How to Read Betting Odds

If there’s one thing you need to understand before venturing into online sports betting, it’s how to read betting odds, the numerical foundation that decides how much money goes into your pocket after a win.

Trying to bet on sports without understanding odds is like reading a book in a language you’ve never seen before. However, we’ll teach you that language so you can learn all about the importance of odds, from the key differences between American, decimal, and fractional to helpful tips to find the best odds for any game.

Betting Odds Explained

At their core, odds are just a sportsbook’s estimation of the probability of a particular outcome, with a little bit extra thrown on top to keep a solid profit margin.

And, depending on where you are in the world, sportsbooks will display the odds a little differently. Now, let’s break down the three primary ways you’ll see odds displayed online and how to read them.

American Odds

American odds are a common way to represent betting odds in the United States. They can be either positive or negative. Positive odds (e.g., +150) indicate the potential profit on a $100 bet, while negative odds (e.g., -200) indicate the amount you need to bet to win $100.

For example, consider you place a moneyline bet on the New York Yankees to win with American odds of +150. If you wager $100 on a team with these odds and they win, you would receive $150 in profit, plus your initial $100 bet is returned.

Decimal Odds

If you want to know how to read odds in European countries, then decimal odds are what you need. Decimal odds are unique because they are expressed in terms of your total return, not just profit, offering the most direct way to see your funds. This means that a +200 bet in American odds would be 3.00 in decimal form by adding the initial wager (1) with the winnings (2).

Let’s look at another example. Say you bet the over on total goals in an NHL game and end up winning. Assuming a $100 bet at odds of -110, your decimal odds would be 1.91.

Fractional Odds

If you want to learn how to read sports odds in the UK, you’ll need to understand fractional odds. As the name implies, fractional odds are expressed as a fraction, with the first number representing potential profit and the second number representing the initial bet.

For instance, if you come across fractional odds of 5/1 on a soccer futures bet for Inter Miami to win the MLS Cup, a $100 wager would yield a profit of $500, plus your original $100 stake.

Do Odds Directly Affect Payouts?

The key to understanding bet odds is recognizing just how important they are to your overall profit lines. Alongside the amount you wager, odds are the only other factor that directly affects payouts and the only one that’s not in your control.

This is why learning how to interpret betting odds is one of the most important things you can do as a beginner. By taking your time to find the sportsbook with the best odds, utilizing the right bonuses and promotions, and analyzing each game you want to bet on, you’ll give yourself the best chance possible of increasing your payouts.

What’s the Juice?

In the world of sports betting, understanding “the juice” or “vig” is crucial. It represents the sportsbook’s way of ensuring they make a profit on every bet. Let’s take an example from the NBA to explain this concept.

Imagine you want to place a bet on an NBA game with even odds, expressed as -110. In this case, the sportsbook takes a 10% vig on your wager. If you bet $100 and win, you’ll receive your $100 back plus $90 in profit. The $10 that’s missing is the sportsbook’s profit, or “juice.”

In essence, the vig is the sportsbook’s built-in margin to ensure they don’t lose money, making it important to consider when evaluating betting opportunities.

What is Implied Probability?

A crucial part of how to read betting lines, implied probability is simply the chance of each outcome in a bet occurring based on the given odds. To calculate the implied probability of a bet, divide the amount wagered by the potential payout for each option.

Let’s say there’s an NFL game between the Kansas City Chiefs and the Detroit Lions, with the moneyline odds at -230 for KC and +190 for the Motor City. Assuming a $100 bet, the implied probability for each result would be:

100/143.48= 69.7%

100/290 = 34.5%

Notice that the total probability added up is over 100%. This is because of the juice, and that extra few percentage points represents the sportsbook’s profit margin. So remember, implied probability is not the actual probability of an event happening, just those reflected by the odds.

Underdogs vs Favorites: Plus/Minus Odds

In sports betting, understanding the distinction between favorites and underdogs, often denoted by plus/minus odds, is fundamental. Let’s clarify this with two examples—one from NBA over/under betting and another from NFL moneyline betting.

First, let’s consider an NFL matchup where the New York Giants have odds of -200 to win. Here, the minus sign signifies that the Giants are the favorite. If you bet $200 on the G-Men and they win, you’ll receive your $200 back plus $100 in profit. Conversely, if you bet on their opponent, the New York Jets, at +150, you’re backing the underdog. A $100 bet on the Jets would yield $150 in profit if they win.

Now, imagine an NBA game with an over/under line of 220 points. If you bet the over, represented as -110, it means you’re wagering that the total points scored by both teams will exceed 220. In this case, since the odds are at -110 for either the over or under, the minus does not represent the favorite but rather an even matchup with the juice factored in.

How to Calculate Potential Winnings

Now that we know how to read Vegas odds, it’s time to count our possible winnings.

Calculating potential winnings is fairly easy. One quick rule you can memorize without any number crunching is that if your odds are positive, you’ll win more than the value of your initial bet, with negative odds donating winnings that are less than your initial value. To calculate the exact amount, here are the two simple formulas you can use.

Negative Odds: (100/Odds) x Wager Amount

Positive Odds: (Odds/100) x Wager Amount

For example, a $50 bet on -200 odds would net you $25 (100/200 x 50) and that same $50 bet at +200 odds would earn you $100 in profit (200/10 x 50).

Odds and Ends

So, we know how to read odds, calculate probability, and add up our potential winnings, but what else is left? Well, there are a couple of scenarios that we haven’t covered yet which can lead to some unique outcomes. Read on to learn about Pick’Em and Push bets, where odds work a bit differently.

What is a Pick’Em Bet?

A Pick’em bet, often seen as “PK” or “PK’em,” is a type of wager where both teams or players are considered equally matched, resulting in even odds. In this scenario, there’s no clear favorite or underdog.

You’re essentially picking the winner without any point spread or handicap involved. If you bet on either side in a Pick’em and they win, you receive your initial stake back plus an equal amount in profit.

What is a Push in Sports Betting?

A push in sports betting occurs when the final margin of victory or the final score of a game lands exactly on the point spread or over/under line set by the sportsbook. In such cases, neither side wins the bet, and wagers are typically refunded.

For example, if the point spread is -7, and Team A wins by exactly 7 points, it’s a push, and all bets are voided, with bettors getting their money back.

Finding the Best Odds

When it comes to sports betting, not all odds are created equal. To maximize your potential returns, it’s crucial to scour different sportsbooks for the most favorable odds. Each bookmaker may offer slightly different lines for the same event, so comparative shopping is your ticket to better profits.

Always make sure to browse the top sportsbooks, including FanDuel, DraftKings, and BetMGM, for the best lines. These platforms are celebrated for their competitive odds and extensive betting options.

Lastly, stay informed about any late-breaking developments that could impact odds, such as injuries or lineup changes, and be ready to act swiftly when you spot advantageous lines.