Did you know that the United States Supreme Court recently overturned the Professional and Amateur Sports Protection Act? Since doing so, more than half of all states have legalized forms of sports betting.
Many people who have never gambled before can now bet on sports. If you fall into this category, you likely have many questions that need answering.
Some common ones include, What are sports betting odds? And how do odds work in betting? If you want to learn the answer to these questions, and more, you’re in the right place.
In this betting odds guide, we’ll be teaching you everything you need to know about these odds. That way, you can start betting with confidence.
What Are Sports Betting Odds?
With the sports betting industry expected to approach $179.3 billion in value by 2028, there needs to be an objective way to determine the likelihood of a particular outcome for each game.
That’s where sports betting odds come into play. Odds in sports betting are vital because they determine the amount you need to bet to win a certain amount.
This amount of money is known as the payout. So, sports betting odds are used by oddsmakers or the person setting the bet. The oddsmaker will give each outcome of a game (a win, lose, or draw) a specific value based on the probability of it happening.
For example, if a team is expected to lose their game, the value of the bet increases. That’s because the chances of them winning are much lower.
Alternatively, if you bet on a favorite team expected to win, you wouldn’t make as much money on the bet.
How Do Odds Work in Betting?
Understanding betting odds can be confusing when you’re first starting out. The main reason for this is the fact that there are three different types of betting odds: fractional (aka British odds), decimal (aka European odds), and moneyline (aka American odds).
It’s important to note that these odds are really just different ways of presenting the same thing. As such, they don’t hold any difference in the amount of payout you’ll receive.
Still, it’s essential to learn how each of these different odds works. That way, you aren’t confused when you encounter them. So, in this section, we’ll go over each of them in more detail.
Fractional odds are most popular among British and Irish oddsmakers. A slash represents these types of sports odds. The first number in the slash represents the profit you stand to make, and the second number represents the money you need to stake.
For example, let’s take a look at what a 7/1 fractional odd would mean. Basically, it means that for every $1 you bet, you stand to win $7 if the outcome comes true.
But how do you determine the exact amount of money you can make with fractional odds? To do this, you will need to use a formula.
Basically, you’re going to use the formula X = (Y(Z)) + Y. Each value in the formula is as follows:
- X = The total payout you will receive from the bet
- Y = The amount of money that you decide to stake
- Z = The fractional odds
Let’s see how this formula works in action. You bet on a football team that comes with 10/3 odds. That means that for every $3 you bet, you stand to win $10. With these odds, you decide to stake $100.
So, we plug that into the formula as X = (100(10/3)) + 100. So, in the event that your football team wins, you would make $333.
In addition to this, you also get back the $100 you staked. So, your total payout for this bet would be $433.
Decimal odds tend to be a bit more streamlined and easy to understand than fractional odds. You’ll likely encounter these types of odds if you bet in Europe, New Zealand, Canada, and Australia.
With this system, the decimal will represent the amount of money you stand to win for every $1 you bet. This figure represents not just the amount of profit you stand to make but your entire payout.
You’ll use a similar formula to calculate this amount. Specifically, X = Y * Z where:
- X = The total profit you stand to make on the bet
- Y = The amount of money you decide to stake
- Z = The decimal odds
So, let’s take a look at this formula in action. A basketball team you like has 3.0 decimal odds of winning the championship. That means that for every $1 you decide to bet, you can gain $3 in profit if your team wins.
You decide to bet $200 on the game. So, using the formula, we would determine profit by plugging everything in: X = $200 * 3.0.
So, if your basketball team won the game, you would get $600 for your payout — $400 altogether in profit.
You’re most likely to encounter moneyline odds when you bet on sports in the United States. If you’re betting on the favorite, you’re going to see odds with a minus sign next to it.
This represents the amount of money you’ll need to put up in order to win $100. If you’re betting on the underdog, you’re going to see odds with a plus sign next to it.
This represents the amount of money you will win for every $100 you put toward the bet. Let’s say you’re betting on an American football game between the Philidelphia Eagles versus the Arizona Cardinals.
The Eagles are the favorites with a moneyline odd of -800. The Cardinals, being the underdogs, come with odds of +600. Basically, the oddsmaker is confident that the Cardinals likely won’t win.
So, if you bet $100 on the Cardinals, you could stand to win $600 in profit in addition to the $100 you put up, assuming they win. Betting on the Eagles provides you with better chances of winning.
But you don’t stand to make as much, and you need to put a lot on the line to get it.
Specifically, you will need to bet $800 on the Eagles just to make $100 in profit. So, while it might seem like a safer bet because they’re more likely to win, it can actually be considered riskier.
What Is a Pick’em Bet?
Pick’em bets occur when there is no clear favorite or underdog in the game. As such, both teams have an equal chance of winning the game. There are two ways you’re likely to encounter these types of bets.
The first is when both teams have +100 next to them. This means that the odds are essentially even for both.
You might also encounter the numbers replaced by two letters: PK. This is another way of displaying pick’em bets.
What Are Vegas Odds?
When you bet on sportsbooks in Vegas, you’re likely to encounter these types of odds. Basically, these are moneyline bets that also include a points spread.
These spreads contain the total amount of points that the oddsmakers think the teams will make.
With these types of odds, you can either bet over or under what the oddsmaker expects. It adds another layer of complexity to traditional sports betting.
How to Find the Best Bets
Now that you know how odds work, you’re likely eager to start placing bets. However, finding a bet with favorable odds can be challenging, especially if you’re just starting out.
So, to get the hang of things, we recommend using a guide that offers the best bets today. These types of resources do all the odds research for you. That way, you aren’t wasting money on rookie mistakes.
It’s a great way to learn the ins and outs of odds while reducing the amount of risk you take. Just make sure you’re using a daily betting guide that you can trust. Not all of these guides are created equally.
You want to make sure that the person running the website has suitable expertise to be predicting the outcome of certain games.
Appreciate Learning About Odds? Keep Exploring
We hope this article helped you answer the question, How do odds work in betting? As you can see, the odds are vital in determining the risks and potential rewards associated with each bet.
As such, you will want to have a firm grasp on how they work before you ever put money on the line. That way, you aren’t needlessly wasting money to understand how the system works.
Enjoy learning about this sports betting topic? If the answer is yes, you should keep exploring our website to find tons of similar content to enjoy.