Betting odds are the core of any betting or gambling experience and something that can be tricky to figure out when you are getting started. Between the confusion of different odds information and the complexity of certain bet types, it can be hard to keep the odds straight.
Thankfully, getting the hang of betting odds is actually quite easy once you understand how the ratio works and where you can turn to find accurate odds for each kind of bet. But how do odds work, and how are you supposed to use them to judge which bets are worth making?
What Are Odds?
In simple terms, betting odds are the ratio between what the bookie and the bettor has staked on an outcome. 10:1 odds means that a winning bet will earn ten times the original stake but also that the bookie believes that the winning outcome has a one in ten chance of happening (at most).
Odds are usually based on how unlikely an outcome is. The less likely something is, the more you will earn from a winning bet, but the more likely you are to lose instead.
This is the basis of all odds in betting, regardless of the type of betting you use or the events that you are betting on. Odds are the bookie’s stake compared to your own, based heavily on past data that projects a certain chance of your bet being the winning outcome.
How do Odds Affect Winnings?
In most cases, odds are effectively a multiplier since they show the bookie’s stake compared to your own. 2:1 odds means that a win would earn you twice as much from the bookie if you win, whereas 4:1 means four times, and so on.
This can go to absurdly high levels, such as bets of 80:1 or more for very specific or unlikely outcomes (such as a specific player getting the winning goal in the World Cup). However, if you get lucky enough actually to be correct, you will win that multiplier of your original stake.
Odds become more complicated if you are placing multiple bets that overlap or using betting strategies that use different bets to cover for other losses. However, in a vacuum, it is easiest to see odds as a mark of how unlikely but profitable something would be.
How Do Bookmakers Calculate Odds?
Odds are calculated through predictions of whether or not something is likely to happen, usually using large amounts of hard data. Of course, nothing is ever guaranteed, and that is why unlikely bets can sometimes come true or near-guaranteed bets can end up being a loss.
In a lot of cases, odds are calculated based on how often the same thing has happened in the past, but that does not mean that the odds are directly linked to this chance. Different bookmakers may choose to offer different odds for the same exact bet.
Bookmakers may bet for or against a specific outcome, but there is not much of a functional difference to the people placing the bets. In some cases, they may offer 1:1 odds, usually if an outcome seems completely even or irrelevant to the larger and more profitable betting odds.
Remember that not all odds are going to be scaled up evenly, too. It is entirely possible to encounter 7:3 odds, meaning that every $3 wagered would return an additional $7. This is usually due to fractional odds: the chances of something happening have been calculated to a smaller fraction.
This means that more complex bets can sometimes require some extra math to figure out. For example, 7:3 implies a 30% chance of winning but is forced to use a more complex fraction due to the specific way that bets work when they are being handled by bookmakers.
Some odds are also presented as decimals, which you can easily calculate by multiplying them by 100. For example, 1.20 odds are actually a 120% return on the amount wagered, meaning an extra 20% on top of your original wager.
Decimal odds use a different system for calculating probability, but the idea is the same – the higher the number, the less likely it is. 1.00 is the baseline, with 2.00 being a 50% chance of winning, 4.00 being a 25% chance, and so on.
How Important Are Odds?
Odds are a very varied part of how betting works, but they are also core to placing a bet in the first place. Even informal bets, such as wagering $50 with a friend on whether or not something happens, are technically falling under 1:1 odds if you are both wagering the same amount of money.
Understanding the basics behind odds is important to knowing which bets you are comfortable making, especially if you are new to betting. It is easy to gravitate towards the higher numbers for the biggest returns without realizing that high numbers also mean more risk, for example.
Odds might not be the most important part of forming a bet (betting strategies are often a top priority for long-time bettors), but you can’t ignore them. Understanding them is invaluable, doubly so if you are looking into more complex kinds of bets.
If you are getting into betting, you need to understand how to read odds. While there can be any number of specific systems through which odds are filtered or betting methods that you might use to pursue them, odds remain a constant part of understanding your betting options.
Where Can I Find Odds?
While betting sites and platforms often have their odds in full view, that only applies to that platform. This means that it can seem a bit difficult to keep track of the odds being offered by various bookies since each platform might have vastly different odds for the same event.
Third-party sites like www.bettingodds.com/us exist that provide up-to-date news on various betting odds, making it a little bit easier to catch odds that you would otherwise have missed.
These can be an invaluable resource for finding great odds as a brand-new betting fan.
Of course, betting is something you should handle at your own pace, especially if you are new. Slow down and take your time to understand how different odds impact your chances of winning – it never hurts to be careful.
