Betting Odds Explained

If you want to bet on sports, it is vital to understand how to read sports betting odds first. While it can be tricky to figure out at first, it is important to get a good grasp of the basics. Odds are mathematical representations of the implied probability of that event taking place (more on that later). They are offered in a few different formats: the most common is American odds, but decimal odds and fractional/UK odds are also sometimes used. Continue reading this “Betting Odds Explained” guide to be able to figure out exactly what you are looking at.

Top American Sportsbooks

American Odds

American odds are the most commonly used format for most legal sportsbooks in America. With American odds, there are two values to read: one negative value (commonly referred to as the “favorite”) and one positive value (commonly referred to as the “underdog”). The negative value is the outcome that is more likely to happen, hence the usage of the term “favorite”. The positive value is less likely to happen, and therefore the “underdog” in the matchup.

American odds also give you information about the payout: a negative value indicates the amount of money that you would have to wager to win $100, while a positive value indicates how much money you would win if you placed a $100 bet. For example, if a team’s American odds to win a football game are (-160), you would have to place a $160 wager to win $100. On the other hand, if the other team’s odds were (+180), a $100 bet would win you $180. In some sports (most commonly football) betting on the game winner this way is referred to as “betting the moneyline.”

Decimal Odds

Less common in the United States, decimal betting odds are commonly used in foreign countries with legal sports betting. To understand how to read sports betting odds in decimal form, you would multiply the amount you plan to bet by the odds given. One important difference to note between decimal and American odds is that decimal odds include your original wager in the payout. For example, if a team’s decimal odds for a soccer game were 2.50 and you planned on betting $100, you would win $250 if the bet pays out, for a $150 final profit. This is equal to +150 American odds.

Fractional/UK Odds

Fractional odds are typically used in horse racing. They are presented in a fractional format, like 1/5 or 8/5. The number on the left is the amount of times the oddsmaker expects the outcome to fail, while the number on the right is the amount of times it is expected to succeed. For example, if a horse in a race has fractional odds of 14/1, the oddsmaker is saying that if the race was run 15 times, the horse in question could be expected to lose 14 and win 1 race. This ratio also shows how much you stand to win versus how much you have to bet, where a 14/1 bet (+1400 American odds) offers 14 units of payout for every unit risked.

What Is The Vigorish?

The vigorish is simply the built-in house advantage that a sportsbook uses to create a profit. It can be thought of as a fee that you pay to place a bet on the sportsbook you are using. The vigorish is built into the betting odds. It is known by a variety of other names, most commonly the “vig,” but also as “juice” and “cut.” Factoring in the vigorish, a bettor would have to win just over 52% of their bets to come out even, assuming all wagers are of the standard -110 odds. While some sportsbooks offer -105 odds, others put a standard wager at -115 odds, which means bettors would need to hit 53.5% of their bets to remain profitable.

What Betting Odds Are Used Most?

In America, American odds are almost exclusively used. Traditional American odds on the outcome of a game is commonly referred to as the moneyline. A notable exception to the usage of American odds in America is horse racing and other types of racing, which are typically presented in fractional odds format. Most sportsbooks will allow you to toggle the betting odds between American and decimal.

What Is Implied Probability?

Implied probability is the likelihood of a particular outcome, according to the odds set by the bookmaker. This involves converting the odds into a percentage, which is the likelihood of the outcome occurring. For example, if a team’s American odds are (+120), the implied probability of that team winning is 45.45%. The formula for implied probability is:

• Implied probability (for negative betting odds) = American odds / (American odds + 100)
• Implied probability (for positive betting odds) = 100 / (American odds + 100)

Why Is It Important To Pay Attention To Odds?

It is important to pay attention to odds for a variety of reasons. First, they provide the implied probability of the outcome. Secondly, they provide the payout of any potential bet that you may be considering. Since odds are always subject to change, any movement in the betting odds can provide insight into how the public and sharp money is betting, as line movement is an attempt by the bookmakers to garner more bets to one particular side as a result of lopsided betting on one outcome.

Betting Odds Explained: Opening vs Closing Lines

Opening odds vs closing odds in sports betting can be the difference between a profitable and an unprofitable sports bettor. Take NFL betting, for example. When the week’s odds are released on Monday or Tuesday, these are the opening odds for the upcoming games. Right before the game kicks off, these are the closing odds for the NFL game. Based on injuries, practice availability, game plans, media concerns, betting action, or even coaches’ comments, these odds can shift significantly. If you bet early, you always want to be on the side you expect the line to move. This is called be +EV (positive expected value), which means you are foreseeing the odds movement and locking in a wager before it becomes less profitable for the bettor.

Line Shopping Odds

Line shopping is another important feature in understanding sports betting odds and trying to make a profit. Each sportsbook has different odds posted for each game. While they may be similar, the smallest differences add up over time. In short, line shopping is comparing sportsbooks and what wager they are offering you. Use NBA betting as an example.

If one sportsbook commonly lists its favorite at -125 odds, while another has them at -115 odds, it’s better to take the -115 odds. While a $100 wager would pay out $80 in profit on the first site, the same wager on the second site would return $86.96 in profit. Imagine doing this over 100 different bets and hitting three out of every five correct (a tough ask to do). The 60 correct bets on the first site (with losses subtracted out) would be worth $800; however, you’d be up $1217.60 on the second site for making the exact same bets but at better odds.