Odds can be daunting to a new bettor. Yet, understanding how to read betting odds helps you make better, more informed bets. Odds reveal which bets are worth taking and the potential payout. If you are new to sports betting or simply a little foggy on odds, the following guide explains betting odds, how to read them, and how to use them in your wagers.
How many odds formats are there?
There are three odds formats. Odds are usually presented as American, Decimal (European), or Fractional (British) odds. Here is a simple breakdown of each format:
- American odds – Shown as a number preceded by a positive “+” or negative “-” sign, e.g., -130, +240
- Decimal odds: Shown as a decimal number, such as 3.5, 0.9, 4.0, etc.
- Fractional odds: Shown as a fraction, e.g. (4/1, 5/3, 11/13)
All of these formats mean the same thing. They are alternate ways of presenting the same data and don’t affect payouts.
What do odds tell you about a game?
Odds are a fundamental aspect used by sports betting online sites like Betway to communicate the probability or expected chances of an event occurring. These numbers, in whichever format, reveal two things:
- The implied probability of an outcome
- How much money you could win/lose if you bet on that outcome
When you first encounter sports betting online, you will notice that odds appear in different formats across different platforms. While all these numbers mean the same thing, each odd is read differently. Let’s break down how to read American, Decimal, and Fractional odds.
How do you read American odds?
American odds use a “-” to indicate the favorite (team expected to win) and a “+” to indicate the underdog (team expected to lose). The easiest way to understand American odds is through a hypothetical $100 bet. To put it simply:
- Favorite odds (-) indicate the amount you must bet to win $100
- Underdog odds (+) indicate the amount you would win with a $100 bet
Let’s say a sportsbook prices a game between Team A and Team B as:
Team A: +250
Team B: – 400
The bookmaker has made Team A the underdogs, indicating a lower probability of winning the game. If you place a $100 wager on Team A, the potential payout is $250. Add this to your initial stake, and the total potential payout is $350 (initial stake of $100 + $250).
If instead you bet on Team B, you will need to bet $400 for a potential payout of $100. Team B is the favorite (indicated by the – sign). This means that the bookmaker gives them a higher chance of winning.
What if you are not betting $100?
Although the $100 bet is the best way to understand American odds, such a wager is not always feasible. The good news is you do not have to break your budget; the numbers are scalable.
Let’s say your standard bet is lower than $100. If you wish to bet on Team A (+250) to win, you can calculate your potential winning by multiplying your wager by 250 and dividing it by 100. This would look like this:
Wager x Odds (250)
100
Simply multiply your wager by 2.5 (250/100 as a decimal).
If instead you want to bet on Team B (-400), you must think in terms of the amount you wish to win. Whatever the amount, you can calculate your bet using the same formula. In this case, Amount x 400/100 or Amount x 4.0. This gives you the amount you must wager on Team B.
What about fractional odds?
You mostly see fractional odds in Irish and British sportsbooks. Also known as British odds, they can be summarized simply as follows:
- If the numerator (number on top or left) is larger than the denominator (number at the bottom or right), that team is the underdog, and the potential payout is high.
- If the numerator is smaller than the denominator, that is the favorite. The payout is lower because this team has a higher chance of winning.
The simplest way to understand fractional odds is to consider them as such: if you bet the number at the bottom, the number at the top represents the potential payout. Consider two teams with the following odds:
Team A – 8/3
Team B – 5/8
The bet is $3, and the potential payout is $8 for Team A. For Team B, the same. You can then scale the formula by multiplying the fraction with your preferred bet.
Are decimal odds different?
Technically, no. Decimal odds represent the same data as Fractional or American odds, except they are the simplest to understand. They represent the amount you could make on every $1 bet. The decimal represents the total payout, including your stake.
You can calculate your potential total payout as Total payout = stake x decimal odd. For example, if Team A has 4.5 odds and Team B has 1.2 odds, the potential payout is $4.5 on every $1 bet on Team A and $1.2 on every $1 bet on Team B.
Decimal odds are also European odds because they are most common in continental Europe, Canada, New Zealand, and Australia.
You can scale this formula up or down depending on your preferred bet.
Should you only consider odds when making a bet?
No. Consider all the statistics involved when evaluating the probability of outcomes in a sports match. Odds are key statistics that help guide your wager. However, sportsbooks often change the odds of a game slightly to either incentivize specific bets or create a vig. The vig, cut, or juice is the amount a sportsbook charges you to take your bet. It is how sportsbooks make money.
Because of this, always consider how all the available data – player injuries, previous matches, team lineup, weather, etc. – impacts a match’s outcome.
Wrapping Up: Where can you find the best odds?
Only the most reputable sportsbooks offer reliable odds. Because odds play such a crucial role in the quality of your bets, you don’t want to rely on a provider who prioritizes their vig over your winnings. Use trusted sites like Betway and try your newfound understanding of odds on your favorite games.