Betting Odds Explained: Your Guide To Understanding Odds

• What Are Betting Odds?
• How To Read Betting Odds
• Decimal Odds
• Moneyline / American Odds
• Which Style Of Odds Is The Best?
• Where Can I Use Betting Odds?
• True Odds Vs Implied Odds
• How to Use Bettings Odds to Calculate Probability
• Betting Odds Summary

Odds are the bread and butter of betting, and a more detailed understanding of them will almost certainly help aid you on your journey.

It can perhaps be confusing to keep up with betting odds seeing as bookmakers will offer different prices for sporting events and represent them in different ways - most in the UK use fractional, whereas decimals are often preferred elsewhere, with American odds - or moneyline - popular in the US.

Let’s take a look at betting odds in more detail to clear up any uncertainties you may have about them before you learn how to bet effectively.

What Are Betting Odds?

Betting odds represent the probability of a certain event or outcome happening and describe the amount of money you’ll win should it happen. For example, if Team A’s odds to win are 5/1, then for every £1 you bet, you’ll win £5.

Odds quickly tell a punter about the likelihood that something will happen. The more likely an outcome is, the shorter the odds will be. Longer odds can offer lucrative payouts (think of the fans who bet on a Leicester City title win in 2016) but the sheer rarity of long odds successes can make them undesirable to most bettors.

Modern sports betting has grown to accommodate several markets, from the most popular sports like football and rugby all the way to more emerging markets of esports and other popular video games.

How To Read Betting Odds

Odds are represented as decimals (for example, 5/1 odds would be 6.00) in most countries, however in the UK they are often displayed via fractions. Another form of odds representation are American or ‘sportsbook’ odds, where you’ll find a plus or minus symbol in front of the number (for example, +200 or minus -100).

Other examples of fractional betting odds are:

• 5/2 - £5 profit for every £2 staked by the player
• 3/11 - £3 profit for every £11 staked

Odds with the smaller number on the left-hand side are referred to as ‘odds-on’ bets, whilst those with the inverse represent odds against.

It doesn’t take a long time to understand odds from a glance, and you’ll gather more confidence the more you view them. Soon, you’ll be able to make intelligent bets based on odds and probability alone as well as being able to spot a worthwhile bet from a risky one.

Decimal Odds

Decimal odds may look daunting if all you’re used to is fractional, but all you need to remember is that they tell you the potential winnings included with the stake.

If Team B’s chances of winning are 3.00 odds, then a £1 bet will return £3 - with a £2 profit from your original stake.

Moneyline / American Odds

Moneyline, or American odds, are often the source of confusion as new bettors rarely see them within the UK but are widely used in the US and Canada.

Moneyline odds show the potential profits from a bet. For example, if Team A had odds of +150 (meaning they’re the underdogs), then the punter will win £15 for every £10 bet. If the stake at hand was £10, then the total payout would be £25.

A minus sign in front of the number, for example -150, denotes that Team A is expected to win. A £15 bet would deliver a £10 payout, a reversal of the + odds.

Which Style Of Odds Is The Best?

There is no monetary advantage to one form of odds than another. However, it’s best if you stick with the format you know best to avoid any mistakes or oversights.

Intelligent betting is all about confidence and knowledge. To get the most ‘bang for your buck’ out of your bets, stick to the odds you know best.

Where Can I Use Betting Odds?

The most common betting markets take place in sports like football, American football, boxing, horse racing, and basketball.

It makes sense to bet on sports you’re very familiar with as you’ll be able to make more educated guesses on winners, losers, and those who draw.

Though sports are by far the most popular avenue for bettors, the truth is you can bet on just about everything. Political races and TV competitions also attract bettors, so you’re certainly not limited to sport.

True Odds Vs Implied Odds

A key thing to remember about a bookmaker’s betting odds is that they have to consider their margins. Therefore, their odds for a certain outcome happening will not reflect the true probability.

Different bookmakers have different margins, and this is why you’ll find a variety of odds for the same event. Some are favourable, some not so much, and finding solid betting odds is a matter of research.

How to Use Bettings Odds to Calculate Probability

Calculating probability from betting odds may sound complicated, but all you need to do is follow a simple formula.

If we represent fractional odds as A/B (instead, for example, as 5/2) we can use this sum to calculate probability.

Probability = B / (A+B)

Our 5/2 example therefore becomes 5 / (5+2), which equals a 0.70 (or 70%) probability that the event will happen.

4/1 odds become 1/(4+1), which equals 0.20, a 20% probability, and so on. With enough experience, you’ll be able to judge how favourable the odds are for an event and how much money can be made with them.

Betting Odds Summary

Betting odds detail the likelihood of an event occurring and tell the punter how much money they will make should it be successful.

Fractional, decimal, and moneyline odds are all often used by bookmakers and, although there’s no innate advantage of any of them, it’s advisable to stick with the ones you’re most familiar with to avoid any mistakes.

It’s possible to gauge probability from betting odds, and understanding the method behind what odds are and how they work is useful knowledge for betting fans.