Odds are central to all sports betting, indicating both the likelihood of an event occurring and the potential payout.
Knowing how to read, compare, and interpret odds is essential for strategic betting.
What Are Odds?
Odds are numbers assigned by bookmakers to each possible outcome of a sporting event. They reflect both:
- The estimated probability of an event occurring
- The potential profit you can earn if the bet wins
Not sure what all the betting terms mean? Visit our sports betting glossary for quick definitions of common phrases you’ll encounter.
Basic Formula:
Potential Profit = Stake × Odds
Types of Odds Used
Decimal Odds (European format) – the most common
This format is used in France and many other countries.
Example: An odd of 2.00 means that for every €1 staked, you win €2 (€1 stake + €1 profit).
Fractional Odds (UK format)
Primarily used in the United Kingdom.
Example: 5/1 means that for every unit staked, you gain 5 units of profit (plus your stake).
American Odds (+100, -150, etc.)
Less common in Europe, they are mainly used on US sites.
How to Interpret Odds
The lower the odds, the more likely the bookmaker considers the event to occur. Conversely, the higher the odds, the more uncertain the outcome, but the higher the potential payout.
Examples:
- Odd 1.30 → very likely event, but low payout
- Odd 2.00 → balanced event (50/50)
- Odd 4.50 → unlikely event, but high payout
Converting Odds to Probability
To find the implied probability of a decimal odd, use this formula:
Probability (%) = 100 / Odd
Example Calculations:
- Odd 2.00 → 100 / 2 = 50%
- Odd 1.50 → 100 / 1.5 = 66.67%
- Odd 4.00 → 100 / 4 = 25%
This method allows you to compare your own analysis with that of the bookmaker.
Why Compare Odds?
Not all bookmakers offer the same odds for the same event. Comparing odds allows you to:
- Optimize your potential profits
- Spot a “value bet” (an undervalued betting opportunity)
- Better understand market trends
In Summary
Sports odds reflect both an estimated probability and a potential payout. Learning to read them, convert them into percentages, and compare them is a crucial step in advancing your sports betting strategy.
If you’re just starting out, make sure to check our beginner’s guide to getting started with sports betting—it pairs perfectly with what you’ve just learned here.
