How do Betting Odds Work?

While the popular games and social acceptability of gambling have varied over the years, one thing has remained the same: odds make or break your gambling session, and if you want to maximise your chances of winning, you must pick games with the best player odds.

We have put together this primer on sports betting odds to explain what they are, how they work, and which bet types have the potential for the biggest wins.

What are betting odds?

Sports betting odds consist of two things. First, they are specific to the event or game in question and are set by ‘oddsmakers’ before the event goes live. The expected margin of defeat or victory is known as a ‘betting line’ and includes probabilities on either team winning or losing. The odds will vary depending on which team the oddsmakers believe will win. These odds will be higher (with better returns) for the underdog, and lower (with lower returns) for the favourite team.

The second element of sports betting odds is your wager amount. Bettors will use betting odds to determine how much money they must wager to reach a certain profit. There are three sports betting formats – American, fractional, and decimal. We will go over each of these in more detail below.

How are betting odds calculated?

Odds are calculated by considering the amount the bookie or casino will need to pay out versus the money bettors have wagered. The goal is to keep both sides as equal as possible. This allows the sportsbook to avoid losing a lot of money while also ensuring that everyone who bets and wins receives the payout to which they are entitled. This is one reason why the odds sometimes shift significantly before the event in question begins. As players bet more money, sportsbooks and bookies will adjust odds to compensate.

Decimal betting odds format

Decimal betting odds are calculated using a £1 wager. The odds represent the amount bettors win for every £1 they wager. Odds of 4.0 will return £4 total – the original £1 wager, and a £3 profit. A £1 wager on odds of 1.75 would return £1.75 back to the player – the £1 wager plus £0.75 in profits.

Decimal odds are a popular betting odds format because it is easy to understand how much money bettors stand to win back with every £1 they wager.

Fractional betting odds format

The second betting odds format is fractional odds. These odds are displayed as fractions which, when multiplied by the wager, reveal how much profit bettors stand to collect. A £1 bet at 2/1 odds, for example, pays out £3 total – the initial £1 and £2 in profit. Odds of 1/2, on the other hand, indicate that you will profit half of what you wager. A £10 bet on 1/2 odds will award £15 – a £5 profit and your £10 stake returned.

American betting odds format

American betting odds are calculated using a £100 wager but are different depending on the expected outcome. A bet which is favoured to win, for example, will have a minus sign before the number, which represents negative odds. A bet which is not expected to win, on the other hand, will have a plus sign in front of the number, which represents positive odds.

Negative odds mean bettors must wager a certain amount to profit by £100. If the betting odds are -175, for example, bettors will need to wager at least £175 to profit by £100. The inverse is also true. Positive betting odds mean that bettors will need to wager at least £100 to profit by a specific amount. Odds of +150, for example, mean that bettors must risk £100 in order to profit £150.

What is the easiest betting odds format to use?

The most prevalent type of betting odds in the world is decimal odds. The reason for its rise in popularity is clear: it is an easy system to use. Maths can make anything seem more confusing than it needs to be, but decimal betting odds are more intuitive than other systems. They are also much easier to convert to probabilities.

What does 'best odds guaranteed’ mean?

At some bookmakers, you might run across a promotion referencing ‘best odds guaranteed’. This is mostly applied to greyhound and horse racing but is sometimes applied in other sports. A best odds guaranteed promotion ensures that when bettors take a fixed odds price or an early price, they will receive the biggest odds if the starting price is greater.

For example, let’s say that you are betting on a dog named Rudolph, and on the morning of the race, you place a bet at 6/1 odds. By the time the race starts, however, the odds have shifted to 10/1. Instead of being paid out at 6/1, a best odds guaranteed bet will pay you out at 10/1 regardless of the initial odds.

In which sports will you find the longest betting odds?

Long betting odds can take place in a wide variety of sports, but some sports are more prone to them than others. Baseball and American football boast some of the longest odds in recent history. The 2011 match-up between the Atlanta Braves and the St. Louis Cardinals delivered a 999-1 victory, for example. The 2007 football game between Stanford and USC saw USC – a favourite by 39 points – lose to Stanford, the clear underdog of the match.

What bet types give you bigger odds?

In general, betting on underdogs is a good way to secure big odds. A -200 bet, for example, stands to pay a profit of £100 on a £200 bet. A +175 bet, on the other hand, will return £175 for every winning £100 bet. This information is based on a moneyline bet.

Moneyline bets are simple to understand. You bet on the team or athlete you think will win. If you are right, you profit! If you are wrong, you lose your money.

Are you ready to dive into the world of sports betting? Keep our explanations in mind as you consider making your first bets, and make sure to bet only with reputable and experienced sportsbooks, like LeoVegas, that will keep your money safe.