Master the fundamentals of betting odds. Learn how to read different formats, calculate probabilities, and identify value opportunities in the betting markets.
Betting odds represent two key pieces of information: the probability of an outcome occurring and how much money you can win if your bet is successful. They are the foundation of all sports betting and understanding them is crucial for making informed decisions.
Odds are set by bookmakers based on their assessment of how likely an event is to happen, plus a built-in profit margin (called the "overround" or "vig"). This means odds don't just reflect true probability – they also include the bookmaker's edge.
Lower odds = Higher probability = Lower potential winnings
Higher odds = Lower probability = Higher potential winnings
Decimal odds are the most common format worldwide and the easiest to understand. They show your total return (stake + profit) for every unit wagered.
Fractional odds show the profit you'll make relative to your stake. They're traditionally used in the UK and Ireland, especially for horse racing.
American odds use positive and negative numbers to show favorites and underdogs. They're primarily used in the United States for sports betting.
Implied probability converts odds into a percentage, showing what the bookmaker believes is the likelihood of an outcome occurring.
A value bet occurs when you believe the true probability of an outcome is higher than what the odds suggest. This is the key to long-term profitable betting.
Value betting requires accurate assessment of probabilities, which comes with experience, research, and statistical analysis. Even value bets can lose – the goal is long-term profitability.