Did you know that the gross gambling yield is over $400 billion, globally?
People are interested in betting but don’t know how live betting odds work and how to calculate potential winnings.
Betting can be a lot of fun, but it’s important to understand the basics before you start placing any bets. If you don’t know how the odds work, you could end up losing a lot of money.
But don’t worry. Keep reading because we’ve created this betting odds guide to explain how betting odds work and how to calculate your potential winnings. Once you understand the basics, you’ll be ready to start betting like a pro!
What Are Betting Odds?
Betting odds are the prices that bookmakers offer on sporting events. These odds reflect the probability of a particular outcome occurring, as well as the return that you can expect if your bet is successful.
They are often written in the form of fractions (e.g. 3/1) or decimals (e.g. 4.00), and will either be positive or negative. Positive odds indicate the amount of profit you stand to make for every $1 that you bet, while negative odds show how much you need to stake to win $1.
For example, if the odds on a football match are 3/1, this means that for every $1 you bet, you will receive $3 in winnings if your prediction is correct. If the odds are written as 1/3, this means that you need to bet $3 to win $1.
How Are Betting Odds Calculated?
Bookmakers will set their odds based on several factors, including form, head-to-head records, and injury news. They will also take into account the amount of money that has been placed on each outcome – known as the ‘weight of money’.
The weight of money can have a significant impact on betting odds. For example, if more people are backing Team A to win than Team B, the bookmaker may shorten the odds on Team A winning and lengthen the odds on Team B winning to encourage more bets on the latter.
Understanding how betting odds work is essential if you want to be successful at sports betting. By familiarising yourself with the different types of odds and how they are calculated, you can make more informed decisions when placing your bets.
What Are The Different Types Of Betting Odds?
There are three main types of betting odds that you need to be aware of: fractional, decimal, and American. Let’s look at them now in more detail:
Fractional odds are the most common type of betting odds in the UK. They are written as two numbers, separated by a slash, and represent the amount of profit you will receive for every unit that you bet. For example, if the odds on a horse race are 5/1, this means that for every £1 you bet, you will receive £5 in winnings if your horse wins the race.
Decimal odds are less commonly used in the UK but are popular in Europe. They are written as a decimal number and represent the total return you will receive for every unit that you bet. For example, if the odds on a tennis match are 1.50, this means that for every £1 you bet, you will receive £1.50 in winnings if your prediction is correct.
American odds are mostly used in the US and are sometimes known as ‘mMoneyline or ‘positive/negative’ odds. They can be either positive or negative, and represent how much you need to stake to win $100. For example, if the American odds on a basketball match are +200, this means that you need to bet $100 to win $200. If the odds are -250, this means that you need to bet $250 to win $100.
How to Read Betting Odds
Now that you know the different types of betting odds, you need to learn how to read them. This can seem daunting at first, but it’s quite simple once you get the hang of it.
Let’s look at an example:
The odds on a football match are written as 3/1. This means that for every £1 you bet, you will receive £3 in winnings if your prediction is correct. If the odds were written as 1/3, this would mean that you need to bet £3 to win £1.
As you can see, the first number (3) represents the amount of profit you will make for every £1 you bet. The second number (1) represents the amount of money you need to stake to win £1.
Now let’s look at another example:
The odds on a tennis match are written as 2.5. This means that for every £1 you bet, you will receive £2.50 in winnings if your prediction is correct. If the odds were written as 0.4, this would mean that you need to bet £0.40 to win £1.
As you can see, the first number (2.5) represents the amount of profit you will make for every £1 you bet. The second number (0.4) represents the amount of money you need to stake to win £1.
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Learn More About Live Betting Odds
Betting odds are an important part of sports betting as they indicate how likely an event is to occur and what you can win if your bet succeeds. If you’re just starting, live betting odds may seem confusing.
However, by understanding how they work and doing some research on the teams and players involved, you can pick winning bets more often than not.
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