What are Betting Odds? The Easiest Guide for Beginners

Introduction

If you have ever seen sport betting websites, the betting odds with multiple numbers must get your attention. You may also find there are several different types of betting odds, wondering where they come from and how them connected with your team’s performance and your money.

This article is a general introduction of betting odds, and it’s for whoever needs a start-up guide on sports betting odds. We will explain the main terms, determining methods, and the differences among multiple odds. We will help you learn to read sport odds, calculate the winning chance, and the most important one, assess the possibilities of making money in simple words.

Let’s bet on air and cric’t!

What are Betting Odds and Probabilities?

Basically, sport betting odds convey the chance of getting a certain result in a match. Probabilities then show us estimation of matches in specific numbers.

For example, if you are going to bet on your favourite cricket team in a certain match, the probability will reveal how possible for this team to win based on stats, ranking, or other conditions. And the sport odds will specify how much money you might win from your bet.

What Do Different Types of Sport Betting Odds Mean?

There are 3 different systems of indicating sport betting odds:

1.Decimal odds (ex. 3.50)

Decimal odds (aka “European” odds, “digital” odds, or “continental” odds) are popular in continental Europe, Australia, New Zealand, and Canada. These are a bit easier to work with and understand. 

For decimal odds, the number represents the total payout, rather than the profit. In other words, your stake is already included in the decimal number (no need to add back your stake), which makes its total payout calculation easier.

The total (potential) return on a stake can be calculated as:

Total Payout = Stake x Decimal Odds

The decimal odds number represents the amount one wins for every ₹1 wagered.

2.Fractional odds (ex. 5/2)

Fractional odds (aka “British” odds, “U.K.” odds, or “traditional” odds) are popular among British and Irish bookies. They are typically written with a slash (/) or hyphen (-) and are used by some of the world’s largest bookmakers.

You can calculate like this:

Total Payout = (A+B) x (stake/B)

A fractional listing of 7/1 (seven-to-one) odds would mean that you win ₹7 against every ₹1 you wager, in addition to receiving your dollar back. In other words, this is the ratio of the amount (profit) won to the initial bet, which means that you will receive your original stake (₹1) and the profit (₹7), resulting in a total payout of ₹8. Therefore, if you stake ₹100 at 7/1 and win, you get a total payout of ₹800 (₹700 profit + ₹100 stake).

Fractional odds are the ratio of the amount (profit) won to the stake.

3.American odds (ex. +150, -280)

American odds (aka “Money line” odds or “U.S.” odds) are popular in the United States. The odds for favourites are accompanied by a minus (-) sign and indicate the amount you need to stake to win ₹100. The odds for underdogs, on the other hand, are accompanied by a positive (+) sign and indicate the amount won for every ₹100 staked.

In both cases, winners get their initial wager back in addition to the amount won.

The formulas to calculate profit with American odds will differ depending on the sign before the number, and we can explain this with an example:

Team A:+375

Team B:-680

The bookmaker has offered odds of +585 for Team A, which indicates that the bookmaker has placed a much lower probability (about 15%) that Team A will win the game. You need to risk ₹100 on Team A to make a potential win of ₹585. If Team A can pull off the upset, you get back your initial stake of ₹100 in addition to the ₹585 won, giving you a total payout of ₹685.

If you decide to bet on Team B—the team that, according to the bookmaker, has a higher implied probability of winning the game—you would need to bet ₹760 to win ₹100. If Team B are victorious, you win ₹100 with a total payout of ₹860 (initial stake of ₹760 + profit of ₹100).

American odds, depending on the negative or positive sign, either indicate the amount one needs to wager to win ₹100 or the amount one would win for every ₹100 staked.

Comparing Different Betting Odds

So, how would the practical application of all those types of sports betting odds look? Let’s consider an example of a fictional cricket match: Super Tiger vs. Fast Cobra. The cricket odds for Super Tiger to win are as follows:

American: -125

Fractional: 0.8/1

Decimal: 1.8

Let’s suppose that our stake is ₹75.

Using the formulas mentioned above, we can calculate the winning profit in 3 different ways:

(100/125) x 75 = ₹60

(0,8+1) x (75) = ₹135

8 x 75 – 75 = ₹60

Since the second result (fractional odds) includes ₹75 of the initial stake, all the results are equal (₹135-₹75=₹60). You can switch between the types of odds using formulas or online converters.

How Do Bookmakers Set Their Odds?

There are 2 basic factors that online sportsbooks consider when setting odds:

  • Statistical probability
  • Bookmakers’ profit

That is to say, among real sporting odds, every probability is changed by using a specific margin rate. For example, in a match, the winning chance of team A is 85%, and 15% for team B. We suppose the margin of sportsbook rate is 5%, the implied probability in the betting odds will be 90% and 20%.

Conclusion

The explanation above can help you understand the meaning of betting odds, moreover, they might increase your winning chance in sport betting. You can enjoy both the match and the potential money made. Enjoy!