Sports odds are one of the most important concepts within betting. Understanding how they work is essential to succeed in them.
Sports betting is one of the most popular forms of gambling worldwide, however, it is important to understand the concept of sports odds before placing any bets.
In this article, we will explain how odds work in sports betting and how they are used to calculate potential winnings.
See also our articles on the best bookmakers that offer the best odds for their bettors.
What are sports odds?
In sports betting, odds represent the possibility of a certain result occurring.
They are expressed in different formats depending on the location and type of betting market, but the most commonly used types of odds are American odds, decimal odds and fractional odds.
Odds are used by bookmakers to calculate the potential win on a bet. The relationship between the two is inversely proportional, ie, the lower the odd (eg 1.2), the greater the probability of happening, so the lower the potential gains. On the other hand, when the odd is higher (e.g. 2.2), the lower the probability, but the higher the winnings, if the result happens.
- Application of sports probabilities
Sports betting odds are determined based on the assumption of a certain outcome occurring. This is determined by taking into account various factors such as the previous performance of the team or player, current physical condition, injuries and other relevant information.
Bookmakers use this information to determine the odds of each possible outcome. The more likely an outcome is, the lower the odds offered by the bookmaker. On the other hand, the less likely an outcome is, the higher the odds offered by the bookmaker.
You have to know how to do the right kind of analysis in order to have a good outcome, because those who do better analysis and follow the betting market, are more likely to get better results.
Fortunately, within the free content of the academy you can find content related to analysis and prognostics.
Types of sports betting odds
There are three main types of odds used in sports betting: fractional ,decimal and American.
- Fractional Odds
Fractional odds are most commonly used in the UK and Ireland. They represent the profit a punter would make on a successful bet, with the original bet returned.
For example, if the probability of the team winning is 3/1, this means that a bet of £100 would result in a profit of £300 (£100 x 3) plus the original bet of £100, for a total payout of £400.
- Decimal Odds
Decimal odds are most commonly used in Europe, Australia and Canada. These odds represent the total return a bettor will receive if they win, including their initial bet.
For example, if the probability of the team winning is 2.50, it means that a bet of £100 would result in a total payout of £250 (£100 x 2.50).
- American Odds
American odds are expressed with a plus or minus sign and are most commonly used in the United States. The negative number represents the favourite team or player, while the positive number represents the underdog.
For example, if you see odds of +200, it means you could potentially win £200 on a bet of £100. On the other hand, if you see -150 odds, it means that you will have to bet £150 to win £100.
Sports odds within the betting markets
When it comes to understanding odds, it is important to know that they reflect the likely occurrence of a particular outcome. For example, if a bookmaker lists the odds of a certain team winning a game as 2/1, they are essentially saying that they believe the team has a one in three chance of winning.
It is also worth noting that different betting markets will offer different odds on the same event. When it comes to placing a bet, you should always consider the odds in conjunction with your own assessment of the possibility of the given outcome. This is known as the 'value' of the bet.
If you believe the odds offered are greater than what you believe to be the true probability of an event occurring, then it may be a good value bet to make. Conversely, if the odds are lower than what you believe to be the true probability, it may be wise to avoid the bet altogether.
- Applying sporting odds in practice
- Choose the market: Decide on the market you want to bet on, e.g. correct score, above or below, or the handicap bet, which are usually the most popular.
- Check the odds: Once you have chosen the market, you must check the odds offered by the bookmaker. The higher the odds are, the lower the possibility of the result occurring.
- Calculate your potential winnings: To calculate your potential winnings, you need to multiply your bet by the odds offered. For example, if you want to bet €10 on a team to win at odds of 2.5, your potential winnings would be €25 (10 x 2.5).
- Place your bet: Once you have calculated your potential winnings, you can place your bet. Simply enter your stake and confirm your bet.
It is important to remember that odds can change quickly, especially in live betting, where odds are updated in real time based on the current result and other factors. So, make sure you check the odds regularly and only bet on what you are most comfortable with.
Furthermore, it is essential to understand that odds are not a guarantee of winning. It is crucial that you do your research, analyse the statistics, and make an informed decision before placing a bet.
- Some of the most common types of markets in betting
Match result: This is the most common and simplest market. Bettors predict the winner of a game, match, or competition.
Over/Under: This market predicts whether the total number of goals, points, or runs scored in a match will be above or below a certain number set by the bookmaker.
Handicap Betting: In this market, the bookmaker gives one team an advantage over the other to level the playing field.
For example, if a team is considered to be favourites, the bookmaker may give them a -1.5 handicap, which means they have to win by at least two goals for a bet to pay out.
Both Teams Score: This market predicts whether or not both teams will score in a match.
Correct Score: This market predicts the exact final result of a match.
The impact of sports odds on betting decisions
Understanding odds is crucial when making betting decisions. Odds represent the chance of having a certain outcome and therefore impact how much of a return a bettor can make.
Bettors who understand the odds and are able to accurately predict outcomes are more likely to make a profit. However, it is important to remember that no bet is guaranteed, and even the best sports bettors sometimes lose.
It is also important to consider factors other than odds when making betting decisions. These include a team's performance history, the players' physical condition and the weather conditions, as well as other details to consider. Punters who take these factors into account in addition to the odds are more likely to make accurate decisions.
You can access our daily statistics to learn how to improve your odds.
Implied probability - what does it represent?
Implied probability represents the possible occurrence of a given outcome, according to the probabilities. It is calculated by dividing 100 by the probabilities.
For example, if the odds of a team winning are 2.50, the implied odds are 40% (100/ 2.50 = 40%). Implied odds can be a useful tool for bettors to determine whether a bet offers value or not.
If a bettor believes that the probability of an outcome is greater than the implied probability, then the bet can be a good value.
For example, if a team has odds of +150 to win a game, the implied probability is 40% (100/(150+100) = 0.4).
If a punter believes that the team has a 50% chance of winning, then the bet may be good value as the implied probability is less than the punter's estimated probability.
It is important to note that the implied odds are not always an accurate representation of the true probability of an outcome occurring. It is simply a reflection of the odds offered by the sports betting.
Finally, punters who are able to more accurately estimate the probability of an outcome are more likely to find value bets.
In short, odds are a fundamental element in sports betting. They represent the possibility of a certain outcome occurring in a sporting event and are used to calculate the potential winnings in a bet.
Understanding how odds work is essential to succeed in sports betting, starting with understanding the different types of odds used in different parts of the world, including American, decimal, and fractional odds.
Other factors are equally important to have more accuracy in a sports odd. These include past betting history, team performance, physical and weather conditions of the players and game, among others.
If you want to learn more about sports betting, analysis and get access to a sports betting course, register with the betting academy and start learning today!
✅ How many types of probabilities are there?
✅ What factors should I take into account for a more favourable outcome?
✅ What is implied probability used for?
