Understanding Betting Odds: Various Types Or Formats Explained
One of the most crucial things to do before you even get started with some action on an online casino is to understand the odds. It may take some time, but it is absolutely important that you do, as it will allow you to place your bets more intelligently. The more intelligent your bets, the better your overall experience, and ultimately, the better your chances of making some money from online gambling.
Odds are an important part of a wager. You will use the odds to determine whether a wager is worth making or it is a wager best left alone. After all, you’d be calculating the potential payout of any wager based on a combination of not just your stake, but also the relevant odds. Indeed, it is this clear understanding of odds, among other things that set apart bet winners from the rest.
Who Sets Odds?
For sports betting, each sportsbook no doubt has a team of professionals with insights into the industry. These professionals assess the probability of each outcome for each game, factoring in player performance and other factors to determine the probability of a win or loss. Based on these findings, the industry experts will create odds which best reflect the likelihood of either event occurring. Against this background, it is easy to understand why different sportsbooks will have different odds on the same bets.
Odds Formats
There are three primary betting odds, namely
- Fractional odds-British
- Decimal odds-European
- Money line odds-American
It is important to understand that there is no difference in payout across these types of betting odds. Succinctly put, these are just alternate ways of presenting what is essentially the same thing.
It is likely that you will encounter each of these formats. Here is a more in-depth look at the specifics of each, so you can have a better understanding
- Fractional Odds
Also commonly known as British, or UK odds, these betting odds are quite popular among British, as well as Irish bookies. You find that these odds have a hyphen or slash to them.
Fractional odds are a ratio of the profit won to the stake. Take, for example, a 5-1 odd. This odd means you will win $ 5 against every $ 1 that you wage. Your payout, in this case, will be $ 6, that is, your winning plus your stake. In the same example, if you placed a stake of $10, it means your total potential payout would be $ 60. This is a profit of $ 50 plus the $10 stake.
- Decimal Odds
Also known as European or continental odds. These odds are more common in continental Europe, Canada, Australia, and New Zealand. You will realize that decimal odds are much easier to understand and work with.
Decimal odds essentially represent the amount you win for every $ 1 wager. As such, the number represents the payout, instead of the profit or amount won, since your stake will also be included in this number. In light of this, it is evident why these odds are much easier to work with, as you wouldn’t need to add back the stake.
Your total payout would be the decimal odds multiplied by the stake. Take, for example, a decimal odd of 1.5 that a particular team would win against the other. If you place a wager of $ 100, then your total payout should that be the outcome would be $ 150.
- Money Line Odds
These are popularly known as American or U.S odds. It’s no surprise that they are most common in the United States of America.
Money line odds for favourites are accompanied by a minus sign and essentially indicate just how much you’d need to stake in order to win $ 100. On the other hand, odds for the underdogs come with a plus sign and indicate how much money you’ve won for every $ 100 you place as stake.
Whether you are betting for the underdogs or favourites, you will get your winnings in addition to the amount you win with the odds. Negative numbers are the reserve for the favourites and indicate how much you need to put down as stake to win $ 100. On the other hand, positive numbers are reserved for the underdog and indicate just how much money you could win if you bet $ 100.
Consider this: a bookmarker places a + 300 odds for team A and -500 for team B. In this case, you will need to risk $ 100 in order to win the $ 300 if the bet is successful. In this case, your total payout will be $ 400. On the other hand, you will need to bet $ 500 in order to win the $ 100. If the bet is successful, your total payout will be $ 600.
Looking at the odds, it is easy to see the difference. The bookmarker has clearly placed a greater probability of team B winning the game. Looking at the numbers, you stand to make more money with a positive money line odd, if you are certain of the winner. If you bet on the bookie’s favourite then your chance of winning is significantly better, but you also have to contend with a lower payout.
Converting Betting Odds Format
As already mentioned, the various formats are just alternate representations of the same thing. You can easily convert one format to the other. Go online and you will find conversion tools that will no doubt help make this conversion much easier and more straightforward. Whether to use an American, British or European format boils down to preference.
Informed Betting
Placing betting without giving proper thought to it can only lead to frustrations. You will end up disappointed as you lose money, and the overall experience will not be as thrilling. Instead, understand the math behind betting odds and how to read and interpret odds so you can make a more informed decision when placing your bets. You will greatly improve your chances of making a win if you do so. Again, by all means, take up comparison shopping when looking at betting odds. Find out what different sportsbooks have to offer, compare and contrast before making the final decision on where to place your stake.
