Depending on where you are in the world, betting formats are worth reckoning. America, Europe, the UK and the rest of the world all adhere to specific gambling arrangements. Regardless of whether you’re betting from a sportsbook, casino or any other form of gambling, betting odds are a mechanism players need to get grips with. Understanding what and how odds work enables punters to make smart betting decisions.
Players also need to be able to interpret different betting formats, which helps with playing on various markets. There are 3 common types of odds. The fractional odds are British, decimal odds are used in Europe, and the money line odds are American. All of these are alternative ways of displaying the same odds while the payouts remain the same regardless of the format.
How Fractional Odds (British) Work
Also known as “traditional” odds, fractional odds are favoured amongst British and Irish bookmakers. As suggested in the name, fractional odds are written with a slash (/) or hyphen (-). According to TBS, a fractional log of 8/1 (8 to 1) equates to a player winning £8 for every £1 wagered. This means that the fraction is a ratio amount of the profit won to the first wager.
In other words, you will get your £1 stake, including your profit of £8, which adds up to a payout of £9. So if you stake £20 at 8/1 and win, you receive £180 ( £160 profit + £20 stake). Let’s look at the following examples of three teams that are most likely to win a championship and their odds, Golden State Warriors with 13/5, Boston Celtics with 9/2 and Phoenix Suns with 7/1.
An easily noticeable fact is that the Golden State Warriors are the favourites. With Boston Celtics and Phoenix Suns having longer winning odds. You can win £13 countered against every £5 you bet on Boston to be the victors. In the meantime, the less probable option would be winning £9 against every £2 stake you put for Boston Celtics.
Applying the formula to the examples above would result in a profit of £260 (£100 x (13/5), add the initial stake amount of £100 to the profit of £260, and the total payout you would take away is £360 if you bet on Golden State Warriors to win. If you bet on Boston Celtics, you would win a total payout of £550 and £800 if you bet on Phoenix Suns.
How Decimal (European) Odds Work
Also known as “digital” odds, decimal odds are used in continental Europe, Australia, New Zealand, and Canada. They are simpler to apply and understand. The numbers instantly reveal the winners and the underdogs.
The decimal odds number stands for the portion one wins for each £1 wagered. It also stands for the total payout as opposed to the profit, which makes it unnecessary to add your stake as it’s already included in the decimal number.
Following is an example showing the odds of two presidential candidates using the above formula. Rangers:14.00, against Celtic: 1.3. The numbers tell you the amount you could win for every £1 you put at stake.
So if you wager £100 for Rangers to win the match, you could take a total payout of £400 (£100 x 4.00). The payout total includes the initial stake, making up a net profit of £300. Same as if you successfully placed a £100 bet on Celtic; you would win £130 (£100 x 1.3). Minus the initial bet (£100), the net profit earned here is £30.
How Money Line Odds (American) Work
Americans prefer money line odds, where odds for favourites get a minus sign (-), showing the amount needed to bet to win £100. In comparison, the odds for the underdogs include a positive sign (+) and display the amount won for every £100 staked. Either way, players receive their initial stake plus the won amount.
For example, the bookie offers the Brooklyn Nets odds at +585, which shows a lower probability of 15%, that the Nets will win the game. You’d have to risk £100 on the team to potentially win £585. If the Nets win, you get a payout of £685.
Otherwise, if the bookie logs Milwaukee as having a higher winning probability, and the odds are at -760, you’d have to bet £760 to win £100. Should the team win, you would walk out with £860.
