Making Sense of Odds

Understanding the different formats and types of Odds is an important subject for successful Sports Bettors. There are three main formats: moneyline odds, fractional odds and decimal odds. Each type of odds shows the probability of an event occurring and the potential return on investment in different ways. 
 

Moneyline odds are presented as positive or negative numbers. Positive numbers calculate the potential profit on a $100 bet and negative numbers represent the wager required to win $100.

Positive Moneyline: The amount you can profit on a $100 bet. (+150 means a $100 bet could win $150).

Negative Moneyline: The amount you need to bet to win $100. (-200 means you need to bet $200 to win $100). 

Fractional odds are presented as a fraction indicating the potential profit relative to the bet. The numerator represents the profit, and the denominator represents the bet amount.

• Fractional odds of 2/1 means you can win $2 for every $1 wagered plus your initial bet.
• Odds on Favourite: Fractional odds that are less than 1/1 where the potential profit is less than the original bet.
• Odds against situation: Fractional odds that are greater than 1/1 where the potential profit is more than the bet.

Decimal Odds, also known as European odds, are the potential return in a decimal format including the initial bet. The odds indicate how much profit one can earn for every unit wagered.

Formula: Potential Payout = ( Bet) times (Decimal Odds)

• Decimal odds of 2.00 means that for every unit wagered, a total return of 2 units will be won including your initial bet. 
• Decimal odds lower than 2.00 calculate the amount potentially won for every unit wagered.
• Decimal odds higher than 2.00 indicate potential profit that is more than double the original bet. 

Choose the format that you find easiest to understand or that is the most common in your region or preferred sport. Consider which format makes it easiest for you to understand potential payouts. Decimal odds directly show the total amount returned for every unit wagered, fractional and moneyline odds require additional calculations.

U.S. Sportsbooks: If you're using American-based betting platforms, you'll encounter moneyline odds commonly used for sports like NFL, NBA and MLB. 

International Sportsbooks: If you're using international online sportsbooks you are likely to encounter decimal odds more frequently.

 Decimal Odds: Commonly used in Europe and Global online betting platforms. Decimal Odds are convenient for quick calculations of potential payouts and easy to understand for beginner Sports Bettors.

Fractional Odds: are common in the UK and still used in by traditional bookmakers especially in horse racing.

Moneyline Odds: Most used in the United States, moneyline odds are prevalent in betting on point spreads and totals.

Choosing between moneyline, fractional and decimal odds ultimately depends on personal preference and context of your betting experience. It is essential to make informed betting decisions interpreting and converting these and increasing potential returns. Having a solid understanding of these odds formats is fundamental to Sports Bettors of all levels.