Knowing inside out the odds in sports betting is notable for an operator’s success. This guide will inspire you to convey the odds, their types, and how they can be calculated for the targeted players. Besides, it will help you build trust and maximize player engagement.
Understanding Odds in Sports Betting
In simple words, odds display the possibility likely to occur in an event. Along with that, you will know about the winning amount if it takes place. Similar to analyzing whether the stocks will go up or down having a clear idea about the odds is crucial before placing the bet in the sports betting world. In the coming part of the guide, you will study in-depth the different types of odds in sports betting.
Exploring Odds Formats in Global Sports Betting
Dive into this section to uncover the fascinating world of odds formats in the iGaming industry:
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Decimal Odds
One of the simplest betting odds in the sportsbook is the decimals. Just like the name, they are displayed in decimal numbers that desire the potential payout for every $1 bet along with the original stake. To understand it better, you can check out the example given below:
Let’s take the decimal odds for the forthcoming baseball match:
Team Chicago: 2.75
Team Philippines: 1.45
Now, if you bet on Team Chicago and the outcome gets in their favor then you will get a winning amount of $2.75 which will include your $1 bet along with the profit of $1.75. In parallel, if you bet on Team Philippines then you will receive $0.45 as profit along with the $1 that you bet in the beginning.
Here is the formula that you need to use while calculating the potential profit: “Multiply your stake by the decimal odds and then subtract it from your original stake”. This means that if you bet $100 on Team Chicago at 2.75 odds then your potential profit will be:
Potential payout = $100 x 2.75 = $275
Potential profit = $275 – $100 (original stake) = $175
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Fraction Odds
Another medium of illustrating odds in global sports betting is in fractions such as ¼, 3/1, etc. In these odds, the numerator displays the profit gained while the denominator showcases the amount betted. Let’s understand this type for the coming baseball match with the following example:
Team Rogers: 3/1
Team Fedders: 1/4
Now, if you bet $1 on Team Rogers, then your payout if the team wins the match will be $3 along with $1 (bet amount) making the total of $4. On the other hand, if you bet on Team Fedders, it means that for every $4 you bet, you will get a profit of $1, if Team Fedders wins the game. The total payout will be your actual stake of $4 plus the profit of $1 which is $5.
It’s a little difficult task to understand them in theoretical words, the formula that will help you calculate your profits is:
Stake* (numerator/denominator)
Let’s create a scene where you bet $20 on Team Rogers, as per the formula your potential profile will be:
20*3/1= 60/1= $60 (Ensure that you add $20 to the payout making the total of $80).
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Moneyline Odds
Last but foremost, moneyline odds A.K.A. American betting odds are a little difficult to understand as they are indicated with either (+) or (-) signs before them. To know why, we’ve to follow the concept of favorites and underdogs.
Positive Moneyline Odds (Underdogs)
When you get to see a positive number next to a team or an outcome like +150 or +275, they are referred to as underdogs. The number tells the potential profit you will make if you bet $100.
Below is an example that will make you come across these odds in sports betting:
If Team A is listed at +200 moneyline, then this means that they are the underdog. If you bet $100 and they win the game then you will receive a total payout of $300 ($100 your bet along with $200 profit). The bigger the positive number, the bigger the potential payout if the team wins the game.
Negative Moneyline Odds (Favorites)
In contrast, if you see a negative number next to a team or an outcome like -110 or -250, they are called favorites. The number displays the amount you need to risk to win at least $100.
Here is an easy-peasy example of negative moneyline betting odds in the iGaming industry:
If Team X is listed at -150 moneyline odds, they are referred to as favorites. To win $100, you have to take the risk and bet $150. If the hard work pays off and the favorites win the game, then you will get your $150 back along with an additional $100 making the total of $250.
Mastering the Math of Sports Betting Odds
Now you’ve learned how to read these odds, but ever given a thought about who sets them for you? Well, it’s a complicated process that includes lots of data and calculations. Sportsbooks and bookmakers take the responsibility of setting them up. Here are certain factors that are considered before setting them up:
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Probability Assessment
The first step that is part of calculating them is guessing the possibility of the outcome that is going to take place. It takes place after studying in-depth about team stats, injuries, home-ground advantage, and other components.
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Market Forces
The bookmakers try to get an idea about the initial response from the public. In case, the response is heavily off-balance, they give their best shot by adjusting them and making a balance that means low risk.
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Vig or Juice
Simply understand vig or juice as the commission earned by the bookmaker. They earn commission by setting betting odds at little worse values than true probability would dictate. This overground makes them on edge to make a profit in of long run.
Wrapping Up…
To become a long-term player in this industry, it’s important to be aware of the types, calculations, and how to convert odds in sports betting. As this market keeps on growing, it’s giving lots of new opportunities to new or seasoned operators.
