The Basics of Sports Betting Odds
What You Need to Know
- Types of Betting Odds: Find out the various odds types in sports betting, including fractional, decimal, and American (moneyline) odds.
- Reading Odds: Know how to read and interpret the various odds types to discover the potential payout of a bet.
- Calculating Probability: Know how odds indicate implied probabilities of an event's outcome and how to calculate these probabilities from given odds.
- Use of Odds in Bets: Learn in betting how odds can potentially make a bet profitable, where there is a balance between perceived risk and reward.
- Advanced Odds Understanding: Know how sportsbooks set odds and how odds move based on betting trends, which can be utilized for strategic betting.
Odds are the lifeblood of gambling. They can provide you with useful information about how probable an outcome is and, more importantly, allow you to calculate how much money you'll receive from a winning bet.
There are three common methods of expressing odds: American, decimal, and fractional. Each of the three methods conveys the same information in different ways. American odds state your profit in relation to $100 bets, decimal odds as a direct multiplier of your bet, and fractional odds as a proportion of your potential profit. This page describes American sports betting odds, how they work, so that bettors can understand and utilize them effectively.
We'll review the basics of the odds format, explain the rest of the popular odds formats, show you how to spot underdogs and favorites, and offer some strategy advice for sharpening up your betting. Understanding sports betting odds is just as important as checking casino ratings on casinojuggler.com, where you can compare trusted platforms before placing your wagers.
What Do the + and – Signs Mean?
In American odds, one of the first things you’ll notice will be a plus or minus sign in front of a number. Positive odds indicate the amount you’ll win on a $100 bet, and negative odds indicate the amount you’ll need to wager to win $100 on a bet.
Distinguishing Between Favorites and Underdogs
Favorites and underdogs are usually indicated by a plus or minus sign in American odds beforehand, but this is not always the case. If, for example, the Dallas Cowboys are -150 to win a game on the money line, and the Arizona Cardinals are +175, then Dallas is the favorite.
Another example would be futures markets. If the Boston Bruins are -110 to win the Stanley Cup and the Vegas Golden Knights are +300, the Bruins are the favorite. Despite this, negative odds and positive odds don't necessarily tell you who the underdog and favorite is. Sometimes multiple outcomes in a bet will have negative odds or positive odds.
How American Sports Betting Odds Work
American odds are based on $100 wagers and positive or negative odds to indicate a possible profit or stake needed, respectively.
As an example, if you were betting on the Los Angeles Lakers at odds of +200, a $100 wager would pay $300: your $100 stake and $200 profit.
If you bet on the Philadelphia Flyers at -200 and spent $200, it would return $300: your $200 stake plus $100 profit. American odds represent probability and risk differently than other standard odds formats, like fractional or decimal odds.
Understanding Implied Probability
Implied probability is the percentage likelihood of an event as determined solely by the odds provided by your sportsbook or sports betting mobile apps and change depending on the bets, i.e., moneyline odds.
This knowledge allows you to compare how likely the bookies believe an outcome is and compare this likelihood with your own handicapping.
Computing Potential Payouts
It depends on whether your odds are negative or positive when you wish to work out possible returns from American odds.
You can, for example, place a bet of $50 on the Kansas City Chiefs winning the AFC West at -200, and you can work out the decimal odds by dividing 100 by the odds and adding 1 to get 1.5.
Multiply this amount by your stake of $50, and you will work out that you get a total return of $75, $25 profit, plus your $50 stake.
How do Sports Betting odds Change?
Odds change on various factors, including team form, weather, injuries, historical matchups, and player availability. You’ll notice that the odds will shorten and lengthen depending on new information and updates in the lead-up to an event. Odds will also change depending on betting volume.
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