How to Read Odds

What Are Betting Odds?

Betting odds are numerical representations of the likelihood of a particular outcome occurring during a sports event, as determined by bookmakers. They also indicate the potential payout punters will receive if their wager wins. Betting odds are applied to every sports event, and outcome bookmakers are taking bets on, from football to basketball, horse racing, tennis, etc.

For example, let’s say that the top team in a league faces off the team in the last position. In this case, bookmakers are likely to assign low odds to the top team winning, given their higher likelihood of success. Conversely, the opponent will have a much higher odds value. However, it is essential to note that the bookmaker’s assessment can be wrong. Their odds may not always perfectly reflect the actual likelihood of events.

Another thing you must note to read betting odds more successfully is that they can be expressed in various formats. The three main ones include American, fractional, and decimal.

What Is Probability?

Probability measures the likelihood of something happening in a sports match. It’s an integral part of sports betting and can be expressed as a number between 0 and 100. The former indicates impossibility, while the latter indicates certainty.

The good news is that you don’t need a full overview of probability to understand betting odds. Since bookies express it to the odds, you only need to place your bet. There’s no need to calculate the probability yourself.

Using Betting Odds to Calculate Probability

You can use the odds to see which outcome of a sports match is likely to happen. It will require you to convert the odds to probability expressed in percentages. For example, odds of 5 to 1 can be converted with the following formula: 1/(1+5)=1/5 or 20%. It means that the likelihood of that particular event is 20% or rather low.

If both teams or participants have equal chances, the odds would be 50:50 or 1 to 1 (evens odds). Of course, that’s still a subjective estimate. The true odds of a team or a player’s chance are different. You have to consider that bookies are out there to make money, so they always display the payout odds, not the correct odds.

Luckily, with our guide, you will learn how to easily read betting odds to understand better who you need to bet on.

Using Betting Odds to Calculate Winnings

Whether it’s boxing, football, or the NFL, you can easily calculate your winnings using the odds displayed. If you’re wondering how to do betting odds work, you’ll need to learn more about the different types of odds.

While they are not hard to understand, new bettors may be confused by all the different odds and how they work. In simple terms, they are all the same but meant for other markets. In the end, each odds represent the likelihood of a particular outcome in a sports match.

The Kinds of Odds

There are 3 different types of odds every bettor should know – fractional, decimal, and American. As we already said, they are all the same but used in various sports and regions.

To learn how to read odds in betting, you must understand what the 3 different odds represent.

Fractional Odds Explained

Most often used at UK bookies and for sports such as horse racing, fractional odds indicate the profit ratio won to the stake. Let’s say you and your friend are betting on something to make things easy for you. You’re giving your friend 5 to 1 chance on his choice – this would be displayed as 5/1 in fractional odds.

You don’t need to be an expert on how to read odds ratios to understand how these odds work. While the fractions might look complicated initially, they’re quite easy to use once you get the hang of them.

How to Calculate Winnings with Fractional Odds

Fractional odds are common in the UK and other European sports betting scenes. As its name implies, this format uses fractions to display the likelihood of an outcome during a sporting event. When you read betting odds fractions, you will find values like 2/1, 5/2, 8/11, 3/7, etc. These fractions express a punter’s potential profit from a bet against the stake required. The numerator value shows the potential amount to win should you stake the denominator value.

Betting odds with a higher numerator than the denominator (e.g., 2/1, 5/2) typically yield a bigger profit than its stake, often seen with underdog bets. Odds with a lower numerator than the denominator, on the other hand, yield a lesser profit than its stake, often seen with favorite bets.

For example, the “2/1” fraction odd expresses that for every $1 you place on a bet, you will win $2 in profits should your prediction prove true. So, if you stake $100 on such a bet, you stand to win $200 in profits (i.e., 2/1 x $100) and a $300 total payout (i.e., $200 profit + $100 stake). To read fraction odds of “2/5”, you will earn $2 in profits for every $5 you stake. A $100 stake on such a bet will only yield $40 in profits (i.e., 2/5 x $100).

How to Calculate Implied Probability with Fractional Odds

Punters can also determine the implied probability bookmakers attach to an outcome from fractional odds like the American format. To do that, you need to follow the formula:

Using this formula, the implied probability of 2/1 fractional odds is 33.0 % (i.e., 1 / (1 + 2) x 100). The same goes when you want to read odds ratio fractions where the numerator is lower than the denominator (i.e., favorite bets). The implied probability for 3/11 odds is 78.55% (11 / (11 + 3) x 100).

Decimal Odds Explained

Decimal odds are undeniably the most popular format punters and sportsbooks use worldwide. This is because the format is straightforward to work with. The decimal odds are typically expressed in decimal values, representing the payout punters will get for every unit of stake.

How to Calculate Winnings with Decimal Odds

Unlike when you read Vegas odds (aka American odds) and fractional odds, calculating winnings with decimal odds is pretty straightforward. You must multiply the decimal odds by your stake to get your potential payout.

The payout will include both the profit and stake. For example, let’s say that a soccer sports outcome is assigned 1.20 odds. In this case, you’ve got a $1.20 payout on every $1 stake. So, if you bet $100 on such an outcome, you stand to earn $120 (i.e., 1.20 x $100) in payouts. You will then get $20 (i.e., $120 – $100) in profits. If you read soccer decimal odds as 2.50 instead, you would potentially earn a payout of $250 (i.e., 2.50 x $100) in payouts, resulting in $150 (i.e., $250 – $100) in profits.

Ultimately, the higher the number of your decimal odds, the bigger the potential return, and vice versa. Also, the lower the decimal odds, the higher the winning chances of the outcome, and vice versa.

How to Calculate Implied Probability with Decimal Odds

Using decimal odds, you can also determine the implied probability that sportsbooks attach to outcomes. Calculating this with decimal odds is straightforward, unlike the other odds formats. All you need to do to read decimal betting odds for implied probability is use this simple formula:

For example, the implied probability of 1.25 decimal odds will be 1 / 1.25 x 100 = 80%. It means that the sportsbook believes the event’s outcome will likely occur. The implied probability of 2.0 odds is 50% (i.e. 1 / 2.0 x 100), while 3.50 is 28.57% (i.e. 1 / 3.50 x 100). The higher the value of the decimal odds, the lower the implied probability, and vice versa.

American Odds Explained

American odds are only used in the USA and rarely anywhere else. These are the so-called betting lines with a + or – sign in front of them. You will find these odds at American bookies, most commonly on sports such as baseball and hockey.

The negative sign indicates the favorite, showing what you need to bet to win $100 in return. On the other hand, the positive sign indicates the underdog, showing you what you’ll win for a $100 bet.

To put things into perspective, a $100 bet on a favorite with odds of -200 will give you a $50 profit for a total payout of $150. If you place a $100 bet on a +200 underdog, the profit will be double ($200) for a total payout of $300.

How to Calculate Winnings with American Odds

American odds, also known as moneyline, are the primary odds format used by bookmakers and punters in the US. While American odds may seem complex compared to other formats, they are pretty straightforward to calculate. American odds are expressed in positive (+) and negative (-) integers and revolve around $100 as a key factor.

To read American betting odds, note that positive values like +140, +180, +240, etc., are typically attached to the underdogs that are not likely to win. Plus, (+) odds tell you the potential profit you can gain on a $100 bet. For example, a $100 bet on a +140 odds will net you $140 in profits, resulting in a $240 payout. Similarly, a $100 stake on +180 odds will yield $180 in profits.

On the other hand, negative values like -120, -200, -250, etc., are often attached to the favorites; that is, wagers on outcomes with high chances of winning. These odds tell you how much money you will need to stake to win a profit of $100. For example, staking $120 on a bet with “-120” odds will yield $100 in profit and $220 in total payout. If your odds are -250, you must stake $250 to win $100.

How to Calculate Implied Probability with American Odds

Reading betting odds can also help you determine the likelihood of an outcome as given by the bookmaker. It is known as implied probability. Converting American odds to implied probability involves a tricky math equation that differs between positive and negative values.

For the positive American odds (i.e., the underdogs), the formula for implied probability is:

Using the formula, the implied probability of a +140 odds will be 41.67% (i.e. 100 / (140 + 100) x 100). Notably, the further away the positive odds are from 100, the lower the implied probability and likelihood of the outcome, according to the bookmaker.

To read moneyline bets and calculate the implied probability formula for negative American odds (i.e., the favorites), the formula is:

Therefore, the implied probability of -120 odds will equal 54.55% (i.e., 120 / (120 + 100) x 100). Similarly, the implied probability of -200 American odds will be 66.67% (200 / (200 + 100) x 100). The further away the negative odds are from 100, the higher the implied probability and likelihood of the outcome.

Types of Bets

Online sportsbooks today offer a wide range of different bet types. From the match winner and the total number of goals to unusual proposition wagers, bookmakers offer odds on almost every possible outcome in sports events.

Understanding how to read sports betting lines of the bet types you engage in is essential to improve your chances of winning.

How to Read Moneyline Odds

Moneyline is one of the most straightforward bet types in sports betting. It is the type of wager placed on a sport’s event outcome —you pick a team or player to win a given match. For example, a sportsbook provided the moneyline market in the table below for an upcoming EPL game.

After you read the sportsbook odds above, let’s say you decided to back Manchester United. In that case, you will only win if Manchester United wins the matchup, which will net you $110 profits for every $100 wagered. You will lose your wager if the game ends with a draw or Tottenham wins.

How to Read Point Spread Bets

The point spread bet is quite similar to the moneyline market. However, this bet type considers the margin of victory in a sports match. The bet assigns a spread value, which gives the underdog a goal advantage and a handicap to the favorites. For example, the table below shows a point-spread market in the NBA.

To read the point spread is quite simple —a bet on the Celtics will only win if the team beats the Bulls by more than 11 points. So, if the game ends with 124 – 97, for example, the bet will win, yielding $85 profits for every $100 wager.

How to Read Over/Under (Total) Odds

The over/under (total) bet is the market that predicts the number of goals/points during a sports event. The bookmaker will assign a benchmark value, and you will predict whether the total goals will be more or less than it. For example, a bookmaker offers the market in the table below for a La Liga game.

To read over/under odds is straightforward. A bet on “Over 2.5” will only win if the game ends with three or more goals (i.e., 3-0, 2-2, 3-2, 4-0, etc.), netting $30 profit for every $100 stake.

How to Read Plus-Minus Odds

Plus-minus odds are undeniably one of the easiest ways to identify favorites and underdogs in any betting market. As explained above, these are also known as the American/money line odds. The positive values or plus odds indicate the underdogs that the bookmakers believe have low chances of winning. To read the betting odds minus is also straightforward. They are attached to favorite bets with high chances of winning.

How to Read Odds in Different Sports Markets

As a critical basis for sports betting, odds apply to every sport and event you find on wagering sites. They determine the likelihood of an outcome from the bookmaker’s viewpoint and the potential payout from any wager.

So, let’s explore how to read these odds for various sports.

How to Read Horse Racing Odds

As one of the oldest sports in the world, horse racing is widely popular, and most bookmakers provide odds on it. To read odds in horse racing is pretty straightforward. Let’s examine an example below.

Let’s assume a bookmaker offers odds on a 6-runner flat race during the Grand National. The table below shows each runner’s odds and potential payouts on a $100 stake.

How to Read Football Odds

American football is another popular sport that gets a lot of attention in the sports betting scene, especially in the US. So, knowing how to read betting odds in football is vital. Thankfully, it works much like we have explained.

Let’s take an example of an upcoming game between the Miami Dolphins and the Kansas City Chiefs. The table below shows the odds a sportsbook offers on a moneyline market for the game and the potential payouts for each outcome on a $100 stake.

How to Read College Football Odds

There’s a lot more to American football than just the NFL. College football has also always pulled betting action, with sportsbooks offering odds on its markets and events. You need to know how to read college football betting lines to jump in on the action.

Let’s say that a sportsbook decides to provide point-spread action on a college football game between the Boston College Eagles and the Pittsburgh Panthers. The table below shows the odds and potential payouts for each outcome on a $100 stake.

How to Read Baseball Odds

Often referred to as America’s national favorite pastime, baseball is another exciting sport that gets attention from millions of fans worldwide. As a result, most sports provide odds on different outcomes of baseball games in Major League Baseball (MLB) and other competitions.

To read odds in sports betting on baseball is similar to the examples we have covered above. A sportsbook offers a division winner bet on the American League East division. The table below shows the odds and potential payout of such a market on a $100 stake.

How to Read Basketball Odds

As one of the most popular sports in the world, basketball is another sport that receives much attention from fans worldwide. As a result, most bookmakers offer bet action on the NBA and other exciting basketball leagues.

The table below shows an example of how to read betting odds in basketball for the totals market for an upcoming NBA game between the Boston Celtics and Indiana Pacers.

How to Read College Basketball Betting Odds

The college basketball format also commands massive betting action. Several sportsbooks cover various events and markets across the sport.

The table below shows how to read odds in college basketball. It contains the outlook and calculation of a moneyline market between the UConn Huskies and Houston Cougars and the potential payout for each outcome.

How to Read Boxing Odds

The world of champions, underdogs, upsets, and knockouts of boxing is another popular sport most bookmakers also offer odds on. It lets you get in on many exciting fights from boxing hotspots worldwide.

To read odds for boxing is much like the other sports we have examined. For instance, let’s say that a sportsbook is offering odds on an upcoming world title fight between Tyson Fury and Oleksandr Usyk. The table below shows the odds and potential return from the market on a $100 wager.

How to Read Ice Hockey Odds

As one of the fastest full-contact sports ever, Ice hockey is watched by millions of fans worldwide. So, it is another popular sport that sportsbooks provide betting odds markets on, especially for the NHL.

Let’s say you want to read betting odds in hockey at a sportsbook on an NHL game between the Vancouver Canucks and New York Rangers. The table below shows the odds attached to the events’ point spread market and the potential payout for each outcome should you stake $100 on any outcome.

How to Read Tennis Odds

From Wimbledon to the Australian Open, many incredible tennis competitions occur all year round. As such, tennis is another unique sport that punters pay much attention to, and sportsbooks offer odds. You must follow the basic understanding of odds to read betting odds in tennis, much like any other sport.

Let’s say that Novak Djokovic is facing off against Daniil Medvedev in a tennis game. The table below shows the odds a typical sportsbook would offer on the game and the potential payout for each outcome on a $100 stake.

How to Read UFC Odds

Like boxing, the UFC is another global sensation sport attracting millions of fans worldwide. Naturally, it has also made its way to the sports betting scene, with bookmakers offering odds on UFC bouts.

To read odds for UFC is also pretty simple. Let’s say there is an upcoming movie between Sean Strickland and Israel Adesanya. The table below shows the odds a typical sportsbook would offer on the bout and the potential return for each outcome on a $100 wager.

How to Read Odds in MMA

While UFC is undeniably the most popular MMA sport on the sports scene, it is not the only one. Many sportsbooks also offer betting odds on other MMA fights like the Oktagon, KSW, etc.

To read odds in MMA for these fights follows the same method as in UFC. For example, let’s say there is an upcoming Oktagon bout between Matej Penaz and Matthew Bonner. The table below shows the odds a typical bookmaker offers and the potential payout for each outcome on a $100 bet.

How to Read Dog Racing Odds

Dog racing is another sensation in the sports betting scene, with sportsbooks offering odds on different greyhound racing events. As a fast-paced racing sport, reading odds in dog racing typically works the same way as horse racing.

For example, there is an upcoming 5-runner greyhound race, and a sportsbook offers odds on the matchup. The table below shows the odds attached to each dog and the potential return on a $100 stake.

How Do Bookies Set Odds?

Betting platforms employ several methods to decide the odds for each match. We outline the most popular ones below:

• Statistical analysis: Bookmakers use complex statistical models to analyze the probability of different outcomes. To determine odds, these models consider historical data, team/player performance, and other statistics.
• Market conditions: Market activity around the specific event influences the odds. If many people are betting on a particular outcome, bookmakers might lower the odds to balance their risk.
• Competitor’s odds: Bookmakers often look at their competitors’ odds to ensure they are competitive. They may adjust their odds if they differ significantly from those other bookmakers offer.
• Live betting adjustments: For live betting during an event, bookies update odds in real-time based on the current score, performance, and other live factors.
• Profit margins: Bookmakers set odds that ensure they make a profit regardless of the event’s outcome. They achieve this by including a margin in the odds, making the sum of probabilities over 100%.

Betting Against the Odds

Betting against the odds means that a price is larger than even money. A player who bets against the odds will receive more money in return for their bets than the amount staked.