it looks like this:
(8/13) + 1 = 1.62
If you want to go from decimal odds to fractional odds is similarly simple. You just minus one from the decimal odds, turn that number into a fraction and reduce it down to it's simplest form.
Let's take decimal odds of 4.5, this is the equation:
4.5 – 1 = 3.5
35/10 -> 7/2
If the decimal price is 1.25, you convert it into fractional odds like this:
1.25 – 1 = 0.25
25/100 -> 1/4
Gambling Point Spread Explained Definition
Here's a list of some of the most common fractional odds and their decimal equivalents (for a more in-depth list click here).
| Fractional Odds | Decimal Odds | Implied Probability |
|---|---|---|
| 1/10 | 1.10 | 90.9% |
| 1/5 | 1.2 | 83.33% |
| 2/5 | 1.4 | 71.43% |
| 1/2 | 1.5 | 66.67% |
| 1/1 (evens) | 2.0 | 50% |
| 3/2 | 2.5 | 40% |
| 2/1 | 3.0 | 33.33% |
| 4/1 | 5.0 | 20% |
| 9/1 | 10.0 | 10% |
| 100/1 | 101.0 | 0.99% |
Key Terminology
Gambling Point Spread Explained Charts
When reading betting advice or searching for a value bet on the bookies' websites you'll come across some key terms relating to betting odds. To round up our article on betting odds, we've covered the most widely used terms to ensure you don't get confused in your search for winners.
Stake – The amount of money that you place (or wager) on a specific bet.
Price – The price of a bet is simply another way of referring to the odds. You can either say that a football team can be backed at odds of 2/1or that their price is 2/1.
Odds On & Odds Against – Two of the key terms that you'll hear when it comes to betting odds are ‘odds on' and ‘odds against'. These terms refer to whether a price is greater or lower than evens. Any price above evens is known as odds against, while anything below evens is odds on.
Gambling Point Spread Explained Chart
Short and Long Odds – If something is described as being short odds it means the price is low. A long odds shot will provide you with a bigger win but is much less likely to win.
