How Do Betting Odds Work?

We have all heard the statement ‘The house always wins’ but if you are a regular bettor, you know that it is possible to win money when playing either in a traditional or online casino.

While most attribute winning to sheer luck, certain techniques can increase your chances of a great payout. One of these ways is by understanding betting odds.

While you can use casino guides like to find casinos with the greatest odds, understanding the odds will give you a better edge when placing bets.

If you are starting your betting journey or have been in it for a while, read on to get a better understanding of how betting odds work and how you can apply the knowledge in your favor.

What are betting odds?

Before we go into the types of odds, we need to fully comprehend what betting odds really are. Simply put, betting odds show the possibility or chances an event will happen. This event could be a tournament, a match, a race, or a game.

Betting odds reveal the amount you will win if the event you bet on loses or wins. The higher the odds, the more you will win, and vice versa.

Factors that influence betting odds

Technological advancements in online casinos have had a significant impact on the odds of games. With the introduction of sophisticated algorithms and random number generators (RNGs), online casinos can ensure fair gameplay and unpredictable outcomes. However, there are several main factors that contribute to the odds of a game. These factors include the game’s house edge, player skill level, bankroll size, and the amount of money wagered.

Types of odds

So, how do betting odds work? There are three main ways that odds are presented.

Money Line odds

Money line odds or American odds, are the predominant betting odds used in the United States. Money line odds are easy to use as the bet is made in favor of the team that wins. Depending on the sport, there are three main outcomes in a money line bet-win, lose or draw.

Money line odds are usually based on a $100 bet and can be seen with a minus (-) that indicates favorites and a plus (+) sign that indicates underdogs. For example, when a bookmaker offers Team X a money line of -110 and Team Y +120, it predicts that Team X is expected to win the game.

Basically, if you make a bet on Team X, you will have to risk $110 to be able to make a profit of $100 and a total of $210. If you bet on Team Y and it wins, you have to place $100 to win the $120 making the total $220.

It is important to note that a money line payout on a favorite can produce a lesser payout than on an underdog.

Decimal odds

Decimal odds are the primary odds used in Europe, Canada, Australia, and New Zealand. These odds are also known as continental odds or digital odds, and many betting platforms offer bettors the chance to view odds in this format.

Calculating a decimal odds payout can be simple. All a bettor needs to do is multiply the amount you want to wage by the numbers the betting platform show as odds (wage*odds). The higher the decimal odds, the less the payout.

For example, if Team X has odds of 3.6 and you place a wager of $25, you will multiply 3.6 by 25 to get $90. Here, your profit will be $65 ($90-$25), and your stake is already included in your total payout.

Fractional odds

Fractional odds, also referred to as British odds or traditional odds are mostly used in UK and Ireland. Fractional odds are presented using a slash (/) or a hyphen (-) but mostly using a slash.

For example, if the odds presented for Team X and Team Y are 10/1 and 12/5 it means you stand a chance to win $10 for every $1 you wage for Team X and $12 for every $1 waged for Team Y. If you decide to wager $20 for Team X, you stand a chance to win $200 (20*{10/1}) in profits and a total payout of $220.

If you wager the same amount for Team Y, you stand a chance to win $48 (20*{12/5}) and a total payout of $68.

In conclusion

For those looking to get better at betting, understanding betting odds is essential. Nevertheless, if calculating for yourself feels like too much work, an online gambling calculator will be a handy tool. Gambling calculators help you work out which particular odds best suit your desired outcome. Additionally, some calculators include the different types of international betting odds available, providing a great benefit to users of various wagering sites around the world.