The table below shows the relationship between the likelihood of an event, the different types of odds and the potential winnings on a $100 bet. If the moneyline odds are -200, the probability of the event occurring would be: 200 / (200 + 100) = 0.67 (or 67%). For negative odds, the formula is: Money line odds / (Money line odds + 100). For positive odds, the formula is: 100 / (Money line odds + 100). For example, if the American odds are +200, this means that you would win $200 if you bet $100.

Positive moneyline odds indicate how much you can win with a $100 bet, while negative odds indicate how much you need to bet to win $100. Money Line odds, or American odds, have their own way of representing probability. To calculate the odds, the formula is Denominator / (Denominator + Numerator). Fractional odds are shown as a fraction, i.e., 3/1 or 5/2. Fractional oddsįractional odds represent the potential profit in relation to the bet. To understand the implied probability (probability that the bookmaker believes exists for the event to occur) in decimal odds, the formula is: 1 / Decimal odds Example: 1 / 2.50 = 0.40 (or a 40% chance of the event occurring).

Decimal oddsĭecimal odds represent the total amount you will be paid if the bet wins, including the original stake. How to interpret betting odds and their probabilitiesīetting odds can be presented in different formats, such as decimal odds, fractional odds or money line odds, depending on the region or bookmaker. Reverence: Betting sites may offer lower odds on popular teams or players, as they know that people will bet on them regardless of the odds.This discrepancy can lead to opportunities for value bets. Betting volume: If few people are betting on a market, the odds might not accurately reflect the true probability of the event, since bookmakers often adjust them based on the volume of bets they receive.This makes theodds worse than the actual probability of an outcome occurring.

The bookmaker’s edge:Online bookmakers include a margin in the odds that ensures their profit.A value bet occurs when a punter believes that the odds of an event occurring are greater than the odds assigned by the bookmaker, thus presenting potential opportunities.Īs odds are an indication of the likelihood of an event or outcome occurring, they are influenced by three factors: However, as this prediction is never 100% accurate, there is such a thing as a value bet. The higher the odds, the less likely the event will happen.

Calculating odds sports betting