How Do Odds Work?
It is essential that you understand how odds work when you’re getting ready to start sports betting. A lack of comprehension of the basics of decimal and/or fractional odds and/or American odds could lead to losses. You could place a bet on what you thought was something else!
What Are Betting Odds?
Think of betting odds as a bookmaker determining the likelihood of a particular outcome occurring. For example, Vauban’s odds at the time of writing are 7/2.50 in the Melbourne Cup odds. This is after he featured amongst over 100 nominations for The Race That Stops a Nation. Betting odds are the ratio between bookmakers and bettors stakes.
So, 7 means that the bookmakers stake 7 times the amount the bettor has bet. If the bettor wins because the outcome they predicted materialises, they’ll collect 7x their bet from the sportsbook. For example, if you bet 10, you would collect 80 in this example, making a profit of 70 and your initial stake.
How Do Betting Odds Get Calculated?
The sportsbook calculates the betting odds. They will estimate the likelihood of an event occurring and, based on this prediction, display the odds. For example, Youth Spirit has a low chance of winning the Melbourne Cup. The odds of it happening are set at 301/76.00. This shows the slight chance of Youth Spirit winning. And the high payout bettors can expect if it actually happens! Now let’s take a look at the different odds formats.
American Odds
Although American odds are the most common format found at bookmakers in the United States of America, they’re not so frequently found everywhere else. If you do run into them, however, they’re easy to identify. Just look for a plus/minus format.
A favourite will always have a - sign next to its odds, and an underdog will have a + sign next to theirs.
Decimal Odds
The number in decimal odds represents the amount you’ll win for every 1 you wager. It’s also important to remember that the number represents the total payout, not just the profit. In other words, the amount you staked has already gotten included in the decimal number. You don’t need to add your stake back. This makes the calculation of the total payout a lot easier.
Fractional Odds
If you see 2 numbers separated by a slash, like 10/1, this is an example of a fractional betting odd. These allow you to calculate how much you’ll win on your bet in comparison to how much you’ve staked. The number on the left is how much you’ll win, so in this example, it’s 10 if you bet 1.
Always Compare Odds Across Sportsbooks
It’s vital that you keep in mind that the odds vary widely from one sportsbook to another and from event to event. This is because each bookmaker uses different algorithms to calculate the odds. They also have different opinions on the likelihood of an outcome occurring.
This is why it’s important to shop around. Doing this helps you find the best value for your bet and increases your chances of seeing a profit at the end of it.
