In a Nutshell,
The chance of an event occurring, accompanied by a number that can be displayed in several formats (American, Decimal, Fraction)
For example, if you select American Odds, it’d be displayed as “+100” whereas Decimal Odds would be displayed as “2.0” and Fraction Odds would be displayed as “1/1”
If the odds are -110, you’ll need to bet $110 to profit/gain $100. If the odds are +110, you’ll profit/gain $110 from a $100 bet
Odds are extremely crucial in sports betting. It is the way by which sportsbooks communicate their opinion on the possibilities surrounding a particular game, event or proposition. The likelier that a certain event will take place in sports, the lower the odds offered by sportsbooks on it will be. Betting odds are also used in calculating the expected payout of a bettor in relation to the stake. The higher the stakes are on a particular bet, the bigger the payout will be if the bet wins.
Betting odds appears in number, and they mathematically reveal bettors' potential winning in relation to their wager. There are three main types of betting odds which are adopted in different parts of the world, the fractional odds, decimal odds and the moneyline odds. Each of the three betting odds formats has its own unique method of calculation and reading. Some sportsbooks, however, allow users to switch between the three odd formats.
It is to be noted that the three odds types represent the same thing in alternate ways. The three formats hold no difference in the amount of the expected payout on a certain wager. We take a detailed look at the three types of odds and how they are calculated.
Moneyline Odds
Also known as the American odds or the U.S. odds, moneyline odds is popular in the United States. It is the default odd type on American sportsbooks as well as other books that serve the American bettors. The odds are displayed in positive and negative figures and are centered around betting and winning $100. The two teams involved in a matchup are tagged favorite and underdog. The odds of the favorite team appears with a negative sign (-), while the underdog's odds come with a positive sign (+).
As noted earlier, the figures in the odds of both favorite and underdog are centered around wagering and winning $100. Therefore, the odds of favorite represent how much to be wagered to win $100 while the underdog's odds suggest how much to be won if $100 is wagered. For example, a football matchup odds could go as follow:
Team A: -150 (Favorite)
Team B: +325 (Underdog)
To calculate the expected payout in the above matchup, the $100 in which the moneyline odd is centered upon has to be employed. Therefore, bettors have to wager $150 on "Team A" to win an $100 profit while an $100 stake on "Team B" will give bettors a profit of $325.
Calculating Winnings in Moneyline Odds
There's a mathematical formula that can be used in calculating winnings in the moneyline odds format. The formula is
Odds/100 = Stake/x
Therefore, if $60 is wagered on the above Team A using the mathematical formula, we will get:
150/100 = 60/x
Cross-multiply the equation to get 150x = 6000
Then solve for “x”; x = 6000/150
Final answer equal to = 40
Therefore, bettors will make a profit of $40, and when added to the $60 stake, the total payout will equal $100.
Fractional Odds
Also known as the British odds or traditional odds, fractional is popular in the United Kingdom and Ireland. It is the default odd format British and Irish bookmakers present to bettors within its shores. The odds type is typically written in fractions, with the numerator and denominator playing a significant role in determining the payout. The numerator is what you win against every denominator wagered. Place a bet on an 8/1 odds simply means $8 will be won by bettors on every $1 wagered.
In a head-to-head context, a 7/3 odd for "Team A" in a matchup against "Team B" suggests that if the game was played 10 times, Team A would lose 7 of the encounters and win only 3. Therefore, a result or event is unlikely to happen when the numerator is bigger than the denominator, and likely to occur when the numerator is smaller than the denominator.
Calculating Winnings in Fractional Odds.
The mathematical formula for calculating the potential winning in a fractional or British odd goes below:
Stake x (Numerator/Denominator)
Therefore, in calculating the winnings if $50 is wagered on the above Team A using the mathematical formula, we will get:
50 x (7/3)
50 x 2.333
= 116.66
Therefore, the winnings for the bettor after staking $50 is a total of $116.66
Decimal Odds
Also known as the European odds or continental odds, decimal odd is popular across the European and African continent, as well as Canada, Australia, and New Zealand. The odd format is the simplest and easiest to read. By mere looking at the figures, the favorite and underdog can be spotted instantly. The decimal odd figure represents the amounts to be won on every $1 wagered.
In the decimal odd system, the number represents the total payout rather than the profit alone. In essence, the calculation of the European odd payout effectively includes the stake. For example, if "Team A" is assigned a 1.75 odd in an encounter against "Team B", a stake of $100 will return a payout of $175. The $175 total payout includes the $100 stake and the $75 profit.
Calculating Winnings in Decimal Odds
The mathematical formula used in calculating the potential winning of a decimal odds is stated below;
Stake x Odds
Therefore, in calculating the winnings if $60 is wagered on the above Team A using the mathematical formula, we will get:
60 x 1.75
= 105
Therefore, the winnings for the bettor after staking $60 is a total of $105.
Betting Odds FAQs
How are Odds Created
Sport betting odds are manufactured through a number of analytic factors. The way odds are created has evolved overtime. The industry used to be dominated by the old-school Vegas oddsmaker. Sportsbooks now use analytical software and algorithms to bring out matchup odds in modern days.
Do Odds Differ between Sportsbooks?
Odds vary from one sportsbook to the other, but the differences in modern days aren't so wide. Bettors can check around a number of sportsbooks to see which of them offer the best odds.
Which is the Most Popular Odd Type?
The three odd types are popular in different parts of the world. However, the decimal odd format covers the widest range across the globe.
Can the Odd Type be Switched on Sportsbooks?
Some sportsbooks are equipped with technicalities that ensure users can switch between the three odds formats. Users can therefore switch to their preferences if the sportsbook has the functionality.
