Betting Odds Explained: A Complete Guide For Beginners

Betting odds are a crucial part of the world of gambling. They determine the likelihood of an event occurring and provide the basis for calculating potential winnings.

Understanding how do betting odds work is essential for anyone who wants to gamble responsibly and make informed decisions.

In this article, we will explore the different types of odds used in betting, how they are calculated, and how to understand betting odds & interpret them.

Whether you are a seasoned gambler or a beginner, this article will give you the knowledge you need to navigate betting odds. So let’s dive in and discover the fascinating details.

What Are Betting Odds?

Betting odds are a numerical representation of the probability of a particular outcome in sports or other betting events. They are typically presented in a format that reflects how much money you can win from a wager.

Bookmakers use two common formats to represent betting odds, namely fractions and decimals, which are widely used in the UK and Europe.

Another common format is the money line or American way, which involves a number preceded by a plus or minus sign.

These odds are used to calculate potential winnings and reflect the likelihood of a particular event occurring.

Betting odds apply to a wide range of events, including horse racing, football, TV specials, and political outcomes.

Betting Odds Explained

We’ll give you a simple example to understand how betting odds work. Suppose a football match between Team A and Team B; the odds might be presented as follows:

• Team A: 2/1
• Team B: 3/1
• Draw: 2/1

This means that if you bet £1 on Team A and they win, you would receive £2 in return, plus your original stake of £1.

If you bet £1 on Team B and they win, you would receive £3 in return, plus your original stake of £1.

Finally, if you bet £1 on a draw and the match ends in a draw, you would receive £2 in return, plus your original stake of £1.

In general, the odds reflect the probability of a particular outcome. So, if the odds for Team A are lower than for Team B, it means that Team A is considered more likely to win.

Different Types of Betting Odds

Betting odds are a way of expressing the probability of an event occurring, as well as the potential payout in case of a successful bet.

Several types of betting odds are used worldwide, but the most common ones are Decimal Odds, Fractional Odds, and American Odds.

In this text, we will explain how each type of odds is presented and how they differ from one another.

Decimal Odds

Decimal Odds, also known as European odds, are the most common type of odds used in the world, especially in Europe, Australia, and Canada.

They are presented in decimal format and represent the total payout a bettor will receive for every unit they wager.

For instance, if the odds are 2.50, a bettor will receive a total payout of 2.5 times their stake if they win the bet. The formula to calculate the total payout is simple: stake x odds = total payout.

Fractional Odds

The fractional odds are popular in the United Kingdom and Ireland. They are presented as fractions and represent the potential profit a bettor will receive for every unit they wager.

For example, if the odds are 2/1, a bettor will receive a profit of 2 units for every unit they stake if they win the bet.

The formula to calculate the total payout is a bit more complicated: (stake x numerator/denominator) + stake = total payout.

American Odds

American Odds, or Money line odds, are commonly used in the United States and Canada. They are presented as positive or negative numbers representing the potential profit or loss a bettor will receive for every 100 units they wager.

If the odds are positive, they represent the potential profit a bettor will receive for every 100 units they stake.

If the odds are negative, they represent the amount a bettor needs to stake to win 100 units.

For example, if the odds are +200, a bettor will receive a profit of 200 units for every 100 units they stake if they win the bet. If the odds are -200, a bettor must stake 200 units to win 100 units.

The formula to calculate the total payout for favourable odds is (stake x odds / 100) + stake = total payout; for unfavourable odds, it is (stake/odds x 100) + stake = total payout.

What Is Probability?

Probability refers to the likeliness of an event occurring. When a bookmaker assigns a high probability to an outcome, it means that the event is more likely to happen than not.

Conversely, if an event is assigned a low probability, it is less likely to occur than not.

In other words, the probability is a measure of the likelihood or chance of an event occurring.

It is a numerical value that ranges from 0 to 1, where 0 represents an impossible event, and 1 illustrates a specific event.

Probability is generally expressed as a fraction, decimal, or percentage.

A simple depiction will be the following. For example, if a fair six-sided die is rolled, the probability of rolling a 3 is 1/6 or approximately 0.17 or 17%. This means that out of six possible outcomes, rolling a 3 is expected to occur once on average in every six rolls.

Probability is used in many areas of life, including gambling, insurance, finance, and scientific research. It helps us understand and predict uncertain events and make informed decisions.

How to Calculate Betting Odds and Probability?

Once you’re familiar with the way odds are presented, 2 numbers separated by a forward slash, you can use them to calculate the probability of any event occurring.

To determine the probability (expressed as a percentage) from odds, a straightforward approach is substituting the two numbers presented in the odds with letters.

For instance, odds of 2/1 would be expressed as A/B. Using this formula, the calculation would be Probability (%) = B/(A+B).

Below are several examples of betting odds transformed into percentages to determine the corresponding probabilities.

Let’s take another example to clarify this section. You must understand the relationship between odds and probability to calculate probability from betting odds. The probability of an event occurring can be calculated from the odds by using the following formula:

Probability = 1 / (odds + 1)

For example, if the odds of a team winning a football match are 3.00, the probability of them winning can be calculated as:

Probability = 1 / (3.00 + 1) = 0.25 or 25%

Similarly, if the odds of a horse winning a race are 5/1, the probability of the horse winning can be calculated as:

Probability = 1 / (5/1 + 1) = 1/6 or approximately 0.1667 or 16.67%

Once you have calculated the probability, you can use it to make informed betting decisions.

If the probability of an event occurring is higher than the implied probability of the odds, it may be a good bet.

How to Read Betting Odds?

As you understand how to calculate the probability of an event, you can utilise the betting odds to determine the potential payout if you were to place a bet on it.

When searching for betting odds, fractional odds are typically the first format you will encounter. These odds will illustrate the potential profit if you bet the corresponding stake.

The number on the left side represents your potential winnings, while the number on the right represents your stake. For instance, odds of 10/1 imply that you would win £10 if you placed a £1 bet and were successful.

To interpret the best betting odds, select the event you are interested in and observe the listed odds.

These odds will be presented in fractional, decimal, or American format, and each of them will be elaborated on below by experts at SlotsCalendar. This interpretation will help also teach how to read sports betting odds.

Interpretation of Fractional Odds

Fractional odds exhibit the likelihood of an event happening through a fractional format.

This method is one of the simplest ways to determine the potential payout from a bet, and it provides a straightforward means of comprehending the probability of an event occurring.

Here are four examples of fractional bets:

• 3/1 – The bookmaker pays out £3 for every £1 bet.
• 15/2 – The bookmaker pays out £15 for every £2 bet.
• 3/5 – The bookmaker pays out £3 for every £5 bet.
• 1/1 – The bookmaker pays out £1 for every £1 bet.

The initial two wagers are categorised as “odds-against” bets, indicating that the bookmaker considers the event less likely to occur. The bookmaker is placing a bet against the event taking place, reflecting their view that it is improbable.

The third example represents an “odds-on” bet, suggesting that the bookmaker believes the event is probable.

In the case where both numbers are identical (as in the final example), this is referred to as an “evens” bet, implying a 50/50 chance of winning. In this situation, if you place a winning bet, your stake will be doubled.

From Odds to Percentage

Prior to placing a bet, a bettor might consider their potential profit and the amount of their wager to calculate the percentage return in the event of a successful bet.

To illustrate, if the odds are 3/1, the bettor stands to make a profit of 300% in addition to the return of 100% of the wagered amount. Suppose a bettor placed a bet of £10 and won; their total return would be £40 (£30 in profit plus their original bet of £10).

To convert fractional odds to percentages, use the formula (x / y) * 100, where x/y represents the fraction.

For instance, consider a bet of £10 with odds of 7/3.

(7 / 3) * 100 = 233.3%.

The profit on the bet would be £23.33 (233.3% of £10). Adding the original stake of £10 to the profit yields a total return of £33.33.

Fractional Odds to Probability: Conversion

When faced with fractional odds, it may be straightforward to determine the likelihood of an event in some cases, but in others, it may be more challenging.

Having knowledge of the likelihood of a particular outcome can be crucial for bettors who are not well-versed in a specific event.

To calculate the fixed probability of an outcome, use the formula (y / (x + y)) * 100, where x/y represents the odds, and y represents the number of favourable outcomes.

It’s essential to keep in mind that the odds presented by bookmakers are based on probability and cannot be a guarantee that a particular event will occur.

Interpretation of Decimal Odds

Decimal odds are another popular format used by bettors to display the odds of an event. They are presented in decimal form and are often preferred for their simplicity in providing a quick view of the probability of an event.

Decimal odds offer the added advantage of making it easier for bettors to compare odds without requiring complex mathematical calculations.

They also provide a quick estimate of potential winnings, with higher numbers indicating higher potential profits.

In order to calculate potential winnings from decimal odds, you simply need to multiply the odds by the stake amount. Here are some examples:

• Odds of 5.00: A £1 bet would result in a £5 win
• Odds of 5.00: A £5 bet would result in a £25 win
• Odds of 2.00: A £3 bet would result in a £6 win, which is equivalent to an evens bet of 1/1.

From Decimal Odds to Percentage

To determine the winning percentage when using decimal odds, you can multiply the decimal odds by 100. For instance, 1.20 would be 120%.

It is important to note that this percentage represents the amount wagered and not the profit.

For example, if a bettor wagers £10 with the odds of 1.20:

1.20 * 100 = 120%

£10 * 120% = £12,

If the bet is successful, the bettor will win back 120% of their original wager, resulting in a total return of £12.

Decimal Odds to Probability: Conversion

To determine the probability associated with decimal odds, it is necessary to consider the value of the decimal. If the odds are 2.00, then the probability of winning is 50%.

When the odds are greater than 2.00, the probability of winning is less than 50%, and when the odds are less than 2.00, the probability of winning is greater than 50%.

You can convert decimal odds to probability by using the formula 100/odds. For instance, if the decimal odds for a team to win are 6.00, the probability of them winning can be calculated as 100/6, which is approximately 16.7%.

It is important to keep in mind that the odds presented by bookmakers are based on probabilities and should never be viewed as a certainty that a particular event will occur.

Interpretation of American Money Line Odds

American odds, also known as money line or US odds, are commonly used in the United States and are not frequently used by bookmakers in the United Kingdom.

They can be confusing initially compared to fractional or decimal odds, but once understood, they are straightforward.

American odds are presented with either a positive or negative number, indicating the potential profit or the amount you need to bet to earn a profit.

If the number is positive, it represents the potential profit for a £100 wager on the underdog. On the other hand, if the number is negative, it indicates the amount you need to wager to make a £100 profit on the favourite.

For example, here’s how to read American betting odds:

• +250: Bet £100, win £250, the total payout of £350 (including original wager)
• +250: Bet £10, win £25, the total payout of £35 (including original wager)
• -125: Bet £125, win £25, the total payout of £150 (including original wager, but the negative profit of £100)
• -125: Bet £10, win £2, the total payout of £12 (including original wager, but the negative profit of £8)

American Odds Percentages

In order to convert US Odds to percentages, you’ll have to follow the next rules.

Underdogs

For underdogs with positive US odds, the odds represent the profit, so the percentage of return is equal to the odds plus 100% of the wager. This can be used to calculate the total payout if you win.

For example, if the odds are +250, this is equal to a return of 250% if you bet £100. This means that if your bet is successful, you would profit £250 plus your initial bet of £100, for a total return of £350 or 350%.

The formula to calculate the total payout for underdogs with positive US odds is:

Total Payout = Wager * (Odds/100 + 1)

Favourites

When dealing with favourite odds in American format, you can use the formula 100 – (10000 / +odds) to convert them into percentages. This percentage represents the profit of a successful bet.

For instance, if a bettor places a £100 bet with odds of -125, the calculation would be 100 – (10000 / +125) = 20. This means that if the bet is successful, the bettor will receive a profit of 20% of their original wager, which amounts to £20.

However, if the bet is unsuccessful, they will suffer a loss of £80.

American Odds to Probability: Conversion

To determine the win probability of an underdog in American odds, you can use the same approach as with fractional odds.

For instance, consider the odds of +250 with a £100 wager. Divide the odds by 100 and apply the formula (y / (x + y)) * 100, where the odds are x/y.

• (1 / (2.5 + 1)) * 100
• (1 / 3.5) * 100
• 0.2857 * 100
• The win probability is 28.57%.

For calculating the probability from a favourite’s American odds, the same formula can be used as for fractional odds. However, to convert the odds into a percentage, the final number needs to be subtracted from 100.

For example, if the odds are -125 and the bettor wagers £100, then the odds become -125/100.

• To calculate the probability: y / (x + y) * 100, where x is the odds and y is 100.
• Substituting the values: (100 / (125 + 100)) * 100 = 44.44%
• Subtracting this result from 100: 100 – 44.44 = 55.56%
• Therefore, the win probability is 55.56%.

Extra: Football Betting Odds Explained

With matches frequently occurring all year round, it’s no surprise that football is a favoured sport for bettors to place their wagers on.

Leading betting sites offer a plethora of betting markets, allowing punters to bet on various options.

Identifying the best football betting odds is imperative for those seeking to receive the most value for their investment, given the potential value associated with certain selections. This is why football betting is highly sought-after among punters.

There are discrepancies in the availability of betting markets among bookmakers, with some providing less depth than others.

Consequently, the value derived from betting is often greater when using a site with a broader range of markets.

Here are some of the most frequently placed football bets available on most top bookmakers:

• Match Bets: The most commonly placed wager in football is a Match Bet, whereby you predict the outcome of a specific game.

However, different bookmakers may offer varying odds for each selection, necessitating exploring the betting odds provided by multiple betting sites to identify potential value.

• Bet Builder Bets: The Bet Builder feature is highly favoured among bettors, enabling them to amalgamate several selections into a solitary wager on the same event. Consequently, odds can hold potential value, explaining its immense popularity.
• Player/Team Props: It is a recent addition to the betting world and isn’t offered by all bookmakers due to its limited coverage.

This type of betting market is categorised as statistical-based, where wagers are placed on a player’s or team’s performance during a match.

As different bookmakers may offer varying lines and odds on prop markets, it presents a potential avenue for punters to find value.

• Accumulators: Punters frequently place football accumulators intending to win a substantial sum of money, making it a popular wagering option.

Several leading betting sites offer accumulator boosts that provide punters with a bonus amount added to the potential returns of the bet, making them an attractive option.

• In-Play/Live Betting: It presents an opportunity for punters to obtain value for their investment, particularly if they have accounts with several betting sites.

Given the rapid nature of football matches, scenarios can change frequently, and bookmakers may not consistently price betting markets at the same odds. As a result, bettors can capitalise on these fluctuations if they act promptly.

In Summary

To summarise, betting odds are an essential tool for gamblers. Understanding and interpreting them can give you the advantage of making the correct wager.

While many different betting odds are available, it’s best to stick with one that’s logical and easy to understand.

Additionally, knowing how odds work and translating them into probabilities is key to making informed decisions when it comes to gambling.

Most importantly, always remember to gamble responsibly. So if you’re a beginner interested in learning this crucial part of gambling, taking the time to understand more about betting odds could prove quite advantageous.

With nuanced understanding and practice, your knowledge of betting odds will grow; before too long, you may just find yourself skillfully navigating through the world of sports betting like a seasoned pro. Play safe and play smart – good luck!