How do sports betting odds work?
Betting odds have always been in the headlines, and now they have started to be popularized in electronic applications as well, as the presence of mobile betting grows. Some betting odds formats are different depending on the country or sport, and it is important that these betting odds are explained so that the best way to maximize the money is understood.
But before you place your next bet, it’s important to understand how betting odds work and how to read them whether you’re betting online or in person. The post answers the questions below that will help you get there.
How to read sports betting odds
Betting odds can be displayed in three distinct formats – American, Decimal, and Fractional – and they report a probability of the game or teams they are connected to and how much an individual could win by selecting those odds.
For US odds, which are the default options for US sports betting according to Action Network, there is a “+” or “-” symbol in front of a three-digit number. For decimal odds, there is a number rounded to two decimal places, such as the New York Yankees (5.40), which determines how much you bet is multiplied by to determine payouts. And for fractional odds, which are perhaps most commonly seen in horse racing, the numerator details the number of times the accountant expects the outcome to fail while the denominator illustrates the number of times ‘he expects the outcome to be successful. If there is an 8/5 odds for a race for horse A against horse B, that means the horse should lose eight of the 13 results while winning the other five.
What do the + and – mean in sports betting?
With bets, they can be placed either on the favorite, known as the team that should win, or the underdog, which is the team that is expected to lose. The “+” sign in front of a number – for example, +350 – means that a bet has been placed on the underdog, and the three digits following this sign indicate the amount paid if the bet wins and the bettor had wagered $ 100.
The “-” sign before a number indicates that a bet has been placed on the favorite, and the next three digits, similar to the underdog bets, indicate how much someone would win if they wagered $ 100.
How do bookmakers create odds?
The important factor to remember about bookmakers and the odds they create is that everything happens with the central aim of making a profit. If all the possible bets that people could bet on are covered, the hope would be that the pounds would eventually balance out between who won and who lost their bets. The odds are also heavily influenced by statistical and analytical research, given past results given certain adversaries and situations.
How to calculate odds betting payouts
For American odds, since the results are calculated on the basis of a bet of $ 100. If, for example, the New York Giants are favored in their clash against the Philadelphia Eagles with a line of -120 and someone bets $ 24, their payout is calculated when the 24 is multiplied by the base bet of $ 100, then divided by 120 This payment would be $ 20.
In betting for the underdog, however, the fraction is turned. If the Giants were underdogs against the Eagles, with the +120 line, that 120 would be multiplied by 24 and divided by 100, which would result in a payout of $ 28.80.
The method of calculating payouts for decimal and fractional odds is slightly different, however. If, given the Yankees example above, $ 50 is wagered on odds of 5.40 and the bet wins, those two numbers multiplied together minus the original stake payout determines the winnings. In this example, that total is $ 220.
And for fractional odds, these wins are calculated by taking the amount wagered and multiplying it by the fraction. If $ 25 were wagered for the horse racing example, the total winnings would be $ 40.