If you are new to the world of betting, understanding how betting odds work should be one of your first steps. Knowing how to read odds is important because it enables you to gauge the likelihood of an event occurring and what your potential winnings might be. Initially, odds may seem complicated, but don’t worry! We’re here to help you with this beginner’s guide to betting odds.
In betting, odds represent the ratio between the amounts wagered by different parties. Therefore, if the odds are 3 to 1, this means that the first party, which is typically the bookmaker, has wagered three times the amount bet by the second party, also known as the bettor.
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What is Probability?
Understanding probability is essential when it comes to betting. Essentially, probability is the likelihood of an event occurring. In betting terms, it’s the likelihood of a certain outcome happening. For instance, in a game of rolling a dice, there are six possible outcomes. If you bet that the person rolling the dice will get a ‘one’, the probability of that happening is 16.67%. So, the probability of an event happening determines your chances of winning your bet.
How to use Betting Odds to Calculate Probability
Understanding how to calculate the probability of an event is important when betting. Fractional odds, which are two numbers separated by a trailing slash, can be used to determine the probability of an event happening. For example, 4/1 can be written as A/B. To calculate the probability, use the following formula: Probability (%) = B / (A+B).
Let’s take a look at some examples:
- 9/1 can be calculated as 1 / (9 + 1) = 0.10, which means there is a 10% chance of the event happening.
- 4/1 can be calculated as 1 / (4 + 1) = 0.20, which means there is a 20% chance of the event happening.
- 1/1 can be calculated as 1 / (1 + 1) = 0.50, which means there is a 50% chance of the event happening.
- 1/4 can be calculated as 4 / (4 + 1) = 0.80, which means there is an 80% chance of the event happening.
Now that we know how to calculate probability using fractional odds, we can figure out potential winnings.
Calculate Winnings with betting odds.
To calculate potential winnings from a bet, you can use betting odds. Let’s use the same examples as before and replace the numbers with letters, where 4/1 is represented as A/B. Essentially, for every value of B that you bet, you will win A plus your stake.
- 9/1 means for every ₱1 bet, you will win ₱9.
- 4/1 means for every ₱1 bet, you will win ₱4.
- 1/1 means for every ₱1 bet, you will win ₱1.
- 1/4 means for every ₱4 bet, you will win ₱1.
What are Decimals and how do they work?
When it comes to exchanges like Betfair, decimals are more commonly used compared to fractions, but major betting sites do offer the option to view odds in this format. Decimals are considered to be easier to work out than fractions. To calculate your winnings, use the following formula: winnings = (odds * stake) – stake. Here are some examples:
- 9.0 can be calculated as (9.0 * ₱10 stake) – ₱10 stake = ₱80 winnings.
- 4.0 can be calculated as (4.0 * ₱10 stake) – ₱10 stake = ₱30 winnings.
- 2.5 can be calculated as (2.5 * ₱10 stake) – ₱10 stake = ₱15 winnings.
- 1.25 can be calculated as (1.25 * ₱10 stake) – ₱10 stake = ₱2.50 winnings.
Betting Example with Odds
Let’s take a quick example of a bet on a football match to help you understand how touse betting odds to calculate your potential winnings. If you were backing Arsenal to beat Liverpool 2-0, you might see the odds of that outcome at 4.0 (decimal) or 3/1 (fractional).
To calculate your potential winnings, you can use the following formulas:
- For decimal odds: winnings = (odds * stake) – stake
- For fractional odds: for every ₱1 you bet, you win ₱X (replace X with the numerator) – to calculate your winnings, multiply your stake by the numerator and divide by the denominator, then subtract your stake from the result.
So, for a stake of ₱10:
- 4.0 can be calculated as 4.0 * ₱10 stake – ₱10 = ₱30 winnings
3/1 can be calculated as for every ₱1 you bet, you win ₱3, so for a ₱10 stake, you win ₱30. Remember, you will also receive your original stake back.
- You can also use a bet calculator to help you calculate your potential winnings.
Decimal Odds Vs Fractional Odds
There is no one way that is better than the other when it comes to decimal and fractional odds, but there is a trend towards using decimal odds. Traditionally, fractional odds have been more commonly used in the Philippines, particularly at racecourses and in high street bookmakers. There are two main differences between these two types of odds.
Firstly, decimal odds are generally easier to understand. This has led to a movement to attract more people to horse racing by making it more accessible to the average punter. A decade ago, if you were going to place a bet with all the odds would be displayed in fractional format. Now, they are largely shown in decimal format.
The second difference is that fractional odds only represent winnings and do not include the returned stake, while decimals do include the stake. The transition from fractional odds to decimals largely began with the growing popularity of betting exchanges such as Unibet and Ladbrokes.
It can be difficult to slightly adjust odds without creating large fractions with the fractional format. These large fractions can be challenging for the punter to compute and are not an effective way of displaying odds.
Convert Betting Odds Into Your Favourite Format
If you prefer a certain format for betting odds, you may sometimes need to convert them to understand them better. Our odds converter tool can help you do just that. It allows you to see odds in your preferred format and even provides information on the likelihood of the selection to win.
What Are Good Odds?
There is no definitive answer to what good odds are, as it varies from punter to punter depending on their preferred betting site. Good odds also depend on the betting market and some bookmakers may offer better value for certain selections than others.
Generally, good odds are considered to be the ones that provide the best value for your money. As a bettor, you want to maximize your potential profits from a bet, so if one bookmaker is offering relatively low odds on a selection while another is offering significantly higher odds for the same outcome, then the latter represents good odds as it provides better value for your money.
Basketball Odds Explained
Basketball is a highly popular and fast-paced sport enjoyed by people worldwide, with the NBA being the most widely-followed basketball league. The NBA has gained a significant following among gambling enthusiasts as well as devoted fans.
One of the main reasons behind its allure is the simplicity of its rules, making it easy for anyone to understand. Additionally, the game’s high-scoring nature keeps gambling enthusiasts engaged until the very end of the match. Furthermore, the diverse range of betting markets available in basketball makes it an attractive option for both experienced and novice gamblers alike.
Horse Racing Odds Explained
Understanding horse racing odds is relatively easy, but we have provided a few examples to help those who are less experienced. For instance:
- 3/1 – For every 1 unit you bet, you will receive 3 units if you win (plus your stake).
- 11/2 – For every 2 units you bet, you will receive 11 units if you win (plus your stake).
9/4 – For every 4 units you bet, you will receive 9 units if you win (plus your stake).
Horse racing odds can be displayed in either a fraction or decimal format, depending on the punter’s preference. In horse racing, there is always a favorite, and it will have the shortest odds compared to the rest of the field. The favorite is also marked with an “F” next to its odds so that punters who are unfamiliar with horse racing can easily identify it.
Football Betting Odds Explained
Football is a popular sport for betting, and with matches happening frequently, there are many betting markets available on leading betting sites. To get the best value for their money, punters must find the best football betting odds. It’s important to note that not all bookmakers have the same betting markets available, so it’s worth looking around to find potential value within the odds offered by different betting sites.
Here are some popular types of football bets that can be placed with most leading bookmakers:
- Match Bets – This is the most popular type of bet, where you predict the outcome of a certain match. It’s worth checking different bookies for potential value within the betting odds offered.
- Bet Builder Bets – This feature is popular as it allows punters to combine multiple selections on the same event to form a single bet. There can be potential value within the odds for this type of bet.
- Player/Team Props – This is a newer type of betting market that focuses on statistical-based bets, where punters wager on players or teams to have a certain statistic during a match. Not all bookmakers offer this type of market, but it can provide value for punters.
- Accumulators – This type of bet is popular among punters, with the prospect of winning a sizeable amount. The best betting sites for accumulator betting offer accumulator boosts, which give punters a bonus amount added to the original potential returns of the bet.
- In-Play/Live Betting – This is an area where punters can find value for their money, especially if they have accounts with different betting sites. Betting markets aren’t priced at the same odds across different bookmakers, and scenarios can change frequently during a football match, so bettors who act quickly can find value.
During the World Cup, expect in-play/live betting to be a major feature, with almost all games attracting a large TV audience.
What is Vigorish?
Vigorish, commonly known as “vig” or “juice,” is the commission that bookmakers charge for accepting bets. Bookies create an overround, or “the house edge,” by adjusting the odds to ensure they make a profit regardless of the outcome. They also try to balance their books by encouraging equal bets on both sides of the wager.
To illustrate this, let’s say there is an NBA game between two teams, and the odds of both teams winning are 2.00. If each team attracts bets worth ₱5,000, the bookie will have to pay out a total of ₱10,000, leaving no profit margin. So, to make a profit, the bookie will reduce the odds to around 1.90, which means that if each team attracts bets worth ₱5,000, the bookie will only pay out ₱9,100. The difference of ₱900 represents the vigorish.
It’s important to note that the vigorish is not a separate fee or charge but is incorporated into the odds, and it’s how bookmakers make their profit. Knowing about vigorish is crucial for bettors as it helps them understand the true odds and calculate their potential profits accurately.
In Summary
Betting odds are a representation of the likelihood of an event occurring and they allow you to determine the amount of money you stand to win if your bet is successful. For instance, if the odds are 4/1, you would win ₱4 for every ₱1 you bet. The probability of this outcome happening is 20%, which is calculated by dividing 1 by the sum of 4 and 1, resulting in 0.20.
