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Best Betting Sites New Zealand » Betting Guide » How Betting Odds Are Calculated? Let Us Explain!

How Betting Odds Are Calculated? Let Us Explain!

Publish Date: 26/05/2020
Fact checked by: Cora Williams

What do betting odds mean?

If you want lasting success with your sports bets, you’ll need to know how betting odds are calculated. We can show you how to calculate betting odds so that you can figure out whether the bookmaker is giving you a fair price for your sports bets. Plus we will have betting odds explained so that you won’t have to ask what do betting odds mean anymore.

Odds are everything in the sports betting world. There’s little point knowing the answers to questions like ‘What is 1×2 betting?’or ‘How does cash out betting work?’ unless you know the basics of how to calculate betting odds.

So if you really want to know how bookmakers make money, you’ll need to understand how betting odds are calculated. Plus by having betting odds explained, you’ll be much better placed for winning your bets anywhere from a betting exchange in New Zealand to the best betting sites in New Zealand.

Betting odds explained

So if you are asking what do betting odds mean, it’s probably simplest to think of odds as displaying the likelihood of something happening in a sporting encounter. This is why you will get odds for anything from the next Premier League champion to the winner of the next Grand National horse race.

But you will also get betting odds for specific events within a sports match or race. This means that you can bet on odds for things like who will get the most runs in a cricket match, or even who will win the first set in a game of tennis. You can also get something similar to odds when working how many times you could win playing games at the best online casino in New Zealand.

If something has short odds, it means that it has a strong chance of winning. So you might see short odds for things like Liverpool to win the Premier League or Novak Djokovic to win Wimbledon. Betting on short odds means that you would have a decent chance of getting a winning result, but if you won your bets, the bookmaker would give you relatively small returns on your bets.

If something has long odds, it means that it would have a small chance of winning. This means that you’d get long odds for things like Hull City to win the FA Cup or Afghanistan to win the next Cricket World Cup. Betting on long odds means that you might stand little chance of winning your bets, but you stand to make some impressive winnings should luck come your way. Just remember to ask ‘What is Asian handicap betting?’ to see how you can get better chances with winning on long odds.

Bookmakers will present their odds numerically, and you can simply read the odds to see how the bookmaker thinks the sporting event will go. You’re probably most likely to see odds presented either in fractional, decimal or American odds formats. You’ll normally be able to switch between the different odds formats. So if you’re still asking what do betting odds mean, you’ll need to understand at least one of the following odds formats.

Decimal betting odds explained

If you’re asking which bookmaker is the best for beginners in New Zealand, you might want to use the decimal odds format. This odds format the best option for newcomers to sports betting, as the higher the number is, the less chance the team or player has of winning.

So if you saw that Southampton had odds of 1.65 and Newcastle United had odds of 5.25, you’d know that the bookmaker thought that Southampton had a better chance of winning the football match.

You can easily calculate how much winnings you’d get with the decimal format. Just multiply the odds by your betting stake and take away the stake.

What do betting odds mean in fractional format

It’s also important to know how betting odds are calculated in the fractional format as this is used at most UK bookmakers. The number on the left side of the fraction represents what you’d get in terms of returns from a winning bet, whereas the number on the right side represents your betting stake.

So if you saw odds of 6/4 for Rafael Nadal to win the US Open, you’d get £6 in returns for every £4 in stakes that you put down.

How betting odds are calculated with the American odds format

While you are unlikely to need to know how to use American odds, we thought that we should include this odds format in our online betting guide for New Zealand. Here you’d see the odds for the favourite represented by a number with a minus sign. This would represent how much money you’d need to stake to win £100. The underdog would have a number with a plus sign that would show you how much you’d win for every £100 that you’d bet.

How to calculate betting odds

Now that we’ve answered your questions about what do betting odds mean, it’s time to think about how bookmakers come up with their odds. They will invest plenty of effort into making predictions that are better than the average punter, and they hope that this will be reflected in their odds.

If a bookmaker fails to put on fair odds, then you can always use the best guide for making bookmaker complaints New Zealand has to offer. Definitely something to consider after you know the answer to the question of ‘Is online gambling legal in New Zealand?’, as bookmakers will only get a license once they can prove that they offer a fair and safe betting service.

Why it’s important to know how betting odds are calculated

Regardless of whether you want to put down a simple match winner bet or even try the best strategy for no risk matched betting New Zealand has seen, you’ll need to know how betting odds are calculated. After all, how else are you going to know whether the odds that you are betting on are good value or not?

Above all, know how odds work means that you’ll know whether you want to bet at one particular bookmaker’s site or try your luck with another bookmaker who’s giving you better value odds.

Why not to place too much emphasises on how to calculate betting odds

Although it’s good to know how betting odds are calculated, it’s important to note that all bookmakers will get things wrong once in a while and they put a huge amount of time into formulating their odds.

So once you are confident in knowing what do betting odds mean, you should pay attention to other parts of sports betting that could have a significant impact on your betting profits. Everything from your choice of betting markets to bonuses can play a big role in what kinds of winnings you may.

It’s also important to consider how you deposit money into a betting site in New Zealand. You might find differences in processing times between the best betting sites with credit card in New Zealand, the best betting sites with PayPal in New Zealand and the best betting sites with bank transfer in New Zealand.

Plus you might find different charges for making deposits and withdrawals at the best betting sites with Skrill in New Zealand, the best betting sites with Neteller in New Zealand, and the best betting sites with EcoPayz in New Zealand. Remember that even using best betting sites with Bitcoin in New Zealand can affect how much winnings you make with your sports bets.

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