Odds are the backbone of sports betting, and every successful punter understands how important it is to calculate them correctly. Today we will look at how odds work, how to calculate them and what you need to consider to find the best odds for betting.
What are betting odds?
Betting odds are a numerical expression of the probability of a particular outcome of an event. They allow you not only to predict the odds, but also to determine the possible profit from the bet. The higher the odds, the lower the probability of the event and, accordingly, the higher the winnings. Let’s take a closer look at what types of odds are used.
- Decimal odds (European). The simplest and most popular format, for example, 1.5, 2.0, 3.0. To calculate the winnings, simply multiply the bet by the odds. If the bet is 1,000 USD and the odds are 2.0, your winnings will be 1,000 USD* 2.0 = 2,000 USD;
- Fractional Odds (British). These represent the probability as a fraction, for example, 3/2 or 5/1. The value of the fraction shows the ratio of the winnings to the bet amount. If the odds are 3/2, you will get 3 units for every 2 bets placed;
- American odds. These are indicated by positive and negative numbers. A positive number, for example +200, shows the amount of profit for a bet of 100 units. A negative number, such as -150, indicates the amount of bet needed to make a profit of 100 units.
How sports betting odds work?
Bookmakers calculate betting odds based on the probabilities of events and include a margin (commission) to ensure profit. Here’s how it works:
- Probability determination. The bookmaker estimates the odds for each outcome. For example, if a team has a 50% chance of winning, the odds will be around 2.0. The higher the probability, the lower the odds, and vice versa.
- Adding Margin. To make money on bets, bookmakers add margin to the odds, reducing the possible winnings for the player. This is an obligatory part of any betting company’s work.
- Odds adaptation. Odds can change depending on the volume of bets, weather conditions, team composition and other factors. The more information that becomes available, the more the odds can change.
Finding the best odds in sports betting
In order to place a bet for maximum profit, it is important to find the best odds. Here are a few ways to do this:
- Compare offers. Different bookmakers may have different odds for the same event. Use aggregator services to see the best offers;
- Study the bookmaker’s margin. Some bookmakers add a high margin, which reduces your potential winnings. The lower the margin, the more you can earn;
- Keep an eye on changing odds. Odds can change, especially before major events when there is more information about the teams or the condition of the players. Catching the best time to place a bet can make it more profitable;
- Use analytics platforms. Many professional bettors use special services that display odds for different bookmakers, analyze the profitability of bets and have predictions for outcomes.
How to avoid common mistakes?
Some players neglect important aspects, which can lead to losses:
- Ignoring the bookmaker’s margin. It reduces your winnings – take this into account when calculating;
- Betting on emotions. Avoid betting under stress or after a loss;
- Insufficient comparison of odds. The difference in odds may seem insignificant, but it affects your long-term winnings.
Odds in sports betting are an important tool for calculating and selecting strategies. Understanding how they work and how to calculate them gives you an edge over other punters.