While pursuing sports betting, every bettor will be introduced to the concept of odds. Along with the other things involved in sports betting, bettors also need to pay heed to the odds as the odds determine the payout you’ll get upon winning the bet. As a gambler, you’ll have access to thousands of internet sportsbooks worldwide. On account of all this, you’ll be exposed to plenty of sports betting odds from the different sites, but nothing will be of benefit unless you know how to calculate the sports betting odds. Let us create awareness concerning- How do sports odds work?
Usually, bettors take the betting odds lightly and regret it later on. But hardly do they realize that only the odds can open the doors of success for you. Before placing any wager, you should always check the concerning sports betting odds for the same.
Sports betting odds
Understanding the sports betting odds will make it easy for you to figure out which bets are worth taking and which are not. There are undoubtedly diverse formats used across different sites for displaying odds, but all are easy and simple to understand. The odds do not merely give you the payout but also help you calculate the implied possibility of a certain outcome in a given event.
You cannot miss out on this step to make your name as a professional sports bettor. Be it the money you should wager on or figuring out the value bets; everything begins with a solid understanding of odds. Before proceeding further with the concept of odds, let us make out the different formats of odds.
Different odds formats
There are three most popular formats of odds used across the sportsbooks. The three formats are American, Decimal, and Fractional odds. Be it whatever format; the odds serve two purposes.
The odds go a long way in depicting the implied probability of the outcome they are attached to. Besides this, they also indicate how much money you’ll stand to win on the particular outcome. But you need to be cautious while relying on odds, especially when evaluating the probability. Some factors go a long way in impacting the odds.
Another thing to take into consideration while placing bets is the sportsbooks. Sometimes, the sportsbooks manipulate the odds by incentivizing the bets on one side. In addition to this, looking at the odds will also reveal how much the sportsbook charges for a particular bet.
Here are some popular formats of sports betting odds.
You’ll get to witness American odds in, preferably the United States. Some people also refer to it as Moneyline odds as they work differently for favorites and underdogs. Suppose you are betting on the favorites, then American odds will work by showing how much money you will bet to win 100.
The odds will be completely different for betting on the underdogs. If there is a positive number and the odds, it shows how much you can win if you risk 100. Many people have no idea what minus plus signs mean, along with the odds.
Both plus and minus signs indicate the expected payout and whom you are betting: favorite or underdog. For instance, you need to wager $130 to win $100 on the penguins. You’d stand a chance to win $110 if you invested $100 in Senators.
Just because you know these odds as fractional odds, it does not mean that other names do not call on these. Some people also know fractional odds as British, traditional, and UK odds. The bettors don’t know this, but these odds are mostly used when betting on horse racing. But you all use it for other sports as well.
By way of looking at the fractional odds, you’ll get to know the net total paid out to the bettor if they win. For instance, for every 5 a bet, the bettor backing Manchester United gets a payout of 1. As the odds are displayed in fractions, these are also referred to as funny-looking odds.
The decimal odds are seen in Canada, Australia, and Europe and are the easiest of all the formats. Most sportsbooks display the odds in decimal format as it is easy to understand for the bettors. You’ll get the exact amount paid out if you emerge as a winner, which will be indicated in the decimal odds.
For instance, you’ll witness decimal odds in the format like this:
Tampa Bay Rays 2.40
Cleveland Indians 1.61
Have trouble with calculating the payout from decimal odds? If yes, then we have a way out for that also. Calculating winnings with decimal odds will become all the easier for you by learning its formula. You simply multiply your wager by the odds concerning the team on which you are betting. It will determine your payout.
To calculate the winnings, you need to subtract the original wager from the payout. Here’s the formula for the same.
Winnings = (Wager x decimal odds) – wager
How to compare odds?
Do you think you can win by simply going with picking the odds whatever comes your way? If yes, then you are wrong here. There are ample sportsbooks, and every sportsbook has different odds. Betting does not work by simply picking the odds. If you want to win and sustain yourself for a long time, you need to compare sports betting odds from different sportsbooks and pick the best one.
Comparing odds is essential as there are differences in skill levels between teams and competitors, which could be large enough before a contest becomes unfair. One advantage you have while betting through the sportsbooks is that they let you change between Fractional, Decimal, and American odds.
But as far as it is about converting the odds, then it is a bit tricky because Moneyline odds consist of both positive and negative numbers. You need to divide the Moneyline odds by 100 and add 1 to convert positive American odds to decimal odds.
If you want to convert the negative American odds to decimal odds, divide 100 by the money line odds and then add 1 to it.
How to calculate your payout?
There’s no issue as far as you are betting on one sport, as you can easily calculate the payout. But in case you are betting on more sports at one time, you are supposed to use an odds converter or odds calculator. This makes calculating the payout all the easier.
Here are some of the steps outlined below, following which you can easily calculate the payout.
The first thing you should decide is between the American, decimal, and fractional odds. This will serve as the basis of your calculation.
Secondly, you have to type the odds you were given in the box given to you. Be careful to use correct formats while entering the odds.
Now comes the stake. You need to type in the amount you want to bet for this.
Lastly, you’ll get to see one option on the sportsbooks, which will be to calculate profit. You simply need to click on that specific option. The calculator will multiply the odds by the stake to show you the payout.
This was all about the sports betting odds you encounter while placing your wagers. By now, everyone must have understood- How do sports odds work? Now, you can easily look forward to placing the bets with more confidence and knowledge.