All of the numbers and odds figures might be a little overwhelming if you’re new to sports betting. This sports betting tutorial will explain how do sports odds work. We will discuss why the sports’ odds seem the way they do and what they mean.
You must understand the odds to truly understand sports betting. Sports betting odds are an important aspect of any sports wager. In addition, they are used to judge whether or not a wager is worthwhile. A combination of the appropriate odds and your investment determines the possible payment of every wager you place.
The bookmakers usually provide the odds on which the betters or gamblers put their wagers. To balance their risk, bookies usually make sure that there are enough bets on all of the game’s possible outcomes. The bookmakers earn by taking a portion of the bets as premium or “juice”.
What Are Sports Betting Odds?
In terms of sports betting, odds serve two functions. For starters, they are used to figure out just how much successful bets payout.
What do betting odds mean in sports betting?
When you place a wager with a bookmaker, you’ll be given odds at the time. These odds determine how much money you can win. The greater they are, the more you have a chance of winning with your bet.
Second, odds show the probability of a specific result occurring. When it comes to betting odds mean, the lower the odds are, the more likely a result is. This makes sense since you should expect to gain less when betting on a likely event than when betting on an unusual one. Together, let’s see how sports odds work.
Consider a tennis match in which the world’s number one player takes on the world’s number 137th player. It is reasonable to assume that the world’s best player will have a better probability of winning than his opponent. As a result, betting on him to win has very low chances. On the other hand, betting on his opponent to win has considerably greater odds.
This is a simplistic explanation, but it provides you with a good sense of how odds play a part in sports betting.
Different Odds Formats
There are various ways to present sports betting odds, the most popular ones are:
- American odds
- Decimal odds
- Fractional odds
- Point spreads
- Over/Under
Each of these forms is likely to appear at some time in your career as a punter. As a result, getting to know each one is beneficial. These odds all function in much the same way. They’re merely different ways of reporting the true odds for a certain bet, but how do sports betting odds work?
How do sports odds work?
Online sportsbooks betting in Singapore show odds differently depending on the sport and area you’re betting on. Therefore, it’s critical to understand how odds operate and how to interpret sports betting lines.
There are betting odds calculators available online. They are completely free to use and display several sorts of odds. However, with enough practice and the resources provided below, you’ll soon be converting odds calculations in your brain like a pro.
How to read sports betting odds?
There are three distinct ways to display odds for sports betting. Despite its various representations, our examples below all have the same probability of winning (33.33 percent) and will return $2 for every $1 invested successfully.
Moneyline/American Odds = +200
Fractional/UK Odds = 2/1
Decimal/European Odds = 3.00
American Odds: How do sports odds work?
Moneyline odds, often known as American odds, are the most widely utilized format in the United States. They might take the form of a positive or negative number.
What do plus and minus mean in betting?
A positive number (+) indicates how much a $100 accurate wager would earn. Whereas, a negative number (-) indicates how much you would have to stake to win $100.
So, whenever you see the odds are at +150, you’d know that a $100 wager would yield $150 in wins, plus the $100 cost. When you see “-150”, you will know that you will need to wager $150 for you to win $100 in addition to the $150 you put in. An even-money wager, where you have a chance of winning the same amount you bet, is written as +100.
How to calculate the payouts from American Odds?
Using Positive Moneyline Odds to Calculate Payouts
You can calculate the potential profit of a stake with positive moneyline odds using this simple method.
Stake x (Odds/100) = Potential Profit
Profit + Stake = Total Potential Payout
When calculating your total payment, you must factor in the fact that you will get your bet back if you win. Let’s see how do sports odds work on positive moneyline odds.
For example, you have a $10 stake at +120 moneyline odds.
Stake x (Odds/100) = Potential Profit
$10x(120/100) = Potential profit
$10×1.2 = $12
Profit + Stake = Total Potential Payout
$12+$10 = $22
Therefore, your potential profit on your $10 stake is $12. You can expect that your total potential payout will be $22.
Using Negative Moneyline Odds to Calculate Payouts
A separate equation is needed to determine the potential profit of a stake with negative moneyline odds. Please keep in mind that we ignored the odds’ negative sign in this computation.
Stake / (Odds/100) = Potential Profit
Profit + Stake = Total Potential Payout
When calculating your total payout, your stake will be increased by one more. Let’s see how sports odds work on negative moneyline odds.
For example, you have a $15 stake at -150 moneyline odds.
Stake/(Odds/100) = Potential Profit
$15/(150/100) = Potential Profit
$15/1.5 = $10
Profit + Stake = Total Potential Payout
$10 + $15= $25
Therefore, your potential profit on your $15 stake is $10. You can expect that your total potential payout will be $25.
Decimal Odds: How do sports betting odds work?
Traditionally, decimal odds were connected with continental Europe, Canada, and Australia. Except for a few US betting sites, they have now generally become the standard at most online bookies. This is because they are the simplest of the three forms. Decimal odds require just a single positive integer to be stated to two decimal places. Together, let’s see how do sports odds work on decimal odds.
The number represents the entire payoff, which includes the initial stake per unit staked. A successful bet at 1.5, for example, would reward $1.50 for every $1 wagered. For every $1 risked, a winning bet at 2.25 would earn $2.25. A 2.00 bet is an even-money wager.
How to calculate the payouts from decimal odds?
To calculate the possible profit and total payoff of a wager using decimal odds, perform the following two computations.
Stake x (Odds -1) = Potential Profit
Wager x Odds = Total Potential Payout
The example below demonstrates how these computations operate.
Let’s say you have a $30 stake at 2.5 decimal odds.
Stake x (Odds -1) = Potential Profit
$30 x (2.5 – 1) = Potential Profit
$30 x 1.5 = Potential Profit
$45 = Potential Profit
Wager x Odds = Total Potential Payout
$30 x 2.5 = Total Potential Payout
$75 = Total Potential Payout
Therefore, your potential profit on your $30 stake is $45. You can expect that your total potential payout will be $75.
Fractional Odds: How do sports odds work?
In the United Kingdom, fractional odds are the standard format, even though decimal odds are gradually taking over. Calculating future earnings and dividends using this method might be difficult at first. However, the core premise isn’t as sophisticated as it appears. Together, let,s see how do sports odds work on fractional odds.
Fractional odds, like moneyline odds, illustrate how much profit you can make. In this case, you must add your initial investment to the total possible payment. So, you can determine your entire potential payout.
These chances are shown as a fraction, as the name implies. 3/1, which means “three to one,” is a basic example. 5/1, for example, means “five to one,” and so on.
Therefore, you can win three units for every unit staked if you play 3/1. Whereas, five units for every one unit invested if you play 5/1. Even money is 1/1, which means you may win one unit for every unit risked. So far, as you can see, this has been rather simple.
How do fractional odds work?
Because this format contains instances like 6/4, 11/10, and 5/2, things get a little more tricky. As a result, the math needed isn’t always straightforward. When you play 6/4, you can win six units for every four units wagered, or 1.5 units for every unit wagered. Moreover, you may win eleven units for every ten units wagered using 11/10, or 1.1 units per unit wagered.
When the first number is bigger than the second, it will be “odds against”. This is similar to positive moneyline odds in that the possible profit is more than the staked amount. On the other hand, things become considerably more difficult when we include the “odds on” odds. In this case, the possible profit is less than the amount placed, making these the equivalent of negative moneyline odds.
A good example of odds on is 1/4, read as “four to one on”. “Seven to four on” is 4/7, and so on. In this case, you can win one unit for every four units staked if you play at 1/4 odds. Moreover, you can win four units for every seven units if you play at 4/7 fractional odds.
How to calculate the payouts from fractional odds?
To calculate the possible profit of a bet using fractional odds, use the following equation:
x= the first number in the fraction.
y = the second number in the fraction.
Potential Profit = Stake x (x/y)
Total Potential Payout = Stake + Potential Profit
Let’s say you have a $10 stake at 5/2 fractional odds.
Stake x (x/y) = Potential Profit
$10 x (5/2) = Potential Profit
$10 x 2.5 = Potential Profit
$25 = Potential Profit
Potential Profit + Stake = Total Potential Payout
$25 + $10 = Total Potential Payout
$35 = Total Potential Payout
Therefore, your potential profit on your $10 stake is $25. You can expect that your total potential payout will be $35.
Comparing Odds Formats: What does it mean in sports betting?
It’s not unusual for the same odds to surface again regarding several games or events. This is because the difference in skill levels between the teams/competitors can only be so high before competition becomes completely unfair.
In 2022, the majority of sportsbooks betting in Singapore will allow you to switch between different odds on their markets. However, converting between moneyline/American odds and decimal odds can be a little more difficult. This is because moneylines may be both positive and negative.
There are several really simple calculations you can conduct if you ever need to convert odds from one format to another.
Simply divide the moneyline odds by 100 and then add 1 to convert positive American odds to decimal odds. Divide 100 by the negative moneyline odds and add one to convert negative American odds to decimal odds.
Converting Positive American Odds to Decimal Odds
Decimal Odds = (American Odds/100) + 1
For example, you are presented with +240 American odds.
(American Odds/100) + 1 = Decimal Odds
(240/100) + 1 = Decimal Odds
2.4 + 1 = 3.4
Converting Negative American Odds to Decimal Odds
Decimal Odds = (100/American Odds) + 1
For example, you are presented with -350 American odds.
(100/American Odds) + 1 = Decimal Odds
(100/350) + 1 = Decimal Odds
0.28 + 1 = 1.28
How do sports odds work in over/under bets?
The over-under is another method by which sports betting odds are presented. Again, this form of wager can only be made if the game’s results are kept track of.
In these situations, the punter can wager on the total number of points scored by both sides, regardless of whether one team scores more. For example, in a basketball game, over 150 bets might win if both teams together score more than 150 baskets or points. Similarly, in football, an under-4 bet may be won if both competing sides fail to score at least four goals.
Aside from these major sports betting odds, punters can wager on individual game phases, such as:
- At what point in the game will a player score how many points?
- How many goals will someone score in a soccer match?
- The total number of free throws in a basketball game.
- How many yards a quarterback will throw in a football game?
Point Spreads: What Does it Mean in Sports Betting?
Sports betting may be done on a variety of different games. When a game incorporates points, the gambler can wager on who or which team will win. In addition, he can also wager on how many points they will win. Together, let’s see how sports odds work on point spreads.
Point spreads are bets on the outcome of a game. Whereas the bookmaker expressed the point spread odds as a plus or negative number.
Let’s say the odds for a game are +9. This means that the punter is betting on the underdog losing by at least 9 points. In the same way, a -9 point spread indicates that the favorite is anticipated to win by at least 9 points.
A punter who bets on +9 odds wins. Even if his favorite team loses, as long as they lose by fewer than 9 points. However, a punter who bets on -9 odds and bets on the favorite to win by at least 9 points loses if the winning side wins by less than 9 points.
