Have you ever wondered exactly how sports betting sites dish out their winnings? The word “odds” is thrown around a lot, but there is quite a lot to learn about how odds are made and what the numbers mean. To get you started, here is a quick intro to sports betting odds.
ODDS VERSUS PROBABILITY
Try not to mix up the probability of a certain outcome with the odds of that outcome. As an example, all the teams in the NFL have an equal probability of winning because they are 1 out of the total number of teams. On the other hand, they don’t have equal odds of winning because some teams have better players, a greater reputation, or a better record than other teams. As the season continues, the odds can change dramatically. When it reaches time for the Superbowl, each team has a 1 to 1 probability of winning, but the odds of each outcome will almost certainly not be even.
HOW DO ODDS WORK?
Odds are set by the bookies of each different online sport betting websites. It all depends on how much they are willing to pay out for a certain outcome. Higher odds mean higher payouts while lower odds bring lower winnings. The trade-off is that higher odds are much more difficult to predict and will therefore carry a higher risk of losing. An even bet is considered the safest outcome of any bet, and will give the bettor double their winnings.
Higher odds = higher risks = higher winnings.
Some betting sites offer better odds when they are newer to attract more bettors to their site. This is a common tactic that is usually very effective.
ODDS FOR NEW SPORTS BETTING SITES
Depending on who the betting site caters to, the way odds are listed can be different. US betting sites use the moneyline system, UK sites use the fractional system, European sites use the decimal system, and some Asian countries use their own separate systems.
- Even bets with moneyline: 100
- Even bets with decimal: 2.0
- Even bets with fractional: 1/1