How Do Betting Odds Work?: What You Need To Know
You have most certainly heard of the term betting odds whether you are into gambling or not.
Betting odds represent the probability of something happening and the winnings that you stand to gain if it does. They show the chance of an outcome in monetary terms.
They are also illustrated by a ratio of the amounts staked by the player and the betting company.
How Betting Odds Work
Betting odds are represented by different measuring scales depending on your location. They mean the same thing but just vary in units of measurement.
There are 3 different odds formats:
This format shows the total money returned from a wager and not just the profits. Here, to calculate your prize money, you multiply your stake by the decimal odds.
For instance, if the decimal on the team you wish to bet on is 2.500 and you want to stake $100, you multiply the two to make $250, which is what you stand to win.
This format demonstrates the ratio of the amount to be won against the wager you make.
For example, 2/1 means that for every $2 you bet (your stake), you get back $1 (your winnings) for a total collection of $3.
This format shows how much you have to wager and win from 10 or 100 or 1000 units, etc.
This format consists of negative and positive odds.
- Negative odd
-110 means that if you bet $110, you’ll get $100 in profit,$220 in total. Here the returns are lower because the odds of the outcome are higher.
- Positive odds
+120 means that if you bet $100, you’ll get $120 in profit. The return here is higher because the odds of the outcome are lower.
In an EPL football match, American odds are as below:
Chelsea FC: -145
Manchester United FC: +130
If you bet on Manchester United, it means that for every $100 you stake on them, you will win an additional $130. In this case, they are the underdogs.
However, when you bet on Chelsea, you will win an additional $100 for every $145 you bet on them. They are the favorites here.
3 Main Types Of Bets
- A Moneyline Bet
Where your wager is on a competitor winning the game. How they win is not a factor. All you do is predict the winner.
Moneyline bets are generally the most preferred because they are often easy to predict and offer the least risk.
- Point spread Bet
Where you stake your wager on what team will outperform their expectations. This usually applies to high-scoring games like basketball.
The sportsbook will set a line basing on how well they think each team will perform during the game. Then you bet on what team will do better than that set line.
- Totals Betting
Where you bet on the total number of points or goals scored in a game. Here, the sportsbook decides on the total number of points or goals they think will be scored in a given game.
That number is reduced by half a point, i.e., 100 projected points become 99.5. This gives you the player a chance to bet over or under the 99.5. You can bet on 99 (under) or 100 (over).
A Practical Example
When betting on a football match, the chance of the game happening, along with all its events, is 100%. In betting, we call that the overround.
The match's outcome could be either Team Red or Team blue wins, or they draw.
If team red is the superior team, the chances of them winning are 50%. Team blue, which isn't that good, has a chance of winning at 30%. The possibility of a draw is 20%. All the options totaled, make the 100%.
If you are a player planning to bet on this game, the sportsbook will have different grading systems to value the bets for this game. These are expressed in the formats discussed. Based on these grades, you can then place your bets.
You must understand how betting odds work so that you know how and where to place your money.
For sports, betting wisely depends more on how well you can predict a team's performance. If you understand the game and the different teams well, you will be better equipped to make the least risky wagers.
So, you can check out the different betting platforms and see how these betting odds work practically.