Steven has over a decade of experience as a writer and editor, specializing in crypto and sports betting. Throughout his career, he has contributed to major publications and now writes for Sportscasting, where he leverages his deep understanding of blockchain technology and the betting industry to deliver insightful and engaging content.
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David has over 25 years of experience as both a writer and editor within the betting/newspaper industries, working with major publications such as The Guardian, Racing Post and Sky Sports Racing. With a diploma in sub-editing and law, and the author of four books, David now shares his knowledge with SportsCasting as a successful sports editor, writer and tipster.
All posts by David Myers‘How do betting odds work?’ is a fairly common question these days, so our team have taken the time to break down arguably the most important part of online sports betting for you.
Betting odds are there to help show you what your potential payout will be, as well as indicate the favorites and underdogs. We’ll get into even more detail below, including “How do betting odds work plus minus?” at American sportsbook apps in no time at all.
How Do Betting Odds Work?
If you have never placed a sports bet in your life, then you may first be interested in learning how do odds work in betting. Simply put, sports betting odds are used to show you how much money you can win if your bet is successful. They also give you an indication of how likely an event or specific outcome is to happen, like a team winning, a player scoring, or the total number of goals in a match. Plus, there are multiple different odds representations, but the 3 most commonly used are American moneyline, fractional, and decimal odds (European odds). Each is favored by different regions.
The lower odds displayed will indicate who the favorite is. The payout will be better for an equal chance bet on the underdog at higher odds. It’s easy to work out once you understand the odds you are working with. So, now that you know the answer to “How do sports odds work?” let’s check out how you can calculate them.
Calculating Betting Odds
Before we can have betting odds explained to you, you need to know how to calculate betting odds. In fact, understanding the math behind them makes the whole process of learning how betting odds work much simpler. Whether you’re wagering on moneyline bets or an intricate parlay, the higher or lower odds are calculated in a way that determines your potential payout. For example, a bet on a -200 favorite at lower odds means you need to bet $200 to win $100, while a +150 underdog at higher odds means you would win $150 on a $100 bet.
In addition to moneyline odds, you’ll come across other types of betting markets, like player props or parlays. These markets involve betting on specific sporting events or outcomes within a game. The odds displayed for these types of bets can vary widely, so working these out yourself can be tough, which is why using a betting odds calculator is a good idea at times.
How a Betting Odds Payout Works
It’s important to know how to read betting odds as they determine your potential payout. This is what is known as implied probability. Implied probability is basically an indicator of how likely an event will happen based on the odds set by the sportsbook/bookmaker. For example, if a gambling site was to offer odds are -200, the implied probability is around 66.7%. On the other hand, odds of +200 imply a probability of 33.3%.
Another important concept to having sports odds explained is the vigorish, or “vig,” which is a crypto betting site‘s commission. It’s built into the odds and is the way that these top sportsbooks largely make their money. For example, if a bet has odds of -110, you’re betting $110 to win $100, and the bookmaker keeps the $10 as their vig.
| US Odds | Decimal Odds | Fractional Odds | Implied Probability | Profit to $1 |
| -1000 | 1.010 | 1/100 | 1% | $0.01 |
| -900 | 1.111 | 1/9 | 10% | $0.11 |
| -800 | 1.125 | 1/8 | 11.11% | $0.12 |
| -700 | 1.143 | 1/7 | 12.5% | $0.14 |
| -600 | 1.167 | 1/6 | 14.29% | $0.17 |
| -500 | 1.200 | 1/5 | 16.67% | $0.20 |
| -400 | 1.250 | 1/4 | 20% | $0.25 |
| -300 | 1.333 | 1/3 | 25% | $0.33 |
| -250 | 1.400 | 2/5 | 28.57% | $0.40 |
| -200 | 1.500 | 1/2 | 33.33% | $0.50 |
| -150 | 1.667 | 2/3 | 40% | $0.67 |
| -130 | 1.769 | 13/10 | 43.48% | $0.77 |
| -120 | 1.833 | 6/5 | 45.45% | $0.83 |
| -110 | 1.909 | 10/11 | 47.62% | $0.91 |
| +100 | 2.000 | 1/1 | 50% | $1.00 |
| +150 | 2.500 | 3/2 | 40% | $1.50 |
| +200 | 3.000 | 2/1 | 33.33% | $2.00 |
| +300 | 4.000 | 3/1 | 25% | $3.00 |
| +500 | 6.000 | 5/1 | 16.67% | $5.00 |
| +1000 | 11.000 | 10/1 | 9.09% | $10.00 |
How to Read Betting Odds
To know how to read odds in betting, you need to know how each of the main types of odds works. Let’s check out each of them as an example as well, which will also help you to better understand the answer to “How do betting lines work?”.
American Odds
So how do betting odds work? Well, let’s start with reading American odds. These odds are displayed in the U.S. (as you can tell from the name) and show you how much you need to bet to win a set amount or how much you can win if you bet a certain amount.
The positive odds are just the potential profit on a $100 bet that you place, whereas negative odds show how much you need to bet for you to be able to win $100. For example, +350 means that a $100 bet wins $350, while -350 means you would need to bet $350 to win $100.
Fractional Odds
Fractional sports betting odds are most commonly found in the UK, and they show you the potential profit relative to your stake in the form of fractions.
For example, if you see British odds of 16/1, that means that for every $1 you bet, you could win $16 if the bet is successful. Fractional odds are actually one of the easier odds to learn for those of you who are just starting out with sports betting.
Decimal Odds
Decimal odds show the total amount you would receive for every $1 wagered, including your initial bet. For example, if the odds are displayed at 4.00, you would receive $4 for every $1 bet, which includes your original stake. In our opinion, decimal betting odds are just as easy to grasp. They’re also widely used as European odds, plus Canada, and Australia.
How US Moneyline Odds Work
As we mentioned before, Moneyline odds are the most common type of odds that you can find in the US and most of North America. That said, it’s important to understand both the positive and negative odds meanings.
- Positive Moneyline Odds: This shows you what your profit on a $100 bet will be.
- Negative Moneyline Odds: This shows you what you will need to bet to win $100.
As we said before, to learn how to read sports betting odds, you need to understand Moneyline odds as well. Plus, it’s also good to know what factors influence these odds. For example, if a star player gets injured, the odds for their team might shift dramatically.
Types of Betting Odds and Markets
New betting sites are not limited to odds used in traditional markets like moneyline, spread, and totals. Different types of markets and higher or lower odds are used across a variety of events. For example:
- Racing: In horse racing, tote pool betting odds are commonly used. These odds fluctuate depending on the amount wagered on each horse.
- Sports: During March Madness and post-season for the major leagues, you’ll find bracket betting options as well as future bets on who will win the championship.
Each sport offers unique markets with different odds structures, which can affect the way bettors approach their wagers.
Five Betting Odds Strategies
- Shop for the Best Odds: Take your time. Look around at different betting sites. Compare their odds on the same markets.
- Understand Implied Probability: Understanding live betting odds means understanding implied probability. Have a firm grip on this before you start.
- Focus on One Sport: Bet on the sport you know best.
- Bet on the Underdogs: Throw in a bet on the underdogs at times.
- Keep Track of Line Movements: See how odds change up to the day of an event.
Money Management Using Betting Odds
Now that you know the answer to “How do odds work in sports betting?”, let’s look at how to manage your funds while betting at an offshore sportsbook.
- Set win and loss limits: Cap your with maximum daily win and loss limits.
- Set aside what you can afford: Look at your finances, and set a strict budget.
- Decide how many bets to place: Look at the fixtures for the day/week to determine how many bets you want to place.
- Track your bets: Always keep a record of your results.
- Use the right betting strategy: Pick the right strategies for the right sports.
How Do Betting Odds Work FAQs
How do betting odds work in sports?
What does + mean in betting?
What do negative odds mean?
What is a betting odds calculator?
Is the moneyline positive or negative?
