Alright folks, if you’re gonna bet like a pro, you gotta understand odds. It’s basically the language of gambling, and if you can’t read it, you’re flying blind. Let’s break it down.
Popular in Europe and Canada, decimal odds are super easy to understand.
The higher the decimal odds, the less likely the event is to occur, but the bigger the payout.
The lower the probability, the higher the potential payout.
American Odds (Positive):
Potential Payout = (Stake x Odds) / 100
Example: Bet $100 on +200 = (100 x 200) / 100 = $200 profit ($300 total payout).
American Odds (Negative):
Potential Payout = (Stake / Absolute Value of Odds) x 100
Example: Bet $100 on -150 = (100 / 150) x 100 = $66.67 profit ($166.67 total payout).
Decimal Odds:
Potential Payout = Stake x Decimal Odds
Example: Bet $100 on 2.50 = 100 x 2.50 = $250 total payout ($150 profit).
Fractional Odds:
Potential Payout = (Stake x Numerator) / Denominator
Example: Bet $100 on 5/1 = (100 x 5) / 1 = $500 profit ($600 total payout).
If you don’t understand how odds work, you’re just throwing money away. Knowing how to read them, calculating implied probabilities, and understanding the vig all help you make smarter bets.
Any other bettors here prefer fractional or decimal odds over the classic American style? And how do you factor in the vig when deciding where to place your bets? Drop your thoughts!
What Are Betting Odds?
Odds represent the likelihood of an event happening and are used to determine how much money you can win from a bet. They come in different formats depending on where you’re betting:- American Odds (Moneyline Odds) - Mainly used in the US.
- Fractional Odds - Popular in the UK and Ireland.
- Decimal Odds - Common in Europe, Australia, and Canada.
American Odds: The Basics
American odds use plus (+) and minus (-) signs.- Minus Sign (-): The favorite. It shows how much you need to bet to win $100. For example, -150 means you need to bet $150 to win $100.
- Plus Sign (+): The underdog. It shows how much you can win if you bet $100. For example, +200 means a $100 bet gets you $200 profit.
Fractional Odds: The Classic Approach
Seen mostly in the UK, fractional odds look like 5/1 or 7/2.- 5/1 means for every $1 you bet, you win $5, giving a total payout of $6.
- 7/2 means for every $2 you bet, you win $7, which means a total payout of $9.
Decimal Odds: The Straightforward Format
Popular in Europe and Canada, decimal odds are super easy to understand.
- If the odds are 2.50, a $100 bet gives you a total payout of $250 ($100 x 2.50).
- The profit you make would be $250 - $100 = $150.
The higher the decimal odds, the less likely the event is to occur, but the bigger the payout.
Implied Probability: Making Sense of Odds
Odds can be converted to implied probability — basically how likely a bookie thinks an event will happen.- Implied Probability = (1 / Decimal Odds) x 100
- For example, if the odds are 4.00, the implied probability is (1 / 4.00) x 100 = 25%.
The lower the probability, the higher the potential payout.
What’s Vig (Juice) & Hold?
- Vig (Juice): The cut sportsbooks take to ensure a profit. It’s usually built into the odds. If you see odds of -110 instead of -100 on a balanced bet, that’s the vig in action.
- Hold: The percentage of total money wagered that the sportsbook keeps as profit. If they take in $100,000 in bets but only pay out $90,000, their hold is 10%.
Types of Bets & Odds Formats
- Moneyline Bets: Picking a winner with odds represented as positive or negative numbers.
- Spread Bets: Betting on a margin of victory (especially in football and basketball).
- Over/Under Bets: Wagering on whether a total (like points or goals) will be higher or lower than a specified amount.
- Parlay Bets: Combining multiple bets for a bigger payout but higher risk.
- Futures Bets: Betting on events that will happen in the future, like a championship winner.
- Teasers: Adjusting point spreads or totals in your favor for a reduced payout.
How to Calculate Payouts
Depending on the odds format, the formula changes.American Odds (Positive):
Potential Payout = (Stake x Odds) / 100
Example: Bet $100 on +200 = (100 x 200) / 100 = $200 profit ($300 total payout).
American Odds (Negative):
Potential Payout = (Stake / Absolute Value of Odds) x 100
Example: Bet $100 on -150 = (100 / 150) x 100 = $66.67 profit ($166.67 total payout).
Decimal Odds:
Potential Payout = Stake x Decimal Odds
Example: Bet $100 on 2.50 = 100 x 2.50 = $250 total payout ($150 profit).
Fractional Odds:
Potential Payout = (Stake x Numerator) / Denominator
Example: Bet $100 on 5/1 = (100 x 5) / 1 = $500 profit ($600 total payout).
Why Understanding Odds Matters
If you don’t understand how odds work, you’re just throwing money away. Knowing how to read them, calculating implied probabilities, and understanding the vig all help you make smarter bets.
Any other bettors here prefer fractional or decimal odds over the classic American style? And how do you factor in the vig when deciding where to place your bets? Drop your thoughts!