How Do Sports Betting Odds Work

Betting Basics In essence, when you are making a bet, you are depositing money with the bookmaker. If the bet is unsuccessful, the bookmaker keeps the deposited money. However, if the bet is successful. How do sports betting payouts work? Most sportsbooks in the United States use American Odds. The main signifiers of American odds is that. Decimal Odds (British).

• Sports betting lines on FanDuel Sportsbook are presented in what is called the 'American.
• Usually, we measure the chance in percentages, with the sum of all possible outcomes resulting in 100%. The best football bettors usually have outstanding odds to chance calculation and have no trouble.

If there’s one thing you know, it’s sports. You’ve been making friendly bets with your buddies for years, and almost always come up a winner. But do you really understand odds in sports betting?

Sports betting odds can be tricky to understand at first, especially since you may see the odds posted in more than one way.

From plus/minus to decimal, to fractional — how is anyone supposed to know how to place the best bets?

Don’t sweat it, we’ve got you.

In this guide, we’ll explain everything you need to know about how to understand odds in sports betting, and how you can start creating your own odds.

Understanding Sports Odds: What Are They?

So, you want to place a bet on the upcoming match but you’re not sure how to get started.

First things first, you have to understand the odds to know which bets are worth the risk. We’ll touch more on that in the sections below.

Secondly, you need to know that there are a variety of formats for which odds are displayed, such as:

• American (plus/minus)
• Decimal Odds
• Fractional Odds

All of them are easy to understand, and we’ll show you in the upcoming sections of this article.

Lastly, odds are used to calculate the implied probability of a particular outcome in any sporting event.

Once you have a solid understanding of how the odds work, you’ll be able to determine which bets offer the best payouts and how much money you are willing to wager.

Sports Odds Explained: American Odds

If you don’t know how to calculate sports betting odds, don’t worry, you’re not alone.

The most common type of sports odds used in North America is American Odds, which uses a plus/minus system for calculating payouts.

Below, we’ll answer your question: how are odds calculated in sports?

We’ll start with the American way, and give you some betting odds examples so you know exactly what you’re looking at the next time you want to make a wager.

But first, it’s important to know what odds are designed to do.

1. Odds flag potential bettors as to the implied probability of the bet
2. Odds announce the payout you could win if you bet on that outcome

However, odds can be influenced by more than the events that are relevant to the outcome of the game or match.

Many traditional sportsbooks are known for manipulating the odds in their favor and factor in how much the book is charging for you to place your bet. You may hear fellow wagerers refer to this cut as the “juice”, “vig”, or “cut.”

How Does Plus/Minus Work in Sports Betting?

When you see +130/-240 (or any other three-digit combination) you know you’re dealing with American odds.

The plus or minus indicates whether you’re betting on the favored team or the underdog.

A negative number on the betting line implies the favorite, and exactly how much you have to bet to walk away with a $100 payout.

Positive numbers belong to the underdog, and let you know how much you’ll win if you bet $100.

For example:

How Do You Understand Odds in Sports Betting With American Odds?

Using the above example, calculating your odds look like this:

To win $100 on the Vikings (favorites), you would need to wager $130. If you bet $100 on the Packers (underdogs), you’d be paid out $260 in addition to receiving your $100 bet back.

Calculating Payouts

Let’s say you don’t want to bet $100 of your money — we get it, that can add up.

Many people prefer to place a series of smaller bets on multiple games to get the most out of the experience.

Winning two and losing one can be more appealing than losing it all in one shot.

With the above example, let’s calculate the odds of betting the underdog with only $10, instead of $100.

Using the +260 odds on the Packers, a $10 bet would payout $26 in profits, plus the return of your original $10 bet for a total of $36 back in your pocket.

In most cases, the sportsbook you’re betting with will do the calculations before you even place the bet.

You’ll know the exact payout before you confirm your bet.

Calculating Implied Probability

If you’ve started to research exactly how sports betting works, then you’ve probably heard the term “implied probability”.

The odds are what suggest a particular outcome in any match, and the implied probability refers to the prospect of that outcome.

To calculate the implied probability you need to convert the odds into a percentage.

The reason you’d want to calculate the implied probability is to determine if the estimated probability of a match you wish to bet on is different from the sportsbook so that you can adjust your bet accordingly.

Remember, that all odds available at a sportsbook include the “juice” or “cut” so you’ll need to factor that in, as the implied probability of every conceivable outcome of a match is going to be above 100%.

This is called overround, and it’s the reason you should remove the “juice” from betting lines before calculating what the oddsmakers actually expect the outcome to be.

Sports Odds Explained: Decimal Odds

Of the three types of odds you’ll come across, betting with decimal odds are the easiest to learn.

Decimal style odds are typically used in Europe, but many Sportsbooks default to American odds. However, you should be able to set the preference to any betting style.

Decimal odds look like this:

How Do You Understand Odds in Sports Betting With Decimal Odds?

Calculating your potential winnings with decimal odds is easy. All you have to do is multiply the amount of money you’re wagering with the odds attached to the team you’re betting on.

For example:

Calculating Implied Probability

Calculating your implied probability is a valuable tool to determine if a wager is worth the risk.

Using our example above, we’ll determine implied probability using the following formula: 1 / Decimal odds

With the above example, the Toronto Blue Jays implied probability of winning is:

How Does Sports Betting Work

1 / 2.10 = 47.6%

And the New York Yankees implied probability of winning is:

1 / 1.40 = 71.4%

In this case, the New York Yankees have a much higher probability of winning, and therefore the safer bet… unless you know something we don’t.

Sports Odds Explained: Fractional Odds

Fractional odds are most commonly used in the UK and can typically be seen when placing bets on horse races.

They’re sort of funny looking odds, but when you understand what they mean, they are really easy to calculate.

How Do You Understand Odds in Sports Betting With Fractional Odds?

Let’s say you want to bet on a horse in the Breeders’ Cup Classic.

You open up your betting app and see strange-looking figures such as 8/3 or 1/2 (which, by the way, we would say “eight to three” or “one to two”).

So, how do you calculate these odds?

Simple.

The number on the left (8) tells you how many times the oddsmaker expects the related outcome to fail. And the number on the right (3) dictates how many times the outcome should succeed.

So, what does this mean for your pocketbook?

Calculating Payouts

Calculating your payout for fractional betting is really quite easy.

Multiply your bet by the numerator (or top number), then divide the result by the denominator (bottom number).

For example, if you place a $50 bet on 8/3 odds the calculation would look like this:

(50 x 8) / 3 = $133.33 (a total of $183.33 coming your way).

Or if you placed your $50 bet on the 1/2 odds, then the calculation would look like this:

(50 x 1) / 2 = $25 (for a total of $75 in your pocket).

Calculating Implied Probability

Figuring out the implied probability for fractional bets can be done fairly easily.

Let’s say your horse of choice has 8/3 odds on him, this means that out of 11 races (8+3) your horse is expected to win eight times. Pretty good right?

How Do Sports Betting Lines Work

Now divide the number of times he’s supposed to win by the number of races on the roster and you get your implied probability: 8 / 11 = 72.7%

Remember though, it costs money to play, so anytime you’re calculating odds, whether American, decimal or fractional,the outcomes when added together will always equal more than 100%… that’s the “vig” or the “cut” we’ve been talking about.

What is a Push?

A push — while not related to odds — can directly affect your payout so we thought it was worth mentioning here.

Being aware of the possibility of a push before you place your first bet on a sports match is important.

So, what is a push, exactly? In simple terms, it’s a tie.

You will not see a push on the moneyline when placing bets, so you need to know in advance if it’s an outcome you can bet on. Typically this only applies if you’re betting against the spread or making a totals bet.

If a push occurs and hasn’t been bet on, then you’ll just get your money back, as it’s considered neither a win nor a loss.

A point spread will usually add half a point to each number so that a push can’t happen, but that’s not always the case, so keep your eye on your bets and all possibilities of a push.

What Is ZenSports?

Now, that you know how to figure out odds in betting this is where it gets really interesting.

What Do Odds Mean

ZenSports is an online peer to peer betting marketplace that removes the need for a bookmaker, and thus the “vig”, “cut”, or “juice”.

By eliminating the bookmaker, ZenSports can charge 50-90% lower fees than traditional bookmakers do.

On top of saving a lot of money, every customer that uses ZenSports is betting against other sports bettors (not greedy bookmakers), so customers feel good knowing that they’re going up against people that are just like them.

How Do Odds And Betting Work

Create Your Own Bets and Odds With ZenSports

How does peer to peer betting work, exactly?

By eliminating the bookmaker, ZenSports has essentially created a marketplace for which every bettor plays a role in creating a fun, decentralized ecosystem for everyone involved.

Here’s a five-step overview of how the ZenSports process currently works:

1. Makers create bets. Anyone can create any imaginable sports bet they want with their own terms, payout, and wager amount.
2. Takers accept bets. Anyone can accept part of or a whole bet created by a Maker.
3. Makers submit the results of the bet outcome. To prevent a Maker from submitting false results, Makers have an escrow fee of 10% of their bet set aside in case of a dispute by the Taker.
4. Takers can dispute results. A Taker can dispute any outcome but are required to hold 5% of their bet in escrow aside to prevent the Taker from making false disputes.
5. The Marketplace resolves disputes. The Marketplace is incentivized to vote correctly because they will receive half of the losing party’s escrow amount if they vote alongside the majority of the voters. The prevailing party received a full refund of their escrow fee, along with half of the losing party’s escrow fee.

All bets are then paid out accordingly.

ZenSports is the only mobile peer to peer sports betting marketplace, where anyone can create and accept bets around the world without the need for a centralized bookmaker.

The future of online sports betting is here.

Sports betting has become a phenomenon across the world. People all around the world will put wagers on a sporting event to create more excitement around a game for themselves. Let’s face it, you wouldn’t watch a 1-10 team play a 2-9 team without placing a wager. But once the wager is in, you’re absolutely tuning in and watching every second.
Betting lines are used for sportsbooks to put a price on a certain wager. If you’re looking at a team with -150 odds to win, they’re a favorite. If it pays out, you will receive less than you put in. However, if you bet on the opposite side and take a chance with a +150 underdog, you would make more profit if the team won. Read more about Moneyline betting here.
Who creates the betting lines that are used by sportsbooks?

Most sportsbooks have in-house oddsmakers that are in charge of creating betting lines in the weeks before games, especially when it comes to Opening Day or the NFL. In baseball, the oddsmakers are required to make the lines daily as games never seem to stop in the summer with the MLB.
Years ago, the oddsmakers didn't have that much information to look at when trying to make betting lines. Now there are analytics everywhere to come up with all of the lines much more accurately.
Back then, oddsmakers would really only have box scores to look at. Now oddsmakers can look up anything and everything which gives them an advantage over the average bettor. Of course, records and things like the weather are important, but deeper stats mean so much more to oddsmakers. They’re able to develop systems to figure out exactly how much a team will score and such. You know the saying, “Vegas is always right.” Unless you follow Doc’s Sports picks. Then it’s different.
How Lines Move
When a game starts out at -3 for a team and the line changes to -2 before the game begins, that means that there’s action on the game or an injury to a key player. There are 'sharp' bettors that place a large bet on one team that forces oddsmakers to raise an eyebrow and switch the lines. An oddsmaker is always watching action to see if a change is necessary on the lines.
Popular Ways to Bet
Point spread
A point spread is a handicap where you essentially give or receive points on top of the actual outcome of the game. The spread basically looks at how a sportsbook or oddsmaker thinks about what the outcome might be. For example, in an NFL game, if the Kansas City Chiefs are -3 on the spread, the oddsmakers believe that the Chiefs will win their game by three points. If your data and analysis say otherwise, you would be on the opposite slide and gain three points from their opponent. So, if you bet on the Chiefs with the spread, you would have needed them to win by more than 3 points to cash your ticket. If the score was 27-21, Chiefs, you would win your bet. But if it was 23-21, Chiefs, you would lose because the other side gained three points and won 24-23 theoretically. Betting on spreads allows you to pick a team to win with better odds. If you were to just pick the Chiefs to win that game, you would have to lay a lot of money on the Chiefs. Picking them against the spread gives you a chance to make money near an even line.

Moneyline bets:
Moneyline bets take some stress away. With a moneyline bet, you only need your team to win the game and don’t need to worry about how much they do it by. We’ve all been there where we’ve taken a team to win by 7.5 and then a team wins by just seven. Those are the worst bad breaks and losing bets possible and not fun to endure. After the game, you’ll then wish you had been on the moneyline instead. Those absolutely sting.
The problem with money lines is that you will have to lay a lot more money on the team to win. On heavy favorites, you’re looking at putting down $300 just to win $100 on teams that are -300 American odds. If the San Francisco 49ers were -300 against the Minnesota Vikings, all you would need is for the 49ers to win the game. However, if they are upset, you’d lose $300 trying to win just $100. Heavy money lines are very scary if your team doesn’t perform like they should be or how they were projected to.
Point total bets
With totals, or over/under betting, you don’t need to worry about who wins the game. You’re worried about how many points are scored in the game. For example, if you bet over 52 points on the New York Giants against the Philadelphia Eagles, you’d want the combined score between the two teams to be more than 52 points. Therefore, if the score was 35-28, you would have 63 points and score over 52 points. If the score was 17-14, you would have a total of 31 points and the total would go under. Therefore, you would lose the wager and the bet.
You don’t only have to bet on the total for the game, but you can also bet on the team total for a certain team. If you’re not sure about one side but you love the other side, you can isolate a team and bet their team total.

Proposition bets:
Many people make their money on proposition bets. Prop bets are available for most sporting events, and you can bet anything from a team’s total to how many yards a player will rush for to how many touchdowns a player will score. Prop bets are like playing fantasy sports but with odds.
Prop bets are extremely popular during the Super Bowl, where people go as far as betting on how long the National Anthem will be. There are some ridiculous props like what color Gatorade will be poured on the winning head coach. Unless you have insight on those bets, it’s hard to have concrete analysis for that. You’re basically just trying to hit the lottery.

Doc’s Sports is offering $60 worth of member’s picks absolutely free – no obligation, no sales people – you don’t even have to enter credit card information. You can use this $60 credit any way you please for any handicapper and any sport on Doc’s Sports list of expert sports handicappers. Get $60 worth of premium members’ picks free.