American sportsbooks have, over the years, presented their odds in a different way from the rest of the world. The odd format they employed is now widely known across the world as American odds. Also known as moneyline odds, the American odds format has grown popular among sports bettors in the United States, and is even employed in other forms of sports gaming.
Although a couple of sportsbooks have created room for a switch, the moneyline odd is the default odd type on American sportsbooks; as well as other offshore bookies that serve the American bettors.
Moneyline odds are expressed in positive and negative numbers and are based on wagering and winning $100. The teams involved in an encounter are tagged favorite and underdog by the sportsbook. The favorite team has an odds that appears with a negative sign (-), while the underdog has an odd that appears with a positive sign (+). In a rare case in which both teams involved in the matchup are evenly matched, the two teams' odds come with a negative sign.
It has been clarified earlier that the lines of a favorite and an underdog in American odds are based on wagering and winning $100. Thus, the odds of a favorite team indicate how much to wager in order to win $100 while the odds of a matchup underdog indicate what can be won if $100 is wagered.
Different Ways American Odds are Used
American odds are basically used by sportsbooks in two different ways;
On their own
With a point spread or totals
American Odds on their Own
In this situation, American odds is basically in the moneyline bet type, which is about picking the outright winner of an encounter. American odds in this variant can also be used for other bet types which include proposition, future, etc.
In a practical example, "Team A" locks horn with "Team B" with the following odds:
Team A: -180 (Favorite)
Team B: +340 (Underdog)
In calculating the potential payout in the above matchup, the $100 base point in which the American odd is centered upon has to be made use of. Therefore, a stake of $180 on "Team A" is required to get a profit of $100, while an $100 stake on "Team B" will return a profit of $340.
How to Calculate Profit
Moneyline odds can be calculated using a mathematical formula that provides a more comprehensive basis for calculating winnings. It is calculated as follows:
Odds/100 = Stake/x
Therefore, in calculating the profit if $125 is wagered on the above Team A using the mathematical formula, we will get:
180/100 = 125/x
Cross-multiply the equation to get 180x = 12,500
Then solve for “x”; x = 12,500/180
Final answer equal to = 69.44
Therefore, a profit of $69.44 will be made when $125 is staked, leading the payout of $199.44
American Odds With a Point Spread or Totals
The other way the American odds are used is placing them next to a corresponding line in point spread and totals. In this situation, that odds dictates only what you have to risk and not what needs to occur for the bet to be won. For example;
Team A: -5.5 (-110)
Team B: +5.5 (+110)
In the above scenario, $110 has to be risked for every $100 aimed to be won when wagering on Team A which has to win by at least 6 points. It's pretty similar for Team B, $110 must be risked for $100 with the team winning the game or not losing by more than 5 points.
Since things equal are made equal by the spread, the spread in the game of football and basketball are usually -110 with a 10% tax. In sports that score less, the spreads are often low but the odds on each side will differ since it is more difficult for games like baseball, hockey, or soccer to win by more than a goal.
American Odds FAQs
Where is the American Odds Format Popular?
The American odd format is popular and widely used within the United States. The odd types have become acquainted with the country and it is the default odds format that appears on American sportsbooks such as DraftKings, FanDuel, BetMGM, Caesars, etc, as well other offshore sportsbooks offered to American bettors.
What Sign Signifies the Favorite and Underdog?
In the American odd format, the favorite of an encounter which has the better chances of winning is identified with the negative or minus sign (-), while the underdog whose chances of coming out victorious is lower is identified with the positive or plus sign (+).
Can there be a Third Option?
For sports like soccer and boxing which can end in a draw, there's a three-way moneyline option in the American odds that caters for the possibility of a tie. In this case, bettors will be presented the odds of the favorite, underdog and the third option of a draw.
How do the Odds Appear in a Pick'em?
In a pick'em situation where sportsbooks view the two teams involved in an encounter as evenly matched in terms of competitiveness and skills, the equal odds of both sides appear with a negative or minus sign (-).
What is the Base-Point Used in Calculating American Odds?
Potential winning in the American odds is calculated on a base-point of $100. Therefore, the figure that appears on the favorite odds is how much that needs to be wagered to win $100. On the other hand, the figure appearing on the underdog odds is what is to be won if $100 is wagered.
Are Vigorish Inserted into the American Odds?
Like every other odd type, vigorish or juice is inserted into the American odds by sportsbooks. Commonly referred to as "vig", vigorish is the percentage cut sportsbooks charge on every bet taken.
Is there an Online Calculator for American Odds?
It is very possible to calculate the American odds online. In modern days, odd calculators are present on most sportsbooks, and users can take advantage of them in calculating potential winnings from specific odds. Odds calculators are also available on major sports betting news websites.
Is the American Odds Convertible to Other Odds Format?
The American odds can be converted to the other odds format which include the fractional and the decimal. It involves short mathematical steps to convert the three odds format into one another.
