We encounter this word often in betting. But just what are odds? Odds could mean the ratio between the amounts staked by the parties to a bet, based on the expected probability either way and could also mean the chances of something happening or being the case.
Sports betting odds however, indicate a team’s chance to win. There are three types of odds.
- Decimal/European odds
- Fractional/UK odds
- Moneyline or American odds.
Decimal or fractional odds are the most common. There is no monetary difference between the 3 types as they are simply ways of displaying the odds.
Decimal odds are widely used across the world. They are much easier to understand, as you simply have to multiply the value of your stake then you will get the total payout.
An example of a decimal odd is - 3.45 & 2.50 on betPawa
Fractional or UK odds say how much you should win, relative to the wager, and are mostly used in horse racing. Simply put, it’s how much you will win/How much you stake.
If you stake 1 shilling at 10/1, you will win 10 shillings. Note that the 10 shillings is your profit as If you stake 5 shillings at 5/2
Fractional odds aren't very popular especially on mobile sports betting.
They also aren't very popular on mobile sports betting. Nonetheless, American odds work differently for the underdog and the favorite. For the favorite, the odds express how much money you need to risk for you to win 100 dollars.
If the odds are -170, then it means you have to bet 170 dollars, to win 100 dollars. Your total payout shall hence be 270 dollars
For the underdog, the odds express how much money you would win if you risked 100 dollars.
If the odds are +400, if you bet 100 dollars, your total payout will be 500 dollars.
Finally, while it's important to understand the odds, how they work and the different odds, it is important to understand how to covert the odds, and we shall discuss this in the next article.