For newcomers, interpreting the different odds formats and calculations used in betting can seem daunting. However, a basic grasp of how odds work is critical for anyone looking to place educated sports wagers.
This beginner’s guide covers the fundamentals of understanding and deciphering the odds you’ll encounter at online and retail sportsbooks.
Fractional (or British) odds represent the potential profit relative to the amount wagered. The number on the left is the profit, while the number on the right is the stake.
For example, odds of 5/2 mean for every $2 staked, the punter receives $5 in winnings. So a $10 bet at 5/2 returns $25 (5 x $2 bet).
The lower the first number, the higher the implied probability of that outcome occurring. Odds of 1/10 suggest a very likely event vs. odds of 10/1 for a longshot underdog.
Decimal odds express the total payout from a winning bet including the original stake. It is calculated as the decimal number equivalent of the fractional odds.
Converting our 5/2 fractional odds example, 5/2 equals 2.5. So decimal odds of 2.5 mean a $10 wager returns $25 (original $10 stake + $15 profit).
The higher the decimal number, the longer the odds and lower probability of that outcome happening. Odds of 1.10 indicate a highly probable event vs. 21.0 for a massive underdog.
American (Moneyline) Odds
Moneyline odds show how much needs to be wagered to profit $100 or how much could be won from a $100 bet.
Odds with a minus (-) sign indicate how much must be wagered to profit $100. Odds with a plus (+) show the potential winnings from a $100 bet.
For example, -200 odds mean betting $200 is required to profit $100. +300 odds mean a $100 bet would return $300 in winnings.
Again, the lower the number, the more likely that outcome is deemed to occur.
Converting Between Formats
It is helpful to be able to translate between fractional, decimal and moneyline odds. Online converters make this easy by simply inputting one format to instantly see the other equivalents.
Understanding how odds are expressed across different formats enables punters to compare odds and maximize value when betting with different sportsbooks or in different regions.
Interpreting Betting Odds
While daunting initially, grasping how betting odds fundamentally work is key to making informed wagers. Comparing the implied win probability and potential returns for outcomes is crucial to developing betting value and strategy.
Odds also fluctuate constantly in reaction to new information and betting activity, affecting their relative value. Paying attention to line movements is equally important for punters.