Betting odds

Betting Odds

Betting odds are a numerical expression, typically represented as a pair of numbers, used in both gambling and statistics to reflect the likelihood of a particular event occurring. The odds are used to calculate the payouts in a wager. They can be expressed as positive or negative numbers, fractions, or decimals.

Types of Betting Odds

There are three main types of betting odds: fractional, decimal, and American (also known as moneyline odds).

Fractional Odds

Fractional odds are popular in the United Kingdom and Ireland. They are represented as a fraction, such as 5/1 or 5-1, and are used to calculate the potential profit from a bet. The denominator represents the amount bet, while the numerator represents the potential profit if the bet is successful.

Decimal Odds

Decimal odds are popular in Europe, Canada, and Australia. They are represented as a decimal number, such as 2.00, and are used to calculate the total payout from a bet (stake plus profit).

American Odds

American odds, also known as moneyline odds, are popular in the United States. They are represented as a positive or negative number. A positive number indicates how much profit a bettor will make from a $100 stake, while a negative number indicates how much a bettor needs to stake to make a $100 profit.

Calculating Payouts

The method for calculating payouts depends on the type of odds. For fractional odds, the payout is calculated by multiplying the stake by the odds, plus the original stake. For decimal odds, the payout is calculated by multiplying the stake by the odds. For American odds, the payout is calculated differently for positive and negative odds.

Betting Odds and Probability

Betting odds also reflect the probability of a particular outcome. This is calculated by dividing 1 by the decimal odds. However, this does not account for the bookmaker's margin, also known as the overround.

See Also

• Sports betting
• Bookmaker
• Gambling mathematics
• Probability