Betting Odds Explained – Complete Guide
Betting Odds Explained in Online Casinos
Odds in sports betting have two main purposes. The first is to calculate the payout to the winning wagers. Second, it reflects the chances that a specific outcome will happen. From football matches to presidential elections, betting enthusiasts use odds for expressing probabilities. While it is simple in theory, it can be more complicated in practice.
If you want to understand the fundamentals of sports betting, then you need to understand how odds work. If that is your goal, keep on reading this sports betting odds explained article and learn from the insights we’ll share.
What is Probability?
In its simplest sense, probability refers to how likely one thing will happen. Because it is almost impossible to predict the certainty of an outcome, the next best thing is to identify its probability or likelihood.
For instance, when tossing a coin, there are two possible outcomes – head or tail. The probability that it will land on the head is ½ and the probability that it will land on the tail is also ½.
Now, let’s consider rolling dice as an example. There are six possible outcomes – 1, 2, 3, 4, 5, or 6. This means that if you are betting, the probability that 1 will win is 1/6 or 16.67%.
When applied to odds, bookies usually use fractions or decimals to indicate the likelihood that an event will happen. Later in this betting odds explained guide, we’ll talk about the differences between the two main ways of expressing probability and winnings in odds.
Using Betting Odds to Calculate Probability
Now, if the concept of probability is still odd to you (pun intended), this odds in betting explained article will give you a look at more practical examples.
To make things easier, let us use 8/1 as an example. This is a fractional odd (more of this will be discussed in the next section of this odds sports betting explained). From here, you can calculate the probability using this formula: B / (A+B). From the 8/1 example, 8 is A and 1 is B. Therefore, it is computed in this formula – 1 / (8+1) or 1/9. When you compute, the answer is .11, which means that the probability of an event happening is 11%.
Decimal Odds Versus Fractional Odds
When it comes to expressing odds in sports bets, two main formats are used by bookmakers – decimal and fractional. The difference is pretty much self-explanatory. In the case of decimal odds, they are expressed in whole numbers with up to two decimal places as against fractional odds that are expressed in a fraction or with numbers separated by a slash.
Aside from the way the numbers are presented, another key difference that we would like to highlight in this odds betting explained guide is that fractional odds indicate only winnings. Unlike decimal odds, fractional odds do not show the returned stake.
In the case of fractional odds, the number will be displayed as a fraction, which means that there will be a presence of a slash (/). If it is expressed as 3/1, this is read as three to one. This means that you can win three units for every one unit staked. If you bet €1, you will get €3 in case your bet wins. In contrast, a decimal odd system has a decimal point. The formula will be discussed in the next part of this decimal and fractional betting odds explained.
While decimal odds are more popular these days, many would like to stick to fractional odds simply because of tradition. In reality, you can choose which one you are more comfortable with.
Luckily, you don’t have to choose between decimal or fractional odds. On popular and reliable betting platforms, such as DigiBet, there is a drop-down menu, so you can choose the format for displaying the odds. The default display at DigiBet, however, is in a decimal format.
How Decimal Odds Work
While most people grew up following the fractional odd system, the decimal odd system is also gaining more popularity. Europe, Canada, New Zealand, and Australia are using the decimal system. This is a straightforward format, which is also the reason for its popularity. It is a single positive number with up to two decimal places.
To calculate the odds in a decimal odd system – this is the simple formula: winnings = (odds x stake) – stake. Let us say that the odds for a sports team is 2.4 with a wager of €10. Using the formula earlier, here is how you can compute your winnings = (2.4 x 10) – 10. This means that you will win €14 if you bet €10.
Now that you reached the end of this odds betting explained article, we hope that you were able to learn a thing or two. Odds predict the likelihood of an outcome in an event, including sports. The probability can be expressed in decimal or fractional systems. Between the two, the decimal format it the most popular.