For anyone getting into sports betting, understanding the odds is a vital part of the process. Odds show the probability of a specific outcome occurring. These are carefully created by the bookmakers and use statistical analysis, market demand, and public sentiment or trends. Importantly, odds are just implied probability and do have a margin in place for bookmakers so that they can make a profit. As such, the odds are not always a truly accurate representation about the likelihood of an outcome, which is something worth considering. Read on to find out more about sports betting odds and how to understand the different formats for the best betting experience.
Types of odds formats
Around the world, betting odds are expressed in different formats. These are decimal, American and fractional. The way the odds are read are different across these formats, though the overall result is the same in terms of the probability. However, you do need to know how to read the odds across these different formats if you’re to understand how much profit is possible and the implied probability of the event occurring.
Fractional odds
Typically used in the UK, this odds format is the most commonly found one at sportsbooks. It’s used in horse racing on a wider, global basis as well. This method shows the potential profit in relation to the stake. For instance 5/1 odds means that a £1 bet would give you a £5 profit. It means that in total you would get £6 back from the bet in total. As such, the lower the odds (i.e., 2/1) mean that you’re going to get a smaller profit, but this is because the event is more likely to happen. The higher the odds, for instance, 50/1, means the event is less likely to happen. But if it does, a £1 bet would yield a £50 profit. Odds of 5/1 mean that there is a 16.67% chance of the event occurring.
Decimal odds
This type of odds format is predominantly used in European betting. It shows the total payout for each £1 bet on an event. For instance, if a decimal odd is set at 2.50, then it means that a £1 bet will return £2.50. There will be a profit of £1.50 and the initial £1 stake is also returned. As with fractional odds, the higher the number, the bigger the profit. But, it also means that the probability is much lower that the specific outcome will occur, meaning the bet is far riskier than other options. Specifically, odds of 2.50 mean there is an implied probability of 40% of the sporting event outcomes occurring.
American odds
When it comes to American odds, the odds use a format of positive and negative numbers, using the individual mathematical signs in front of each odd to denote the amount that can be won. A positive number shows how much you can win if you place £100 bet, while the negative number indicates the amount you need to bet to win £100. So if there is a +150 odd, then betting £100 would win you £150. However, -150 odds means that you will need to bet £150 to win £100. As such, the negative odds represent the favourite, requiring you to bet more. It’s an indication of how likely the event is to occur. On top of this, there are things to pay attention to when using American odds. -200 odds have a 66.7% implied probability, while +200 odds have a 33.3.% implied probability meaning a 1/3 chance of the event happening. This is an easier way to understand and utilize these odds, while understanding the risk more effectively.
Choosing the format
Each person is different, and some bettors grow up on one format over another. However, many sportsbooks such as PremierBet provide the option to switch odds formats. This means that bettors or punters can find the format that makes the most sense to them, or that they are comfortable with. This is essential for anyone planning to place a bet. If you don’t understand the format you are using, then you’re not going to be able to make sensible, informed and accurate betting decisions.
