Understanding Sports Odds
by Trevor Whenham - 05/08/2008

Here's the most simplistic but true statement I can possibly make about sports betting - understanding sports odds is a pretty important part of sports betting. You can be the best handicapper in the world, and you can pick winners with shocking regularity, but if you don't understand odds then you can't know if a bet is worth making, and you probably won't be a winner in the end. Fortunately, understanding sports odds isn't that tough once you figure it all out.

Before we look at the details of things there is one thing to keep in mind - your job as a sports bettor is to determine what you think the likelihood of something happening is and then to compare it to the odds of that event occurring. If the posted odds are better than your anticipated likelihood then you have a bet worth making, but if the odds, or the potential return on the bet, is less than the chances you give the bet of being successful then it is not worthwhile. Novice or unsuccessful bettors think that sports betting is all about picking winners, but that is only a small part of success.

In short - if you see a 'minus' symbol before a set of odds, this means that the team (or person in an individual sport) is a favourite to win. If you see a 'plus' symbol before a set of odds, this means that the team (or person) is an underdog to win.

The – and + on a sports betting line indicates both your prospective payout and whether you’re betting on the favorite or the underdog. Negative numbers signify the favorite on the betting line. The negative number indicates how much you’d need to bet to win $100. In short - if you see a 'minus' symbol before a set of odds, this means that the team (or person in an individual sport) is a favourite to win. If you see a 'plus' symbol before a set of odds, this means that the team (or person) is an underdog to win. So, let's break down some examples for you. Decimal odds are often used on betting exchanges, such as Betfair, as the user is in control of the odds rather than the bookmaker. Here are some examples of how to read decimal betting odds.

There are a number of different ways that odds can be presented, but they all come down to the same thing. Sports books assign what they think is a fair price for a particular outcome. By fair price I mean that the books try to set a price that is attractive to bettors so that they will bet on it, but not so attractive that they will get too many bets and risk losing money. Books will adjust the odds once they have been set if they are attracting too much or too little action.

Sports odds can be presented in a number of different ways, but they all represent the same thing in one way or another - the amount you will win if you make a bet and are correct. They express them in different ways, but that's the meaning.

Fractional odds - These aren't the most common in sports betting, but they are the easiest to understand so we will start here. They are used in horse racing, so if you are familiar with betting on the ponies then you know fractional odds. Not surprisingly, they are expressed as a fraction. For example, odds of 4/1 mean that you would win four dollars if you bet one dollar and were correct. The odds can be less than even, too. Odds of 1/4 would mean that you would have to bet four dollars to win one dollar. With fractional odds it is also quite simple to figure out if a bet makes sense. If the odds are 4/1 and you think that something is likely to happen once in three tries then it is a very profitable bet. On the other hand, if it were likely to happen once every five tries then you would lose money in the long term if you bet it at 4/1.

Decimal odds - These aren't used in the United States very often, but they are seen in Canada, Europe and Australia. They can also be the most confusing at first. The easiest way to understand them is to start with fractional odds. To make a conversion you take the fraction, turn it into a decimal, and add one. That means that 4/1 fractional odds would convert to decimal odds of five, and 1/4 odds would become 1.25.

Money line odds - These are by far the most common form of odds in North America for sports betting. They are expressed as numbers greater than 100, and they can be either a positive or negative number. Each one is a little bit different.

When a money line is a positive number then the odds are the amount you would win if you were to bet $100 and were correct. For example, a money line of +200 would mean that you would make a profit of $200 if you bet $100 and were correct. That's also equivalent to fractional odds of 2/1 and decimal odds of 3.

A negative money line represents the amount that you would have to bet to win $100 if you were correct. For example, a -200 money line means you would win $100 if you bet $200 and won. It is also equivalent to fractional odds of 1/2 and decimal odds of 1.5.

One of the most fundamental concepts when it comes to betting on sports is understanding how to read odds the right way. Without having a full understanding of how odds work, it is impossible to have a decent understanding of how to take advantage of some favorable odds.

People betting on sports will usually notice money line odds as the most common choice. Also known as American odds, negative and positive numbers might seem completely random at first to the uninformed. However, learning is relatively straightforward, and it becomes so much easier to identify great betting opportunities as soon as they arise.

American Sports Betting Odds Explained

A standard look at odds

Before jumping into money line bets, understanding the fundamental basics of odds is a great starting point. Odds can be used not only in betting, but just in a common discussion as well. Even coaches will refer to their team’s odds of winning, and how big of a favorite or underdog they are.

If a team has the better chance to win, they are considered the favorite. Trying to break down the odds of them winning is usually by percentage points, which can be something like a 60% chance to win, and a 40% chance to lose (in a head-to-head matchup).

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Sportsbooks start with these fundamental odds before skewing them a bit in their favor. After all, the saying goes that “the house always wins” in gambling. If one team has a chance to win 60% of the time and the other side has a chance to win 40% of the time, the actual betting lines won’t pay out precisely that way. Their goal is to set lines to get reasonably even play on both sides, making sure that they end up making a profit either way.

Looking at money lines

Money lines are based on the odds of a favorite and underdog winning, but put into terms that make sense from a money perspective. Based off of a $100 bet in most cases, people can start to get an understanding of how much they can win at any given time.

Favorites

If a person or team is the odds on favorite to win, their odds will start with a minus sign, such as -110. This is the simplest way to identify who is the favorite, but the number shows exactly how big of a favorite they are.

In the example of -110, a person would need to put down $110 to win $100. This means there is only a slight favorite, so a person gets pretty close to even odds. Specific scenarios will have overwhelming favorites in the thousands.

When there are more than two options, there is a chance that no choice is the real favorite receiving negative odds. At most, only one choice will have negative odds in a group, with everyone else labels as underdogs with positive odds.

Underdogs

Betting on the underdog is enticing to a lot of people. If they pick correctly, a person can experience a pretty big payout. The problem is, most individuals and teams are listed as an underdog for a reason. It is a huge gamble to try to pick only upsets all the time, and people have to weigh the pros and cons based off of the money line.

So, what do odds of +150 and +200 mean? A winner will receive that amount, in addition to their initial $100 bet, as the payout. If the +150 bet is a winner, a person ends up leaving with $250 in their pocket.

Some people are always set on putting money on underdogs, because there is less of a need to win all the time. It just takes a few big predictions to end up a significant winner. Betting on favorites is the safer approach, but it is a little easy to get burned if there are a slew of upsets.

Alternative betting odds

Covers Sports Betting Odds

American betting odds are used very frequently in sports all around the world, so understanding them is essential before even thinking about putting wagers down. However, there will be times where other types of odds are discovered, and having the ability to read them is also important.

Fractional Odds

Fractional odds are used a lot in European sports, and occasionally in other settings as well. The equivalent to a -110 in American odds is 10/11 in fractional odds. What is the easiest way to convert these numbers?

It is just a matter of listing them in a fractional form, and then simplifying. For favorites, take the payout amount ($100) and divide it by the amount used to place the bet ($110). Simplified, the fractional odds are 10/11.

For underdogs, flip the numbers. A +200 favorite is a 2/1 favorite using fractional odds, since $200 in winnings is divided by the $100 put up for the bet.

Decimal Odds

The use of decimal odds are still fairly scarce, and usually, they are accompanied with American or fractional odds anyway. However, figuring decimal odds out are pretty easy as well. Follow the same instructions as converting American odds to fractional odds, and then add 1.0 to the total.

Sports Betting Odds Meaning Definitions

For a -110 bet, the conversion to decimal odds would be 1.909. For a +200 bet, it would convert to 3.000. It might seem like too many added steps to some, but some betting lines have become very specified with wide ranges. Having odds out to three decimal places allows for that. It also is generally easier to use decimal odds for APIs and other digital feeds online.

Sports Betting Odds Today

Why are American odds the preferred method for most sports bettors?

With a few different options when it comes to displaying odds, why are American odds the predominant choice for most sportsbooks these days? It is considered the most precise way to put odds into terms of money. One single clear number is thought of as a cleaner way to process information than fractions or decimals.

It also encourages gamblers to put money down in easy denominations. When using $100 for a bet, a person will know exactly how much they are taking home if they win with an underdog. When betting on the favorite, the amount of money is right there for them to have to put down to win $100. Less thinking during the betting process makes it that much easier to move at a fast pace.

Conversion is also pretty easy for those who want to simply move the decimal up or down. Betting in increments of $1, $10, $100 or $1000 is all math quickly done in the head when looking at American odds. With fractions and decimals, some odds don’t translate very well at all. Try figuring out 14/5 or 12/13 odds quickly without the help of a calculator.

All in all, most seasoned bettors will ultimately have their own personal preference when it comes to odds. Online, companies are becoming more and more user friendly, doing a lot of conversions for their clients right there for them. It makes everything a little messier with so many numbers next to each bet, but at people can instantly recognize their format of choice.