How are sports betting odds calculated?

To comprehend gambling odds, all you need to know is the better odds you could obtain, the more cash you will win if your gamble is successful. Though not all sites provide their odds in a similar format, and it can be hard to compare them across different platforms. So when it comes to calculating sports gambling odds, it's essential to familiarize yourself with all the systems.

How are sports betting odds calculated?

Betting odds are all about expressing the probability of an event-occuring. If the probability of an event occurring is high, then the odds of that event are lower than the other outcomes. For example, if team A is more likely to win, then the odds placed on team A will be less than a draw or team B winning.

How are the odds expressed?

Odds can be expressed in fractional terms as well as decimal terms. Here, we take a look at both and how to better understand them:

1. Fractional Odds

Fractional odds are the customary format used in the United Kingdom, though decimal odds are gradually taking over. Calculating possible profits and payouts with this arrangement can be a little complicated to start with. However, the basic principle is not as complicated as it may seem. As with money line odds, fractional odds show how much one can possibly profit from a wager.

As the name proposes, these odds are shown as a fraction. A simple instance is 3/1, which is supposed as "three to one". 5/1 is held as "five is to one". With 3/1, you could win three units for each unit wagered, and with 5/1, you could win five units for each one unit wagered. 1/1 is even cash, so you can win one unit for each unit staked.

2. Decimal Odds

Decimals are fractions expressed after division in a whole number with decimal units. Because it's easy to understand and apply, decimal odds have gained popularity in sporting events such as football, hockey, etc. in the recent past, in Asia and across the globe. To calculate your winnings, you need to multiply how much you're going to stake into the odds for that outcome. You would also need to subtract your initial wager to calculate your total profit.

For example, the odds on team B winning are at 5.00 and team A winning is at 1.25. If you place a wager of $10 on team B, and should you win, your total will be calculated as 5.00*$10 = $50. To calculate your total profit, you subtract your initial wager, which is $10, which would be $50-$10 = $40.

How to profit by accurately reading odds?

One of the main mistakes new bettors make is blindly gambling on the favorite (or desired outcome). Just because a team is a clear favorite, doesn't continually mean that they make for a smart or otherwise valuable bet. The key to smart gambling is understanding the dissimilarity between odds and value.

Bookmakers set odds that imitate public opinion. However, sometimes, the public view is wrong. Smart betters distinguish that knowledge is power; the more information you have, the better. Therefore, you can tilt the odds in your favor while betting on sporting events if you're capable of correctly predicting the result of sporting events.