How Sports Betting Odds Work
Regardless of whether you prefer fixed odds betting or more complicated accumulator or parlay bets, understanding how odds work is key for your gambling experience. Here is what you need to know.
What Are Sports Betting Odds?
Sports betting odds imply the probability of a certain event happening. As a result, they play a pivotal role in determining your payout on the site – the bigger the favourite in a game, the lesser the odds and the potential payout too. For example, in a Bayern Munich vs Hoffenheim game, Bayern will be the favourites and will have smaller odds. Betting on the Bavarians will not result in a significant payout.
Different Odds Format Explained
Generally, there are three different types of odds formats across the world:
- Decimal (widely used in Europe)
- Fractional
- Moneyline
How to Calculate Your Winnings?
Calculating your winnings with decimal odds is quite simple. You just need to multiply the odds of your event with your bet amount. For example, if you have placed a €30 bet on Bayern to beat Hoffenheim with odds of 1.25, as well as Dortmund to beat Augsburg with odds of 1.45, the calculation goes as follows:
- 1.25 x 1.45 x 30 = €54.37
The Role of Probability in Betting Odds
Bettors can easily convert decimal odds into implied probability and see the chance a bookie gives for a certain outcome. The formula goes as follows:
- Implied Probability (%) = 1 / decimal odds × 100
To find good betting odds, you need to practise the concept of “value betting”. It explains a scenario where you believe a true probability is higher than what the bookie has set in its implied probability.