Chris Hardy brings years of experience to Wetten.com, thanks to his strong background in journalism and online writing. Chris' career began nearly 20 years ago when he was hired to work for his local paper; he then made the move to web writing when he and his wife moved to the USA to be closer to family in 2017. This location change led Chris to develop a particular passion in US sports such as basketball and NFL (he remains a beleaguered Miami Dolphins fan and is sure their turnaround season will happen... one day) and he utilises his all-encompassing knowledge of US sports, along with soccer, when writing for Wetten.
What do betting odds mean
Learning about how betting odds are calculated and what betting odds mean is important if you want to make it big as a punter. This is because of the importance of Odds in betting. Odds indicate the likelihood of the event taking place, and the potential profit you will make upon winning the bet. If you are to make any bet, it helps to examine the odds, know how they are presented and calculated and then make the bet. By having the betting odds explained, you can make bets more confidently and your bets will have a greater chance of winning.
There are two ways to understand betting odds – one is to know how to read them and the other is to know how they are calculated. To understand odds better it is highly important that you understand both these aspects in great detail.
What do betting odds mean
Betting odds are the numbers which indicate the implied probability of any event occurring. Since betting rewards you on successfully determining the winner of any match or the outcome of any event, reading the correct likelihood from betting odds becomes more critical. Calculating the likelihood out of odds that the bookmaker offers you would again depend on the way the bookmaker decides to display the odds. It will also determine the final payout that you will be rewarded if you get a win against your stake.
In mainstream betting, you will find that there are three different ways in which the odds are presented. From each of these three methods, you can easily calculate the probability and your potential winnings.
These odds are very famous and most commonly used by the bookies based out of the United Kingdom and Ireland. They are typically written with a slash or a hyphen between the two different numbers it is represented by. So, both 6/1 or 6-1 are valid fractional odds representation. Now, it’ll be read as six-is-to-one. Also, if you want to calculate your winning, it’s straightforward. So, if you stake an INR 10 bet on the odds of 6-1, you will get back INR 70 (numerator/denominator of the odds* Stake + Stake). It should also be noted that the favourites would have the fractional ratio as less than one.
You would generally find that the decimal odds are the odds which are used mostly by the European bookmakers. As the name suggests, these types of odds are usually accompanied by the use of a decimal point. These odds are a bit easier to understand because they mostly tell you the number of winnings that you would get for every INR 1 that you wager. So let’s say the odds are listed as 10.0, and you wager INR 10. The total winning of yours could be calculated by just multiplying the decimal odds with your Stake. In this case, you will get back 10*10= INR 100 if you win the bet. The lower the decimal number, the higher is the chance of winning for that particular team or player.
American or Moneyline odds
They are very different from the ones that are fractional and decimal odds. The numbers in the American system are usually accompanied by a positive or a negative sign indicating the Favorites and Underdogs. The figure also means the amount of money you will get if you Stake INR 100 on it. So, for the Moneyline odds of +500, you will get INR 500 if you stake an INR 100 on your bet. For a Moneyline odds of -200 you will earn INR 100 if you bet INR 200 and win the bet. The higher the Moneyline, the lower the chance they actually have of winning.
After diving and becoming aware of the various types of odds and how you calculate your winnings, you should know how Betting odds are calculated. The nature of odds is that odds are basically numbers, which indicate the probability of any event happening. It is usually seen that for making an accurate guess about the likelihood, a statistical model is employed for the task. The bookmaker will include his opinion, data from the past matches, and even the odds offered by their competitors to finalize the odds, which they would then display for you to place your bets on.
One essential factor to note here is that the final form of odds that you receive also contains the margin of profit for the bookmaker as well. So after calculating the probability, they reduce their cut from it as well. After taking their margin (which depends upon the bookmaker), they then recreate the odds which they then present. That’s why every bookmaker presents different odds.
How betting odds are calculated – The Bookmaker’s Margin
If you are wondering how you will be able to calculate the margin that your bookmaker has set, then there is a straightforward mathematical equation that you can use to calculate the same. For simplicity, let’s assume that there are only three possible outcomes that the bookmaker you have chosen offers you to bet on. The first thing that you will have to do is convert the odds into decimal format.
Let’s say that the odds in the decimal format of the three outcomes is written as A, B and C. So, the total money which the bookmaker would receive would be calculated as:
(1/A + 1/B + 1/C) * the Stake. So, for an INR 100 stake and the decimal probability of 2, 4, and 10, the total money which the bookmaker would recover would be:
(½+¼+1/10) * 100 = INR 85. This means that the bookmaker will run in a loss of 100-85 = INR 15.
If you are wondering about the loss, you will have to see that the odds which we have taken are advantageous. In real life, the odds are meticulously set to turn the advantage in the favour of the bookmaker.
What other betting/casino guides & strategies are available?
Betting odds play a vital role when placing bets and so, Betting odds explained can be of great help in understanding this concept. Apart from betting odds, Wetten offers a variety of other betting guides and strategies that can help you further hone your betting skills and increase your chances of winning your bets. The guides include everything from how to place 1×2 betting to matched betting, cash out betting and more. You can also go through our dedicated guides for sports betting strategies for popular sports such as football, cricket, tennis and golf.
Betting odds will be different for different sports but the basics of how betting odds are calculated and what do betting odds mean remains the same. It is important to know how odds are presented so that you can read the odds and understand it before staking your money. Each bookmaker presents different odds as they include their margin while presenting the odds. The three kinds of odds formats, namely fractional, decimal, and Moneyline, all indicate the same odds. Before betting online, research and learn about the odds available and try to place your bets with a bookmaker offering the best odds for your favourite sport.