Online Gambling Odds Explained
Odds are a very crucial part of gambling. It is very important for you as a gambler to understand and know how to use them, this is what makes a gambler successful. Online Gambling odds are used to calculate the amount of money a player gets back from winning wagers. Betting Odds also decide whether or not a wager represents good value. It also plays a very crucial role in the way bookmakers make money.
- Gambling Odds hints on how events may happen
- They tell you how much money you could win
- They are used heavily in the sporting event
- They are very important to bookmakers
What do Online gambling odds mean? For example, take an odd of 5/1. It means you need to bet 1 unit to win 5 back. 9/1 means you need 1 unit to win 9 back. There are also cases like 1/4, here, you would need to bet 4 units to win back 1. That means a $1 win on the odds of 3/1 would get you a $3 profit while a $1 win at 1/3 odds-on gets you a profit of 0.30. It represents the concept of risk/reward. The winning chance of a longer odds of 2/1 is less, while a 1/2 odds-on price could most probably happen, however, the player would need to risk double to arrive at the same return as if the longer price won.
How Probability Works
Probability means the occurrence of an outcome or outcomes. Let’s take a game of dice for example, if a player rolls a dice, only six outcomes are possible since dices only have 6 sides. If you bet that a player rolls side ‘one’, there is a 16.67% probability that the number would occur.
Types of Odds
American Online Gambling Odds
There are 3 common types of odds, which are American, UK and European. The American type is the most widely used in the US. American gambling odds work slightly differently for underdogs and favorites and are often called Moneyline Odds. In football Odds, the “+” sign is used to indicate the underdog, while the “-“sign indicates the favorite. This influences the calculation to decide the payout for both sides. Let’s see the table below for a better explanation. This is a typical sports betting example.
|Team MLS Galaxy||+120|
The signs in front determines whether placing a wager on either outcome would pay out a larger amount than the player has wagered or less money than he has wagered. The “-“sign means that the outcome is more likely to occur but placing a bet on the particular outcome would ultimately pay less than the amount wagered. The positive (+) sign means the outcome is less likely to happen and placing a bet on the outcome would pay more than the amount wagered.
Now, let’s use the example above. Using the -140, it shows us that the player needs to bet $140 to get a profit $100.
For a Negative betting odd of -110
- A $110 bet on the -110 outcome will pay out $100 in profit with a total of $210 after getting the original bet back.
- A $1100 bet on this outcome would payout $1000 with a total of $2100 after getting the original bet back.
For a Negative betting odd of -170
- A $ 170 bet on the outcome will payout $100 with a total of $270 after getting your original bet back.
For a positive betting odd of +120
- A $100 bet on the +120 outcome pays out $120 profit with a total of $220 after getting your original bet back
- A $1000 bet on this outcome will pay out $1200 in profit with a total of $2200 after getting your original bet back.
For a positive betting odd of +1500
- A $100 bet on this outcome, (+1500) pays out $1500 in profit with a total of $1600 after getting your original bet back.
British online gambling odds
These online gambling odds are popular in and around the United Kingdom. They are fractional odds and are often used in horse-racing and football (Sports betting generally). Fractional odds quote the potential total that the bettor would receive if they win, relative to their stake.
7/1 for every $1 the player bets, the player wins $7
1/1 for every $1 the player bets, the player wins $1
1/7 for every $7 the player bets, the player wins $1
Let’s put this into practice now. Take an English Premier League sports match for example. The game is between Team Arsenal (Home team) v Blackburn Rovers (Away team).
- Blackburn’s odds of winning are 6/1, so the payout is x6 if they happen to win the game.
- Place a $100 bet and it would yield a profit of $600, that is , 100 x 6 = $600
- After getting your $100 back
- The total payout would equal $700(600+100).
If the odds of Arsenal winning are 1/6, the gambler would receive a payout of $1 for every $6 bet he bets. That would be a total payout of $7. (6 x 1/6) + 6.
European Online Gambling Odds
These online gambling odds are also known as Decimal odds. They are very popular in Europe, Australia and Canada, they are steadily becoming popular outside Europe. They are mostly used in sports betting. Most online sportsbooks prefer to display their odds in this format, probably because it is easier to calculate.
In decimal odds, the figure that’s quoted is the exact amount that would potentially be paid out if the bet wins. Let’s see some examples.
7.0 would be calculated as (7.0 x $10 stake) - $10 stake = $60 winnings
|Team||Betting Odds||United States||3.40||Netherlands||2.55|
If a $20 wager is placed on the USA at 3.40, using the example above, the player multiplies the $20 x 3.40 odds which equals $68. The decimal odds include the exact amount wagered, so to get the profit, subtract the wager $68-$20 which equals $48 in potential payout.
If the player places a $20 wager on Netherlands, multiply 20 x 2.55, the player gets $51 total and $41 in profit. (51-10)
Decimal odds are simple to understand, but they are rarely used in the United States. You could log in to European betting sites to see how it works.
How Bookmakers Earn Profit
Bookmakers try to make money in losing wagers than they payout in winning wagers. Bookmakers try to avoid fair odds because they would be exposed to risk and could possibly lose profit. A Bookmaker’s goal is to amass profit on any event they place their bets on. Balanced book and Overround are crucial at this time. Online betting sites try to build in an Overground on any events they take bets on, they also possess balanced books.
It’s common for odds of sporting events to change because of the Overround and the need for a balanced book. Odds could be drastically reduced to discourage further action, especially where the bookmaker is amassing too much profit from a specific outcome. Also, the odds might be increased on other possible outcomes to encourage action they have taken so many wagers on.
Bookmakers ensure they make a profit, almost at all costs, however, it is still possible to beat them. They may not lose money overall but just try and earn more money from your winning wagers than you lose on the losing wagers. Your knowledge on gambling odds, overrun and balanced books would ensure your success.
Why You Should Try Out Online Gambling Odds
After reading this article, it is believed that you understand how gambling odds, probability, and how sports betting works. You may want to try it out because it sounds fun and could earn you some profit. At our sports betting comparison, we take you through some of our free betting articles. Sign up, it’s free! On our home page, we also link you up with genuine sports betting sites where you could win big! Take advantage of bonuses and promotions for even bigger wins. Please do not hesitate to contact our customer service agents if you need any help concerning betting. Log on to your favorite site and win!