Understanding Betting Odds Sports

To properly understand sports betting, you need to understand
odds. They are an integral part of any sports wager, and they are used
to determine whether a wager is worth making or not. The
potential payout of any wager you place is calculated using a
combination of the relevant odds and your stake.

1. Sports Odds Explained
2. Sports Betting Understanding The Odds
3. Understanding Betting Odds In Sports

On this page, we explain about odds in some detail. We define
exactly what they are and the role they play. We also look at
the three different formats in which they can be expressed, and
explain why odds on the same outcome can vary with different
bookmakers.

Understand the odds in sports betting with our guide Sports betting is one of the most popular areas of gambling, with many favorites such as NFL, horse racing and football attracting millions of. A lot of what we cover here is explained in more detail elsewhere in our sports betting guide. That’s because this article was created for complete beginners, and we left some of the more complicated details out. We start by explaining what fixed odds betting is, as this is the most common form of sports betting. Understanding betting odds is key to successful betting. If you do not understand betting odds and the probabilities that they imply, you will struggle to succeed in betting on sports long term.

What Are Odds?

In sports betting terms, odds basically serve two purposes.
First, they are used to calculate the payouts of winning wagers.
Every time you place a bet with a bookmaker, you’ll be offered
odds at the time, which impact how much you can win. The higher
they are, the more you stand to win relative to your stake.

Once a game is scheduled and it’s odds are posted, the bets are going to start coming in. Now, it’s in the sports book’s best interest to keep the bets as even as possible. This is why oddsmakers give you a pay out at -110. Understanding the Vig or Juice. That’s a $110 dollar bet to win $100. Take the favorite and give the points.

Second, odds also reflect the likelihood of any particular
outcome happening. The more likely an outcome, the lower they
will be. This makes perfect sense, as you would expect to win
less when betting on an outcome that’s likely than when betting
on an outcome that is unlikely.

Imagine a tennis match where the player ranked number one in
the world is pitted against the player ranked 137th. It stands
to reason that the best player in the world is going to be
considered more likely to win than his opponent. Therefore, a
wager on his winning would have very low odds; a wager on his
opponent winning would have much higher odds.

This is a somewhat simplified explanation, but it gives a
general idea of the role of odds in sports betting.

Different Odds Formats

As you can see, the fundamental principle behind odds is
really quite straightforward. Things are slightly complicated by
the fact that there are three different formats of odds as
follows:

• Moneyline/American Odds
• Decimal Odds
• Fractional Odds

Chances are, at some point, you’ll encounter each of these
formats. For this reason, it pays to be familiar with each one.
They all work in essentially the same way–basically just
different ways of expressing the actual odds for any particular
wager.

Moneyline or American Odds

Moneyline odds are also known as American odds, and this is
the format most commonly used in the United States. They can be
displayed as either a positive or a negative number. A positive
number expresses how much a correct wager of $100 would win,
while a negative number expresses how much you would need to
stake in order to win $100.

If you saw odds of +150, you would know that a $100 bet could
return $150 in winnings, plus the initial stake of $100. If you
saw -150, you would know you need to stake $150 to return $100
in winnings, plus the initial stake of $150. An even money wager
(where you stand to win an amount equal to your stake) is
expressed as +100.

Decimal Odds

Decimal odds used to be associated mostly with mainland
Europe, Canada, and Australia. However, they have now largely
become the standard at most online bookmakers with the exception
of some US betting sites. This is because they are the most
straightforward of the three formats and are expressed simply as
a single positive number, typically to two decimal places.

The number shows how much the total payout will be, including
the original stake per unit staked. For example, a winning bet
at 1.5 would return a total of $1.50 for every $1 staked. A
winning bet at 2.25 would return a total of $2.25 for every $1
staked. An even money bet is expressed as 2.00.

Fractional Odds

Fractional odds are the traditional format used in the United
Kingdom, although decimal odds are slowly taking over.
Calculating potential profits and payouts with this format can
be a little tricky, certainly to start with, but the basic
principle isn’t as complicated as it might seem. As with
moneyline odds, fractional odds show how much potential profit
you can make. To calculate the total potential payout, you have
to add your original stake.

As the name suggests, these odds are displayed as a fraction.
A simple example is 3/1, which is said as “three to one”. 5/1 is
said as “five to one”, and so on. With 3/1, you can win three
units for every one unit staked, and with 5/1 you can win five
units for every one unit staked. 1/1 is even money, so you can
win one unit for every unit staked. As you can see, this is
quite straightforward so far.

Things get slightly more complicated, because this format also
includes examples such as 6/4, 11/10, and 5/2. The math involved
is thus not always so simple. With 6/4, you can win six units
for every four units staked, which is equal to 1.5 units per
unit staked. With 11/10, you can win eleven units for every ten
units staked, or 1.1 units per unit staked.

Whenever the first number is larger than the second, this is
said to be “odds against.” These are basically the equivalent of
positive moneyline odds in that the potential profit is greater
than the amount staked. Things get even more complicated as
there are also “odds on” odds. These are the equivalent of
negative moneyline odds in that the potential profit is less
than the amount staked.

An example of odds on is 1/4 is said as “four to one on”. 4/7
is “seven to four on”, and so on. With 1/4, you can win one unit
for every four units staked, and with 4/7 you can win four units
for every seven units staked.

Converting Odds Formats

If you ever want to convert odds from one format to another,
there are some reasonably straightforward calculations you can
do. We can save you the bother, however, as we offer a useful
tool which will automatically convert any odds from one format
to another. You can find this tool on the following page.

Why Odds Vary on the Same Outcome

For a lot of wagers on sporting events, you’ll see that
different bookmakers offer different odds. For example, one
might have a football team at +130 to win a match, while another
might have the same team to win the same match at +120. To
explain this, we expand on a statement made earlier.

When we said that odds reflect the likelihood of a particular
outcome happening, it would have been more accurate to say that
they reflect how likely a particular outcome will happen in the
view of the bookmaker. Predicting how likely any outcome is in a
sporting event isn’t an exact science, and it essentially comes
down to a matter of opinion.

This is why the odds in sports betting are variable, because not
all bookmakers will have exactly the same view on how likely a
particular outcome is. Odds can also be affected by other
factors, such as the amount of money a bookmaker has taken on a
particular market. What this means is that the odds that a
bookmaker sets for a wager aren’t always an accurate reflection
of the true likelihood of the relevant outcome happening.

Therefore, it’s possible to put the odds in your favor when
betting on sports. If you’re able to correctly predict the
outcome of sporting events often enough, you can consistently
turn a profit. It’s not easy, but if you can combine your sports
knowledge with an understanding of certain key aspects of
betting, it can definitely be done.

Odds are one of those key aspects, and you hopefully now
understand how they work and why they vary. You should also
understand why the use of odds is the main reason why bookmakers
make money, which we explain in the next article.

If there’s one thing you know, it’s sports. You’ve been making friendly bets with your buddies for years, and almost always come up a winner. But do you really understand odds in sports betting?

Sports betting odds can be tricky to understand at first, especially since you may see the odds posted in more than one way.

From plus/minus to decimal, to fractional — how is anyone supposed to know how to place the best bets?

Don’t sweat it, we’ve got you.

In this guide, we’ll explain everything you need to know about how to understand odds in sports betting, and how you can start creating your own odds.

Understanding Sports Odds: What Are They?

So, you want to place a bet on the upcoming match but you’re not sure how to get started.

First things first, you have to understand the odds to know which bets are worth the risk. We’ll touch more on that in the sections below.

Secondly, you need to know that there are a variety of formats for which odds are displayed, such as:

• American (plus/minus)
• Decimal Odds
• Fractional Odds

All of them are easy to understand, and we’ll show you in the upcoming sections of this article.

Lastly, odds are used to calculate the implied probability of a particular outcome in any sporting event.

Once you have a solid understanding of how the odds work, you’ll be able to determine which bets offer the best payouts and how much money you are willing to wager.

Sports Odds Explained: American Odds

If you don’t know how to calculate sports betting odds, don’t worry, you’re not alone.

The most common type of sports odds used in North America is American Odds, which uses a plus/minus system for calculating payouts.

Below, we’ll answer your question: how are odds calculated in sports?

We’ll start with the American way, and give you some betting odds examples so you know exactly what you’re looking at the next time you want to make a wager.

But first, it’s important to know what odds are designed to do.

1. Odds flag potential bettors as to the implied probability of the bet
2. Odds announce the payout you could win if you bet on that outcome

However, odds can be influenced by more than the events that are relevant to the outcome of the game or match.

Many traditional sportsbooks are known for manipulating the odds in their favor and factor in how much the book is charging for you to place your bet. You may hear fellow wagerers refer to this cut as the “juice”, “vig”, or “cut.”

How Does Plus/Minus Work in Sports Betting?

When you see +130/-240 (or any other three-digit combination) you know you’re dealing with American odds.

The plus or minus indicates whether you’re betting on the favored team or the underdog.

A negative number on the betting line implies the favorite, and exactly how much you have to bet to walk away with a $100 payout.

Positive numbers belong to the underdog, and let you know how much you’ll win if you bet $100.

For example:

How Do You Understand Odds in Sports Betting With American Odds?

Using the above example, calculating your odds look like this:

To win $100 on the Vikings (favorites), you would need to wager $130. If you bet $100 on the Packers (underdogs), you’d be paid out $260 in addition to receiving your $100 bet back.

Calculating Payouts

Let’s say you don’t want to bet $100 of your money — we get it, that can add up.

Many people prefer to place a series of smaller bets on multiple games to get the most out of the experience.

Winning two and losing one can be more appealing than losing it all in one shot.

With the above example, let’s calculate the odds of betting the underdog with only $10, instead of $100.

Using the +260 odds on the Packers, a $10 bet would payout $26 in profits, plus the return of your original $10 bet for a total of $36 back in your pocket.

In most cases, the sportsbook you’re betting with will do the calculations before you even place the bet.

You’ll know the exact payout before you confirm your bet.

Calculating Implied Probability

If you’ve started to research exactly how sports betting works, then you’ve probably heard the term “implied probability”.

The odds are what suggest a particular outcome in any match, and the implied probability refers to the prospect of that outcome.

To calculate the implied probability you need to convert the odds into a percentage.

The reason you’d want to calculate the implied probability is to determine if the estimated probability of a match you wish to bet on is different from the sportsbook so that you can adjust your bet accordingly.

Remember, that all odds available at a sportsbook include the “juice” or “cut” so you’ll need to factor that in, as the implied probability of every conceivable outcome of a match is going to be above 100%.

This is called overround, and it’s the reason you should remove the “juice” from betting lines before calculating what the oddsmakers actually expect the outcome to be.

Sports Odds Explained: Decimal Odds

Of the three types of odds you’ll come across, betting with decimal odds are the easiest to learn.

Decimal style odds are typically used in Europe, but many Sportsbooks default to American odds. However, you should be able to set the preference to any betting style.

Decimal odds look like this:

How Do You Understand Odds in Sports Betting With Decimal Odds?

Calculating your potential winnings with decimal odds is easy. All you have to do is multiply the amount of money you’re wagering with the odds attached to the team you’re betting on.

For example:

Calculating Implied Probability

Calculating your implied probability is a valuable tool to determine if a wager is worth the risk.

Using our example above, we’ll determine implied probability using the following formula: 1 / Decimal odds

With the above example, the Toronto Blue Jays implied probability of winning is:

1 / 2.10 = 47.6%

Sports Odds Explained

And the New York Yankees implied probability of winning is:

1 / 1.40 = 71.4%

In this case, the New York Yankees have a much higher probability of winning, and therefore the safer bet… unless you know something we don’t.

Sports Odds Explained: Fractional Odds

Fractional odds are most commonly used in the UK and can typically be seen when placing bets on horse races.

They’re sort of funny looking odds, but when you understand what they mean, they are really easy to calculate.

How Do You Understand Odds in Sports Betting With Fractional Odds?

Let’s say you want to bet on a horse in the Breeders’ Cup Classic.

You open up your betting app and see strange-looking figures such as 8/3 or 1/2 (which, by the way, we would say “eight to three” or “one to two”).

So, how do you calculate these odds?

Simple.

The number on the left (8) tells you how many times the oddsmaker expects the related outcome to fail. And the number on the right (3) dictates how many times the outcome should succeed.

So, what does this mean for your pocketbook?

Sports Betting Understanding The Odds

Calculating Payouts

Calculating your payout for fractional betting is really quite easy.

Multiply your bet by the numerator (or top number), then divide the result by the denominator (bottom number).

For example, if you place a $50 bet on 8/3 odds the calculation would look like this:

(50 x 8) / 3 = $133.33 (a total of $183.33 coming your way).

Or if you placed your $50 bet on the 1/2 odds, then the calculation would look like this:

(50 x 1) / 2 = $25 (for a total of $75 in your pocket).

Calculating Implied Probability

Figuring out the implied probability for fractional bets can be done fairly easily.

Let’s say your horse of choice has 8/3 odds on him, this means that out of 11 races (8+3) your horse is expected to win eight times. Pretty good right?

Now divide the number of times he’s supposed to win by the number of races on the roster and you get your implied probability: 8 / 11 = 72.7%

Remember though, it costs money to play, so anytime you’re calculating odds, whether American, decimal or fractional,the outcomes when added together will always equal more than 100%… that’s the “vig” or the “cut” we’ve been talking about.

What is a Push?

A push — while not related to odds — can directly affect your payout so we thought it was worth mentioning here.

Being aware of the possibility of a push before you place your first bet on a sports match is important.

Understanding Betting Odds In Sports

So, what is a push, exactly? In simple terms, it’s a tie.

You will not see a push on the moneyline when placing bets, so you need to know in advance if it’s an outcome you can bet on. Typically this only applies if you’re betting against the spread or making a totals bet.

If a push occurs and hasn’t been bet on, then you’ll just get your money back, as it’s considered neither a win nor a loss.

A point spread will usually add half a point to each number so that a push can’t happen, but that’s not always the case, so keep your eye on your bets and all possibilities of a push.

What Is ZenSports?

Now, that you know how to figure out odds in betting this is where it gets really interesting.

ZenSports is an online peer to peer betting marketplace that removes the need for a bookmaker, and thus the “vig”, “cut”, or “juice”.

By eliminating the bookmaker, ZenSports can charge 50-90% lower fees than traditional bookmakers do.

On top of saving a lot of money, every customer that uses ZenSports is betting against other sports bettors (not greedy bookmakers), so customers feel good knowing that they’re going up against people that are just like them.

Create Your Own Bets and Odds With ZenSports

How does peer to peer betting work, exactly?

By eliminating the bookmaker, ZenSports has essentially created a marketplace for which every bettor plays a role in creating a fun, decentralized ecosystem for everyone involved.

Here’s a five-step overview of how the ZenSports process currently works:

1. Makers create bets. Anyone can create any imaginable sports bet they want with their own terms, payout, and wager amount.
2. Takers accept bets. Anyone can accept part of or a whole bet created by a Maker.
3. Makers submit the results of the bet outcome. To prevent a Maker from submitting false results, Makers have an escrow fee of 10% of their bet set aside in case of a dispute by the Taker.
4. Takers can dispute results. A Taker can dispute any outcome but are required to hold 5% of their bet in escrow aside to prevent the Taker from making false disputes.
5. The Marketplace resolves disputes. The Marketplace is incentivized to vote correctly because they will receive half of the losing party’s escrow amount if they vote alongside the majority of the voters. The prevailing party received a full refund of their escrow fee, along with half of the losing party’s escrow fee.

All bets are then paid out accordingly.

ZenSports is the only mobile peer to peer sports betting marketplace, where anyone can create and accept bets around the world without the need for a centralized bookmaker.

The future of online sports betting is here.