How do Odds Work in Sports Betting
If you are new to sports betting, you must take some time to learn and understand various terms relating to it. Doing this will help you get familiar with how betting works and how you can make the most out of it.
One common question newbies ask about betting is what the odds are and how they work. Coming across betting odds for the first time may get you overwhelmed, but you shouldn’t—it is just simple arithmetic. In case you have been wondering, the concept of betting odds is not as complex as it might look.
In this article, you will learn how to read and interpret betting odds to place smart bets on sports, in casinos or any event whatsoever. If you are ready, then we should get started.
Types of Betting Odds
There are three main types of betting odds, usually differing based on location. They include:
- Moneyline Odds (American): widely used in the USA.
- Fractional Odds (British): widely used in the United Kingdom and Ireland.
- Decimal Odds (European & African): widely used in Europe, Canada, Australia and Africa.
Amongst these types, the most common is the decimal odds. As a result, this article will focus on decimal odds and how to read, interpret, and bet on them.
How decimal odds work
Decimal odds, also known as digital or continental odds are the most common kinds of odds. You should note that these odds are not limited to Europe and Africa, they are also used in other parts of the world.
The reason why decimal odds are quite common is because they are simple to read and understand. Working with decimal odds is also very easy, even for a below-average mathematics student.
With decimal odds, you can easily recognize the favourites and underdogs in a game just by looking at the numbers. Usually, the smaller odd is used for the favourite, while the bigger odd is used for the underdog.
The figure in decimal odds indicates the total amount (including your stake) you can win for every N1 you wager. In other words, your stake is already included in the decimal number (no need to add back your stake), which makes it very much easier to calculate.
You can calculate your total payout on a stake on decimal odds as:
T= S × D.O;
where T = Total payout (stake + profit)
S = Stake
D.O = Decimal Odds
Let us work with an example of a football match between Real Madrid and Manchester United. Suppose the denial odds in the game are:
Real Madrid: 1.55
Manchester United: 4.25
These numbers represent the amount you could win for every naira you stake on the particular odds. For example, if you bet N1,000 on Manchester United to win the game at the end of regular time, you could receive a total payout of N4,250 (N1,000 × 4.25).
The figure above includes your initial stake of N1,000, resulting in a net profit of N3,250 (N4,250 – N1,000).
Similarly, you would receive a total payout of N1,550 (N1,000 × 1.55) if you successfully bet the same N1,000 on Real Madrid. This leaves you with a net profit of N550 (N1,550 – N1,000) after deducting your N1,000 stake.
From this example, we can see that the bookmaker correctly positioned Real Madrid as the favourite to win the football match, since it has smaller odds compared to Manchester United, who are the underdogs.
Essentially, higher potential winnings (total payout), which is relative to higher decimal odds, indicate that the team or player you have selected has a lesser probability of winning (in the bookmaker’s opinion). This also indicates that you are betting on the riskier option.
Types of Bets
Here are a few of the most popular options on the types of bets you can make on sports betting sites:
Moneyline: This is basically betting on which team will win or lose the game. On most bookies, you will find this option as W1 (Team 1 to win) and W2 (Team 2 to win).
Draw: Just as it implies, the draw option is used to bet that the football game will end in a scoreline draw, at regular time (90 mins).
Double Chance: This is a combination of the moneyline and draw option implying that a team will either win or draw at the end of the regular time. It is usually represented as 1X(Team 1 to win or draw) and 2X(Team 2 to win or draw).
Overs/Unders: This option is one of the most popular in football betting and many bettors even consider it as a safer option compared to others. Betting on this option is a probability of how many goals will be scored in the football match.
An OV1.5 option implies that the match will end with a minimum of 2 goals. A U1.5 option implies that the match will end with a maximum of 1 goal.
The over and under option in football betting is not limited to goals alone. It is used to bet on corners, yellow/red cards, player stats, offsides, and many other categories.
Draw No Bet (DNB): The DNB option is quite similar to the Double Chance option I explained earlier. However, when you bet on DNB, the team selected must win the game for your bet to be valid. If the outcome of the game is a draw, your bet will be void and the odds will not be valid.
Handicap: The handicap betting option in football and other sports is not easily understood by bettors. Let me give you a clear picture of what it means.
How do Odds impact Payout?
Betting odds are in direct variation with your total payout on an event. That is, the greater the odds against a team, the larger the layout will be for you if you decide to bet on that team and win. It is a choice of whether you are willing to take the risk or not.
For example, 3.5 odds mean that for every N1,000 you wager, you could win N3,500 if your bet is successful, while 5 odds mean you could win N5,000 for every N1,000 you bet. It is as simple as that.