How Betting Odds work
If you’re a bookie or a newbie thinking of setting up your own PPH sports betting site, you need to know how betting odds work. Understanding this will enable you to maximize your revenue while also enticing gamblers to your site. Perhead.cr brings you the lowdown on everything you need to know about how betting odds work.
There are three main betting odds, fractional odds, decimal odds, and moneyline odds. Which ones you use will often depend on where you or your clients are based. These odds are essentially the same, and there is no difference in payout, just they are displayed in different ways. In short, they all represent the percentage of probability that a certain event will occur.
This is how Betting Odds work
Fractional odds
Otherwise known as the British way of doing things, fractional odds typically use a / or a – when displaying the odds in question. They can also be described as “four-to-one” or “five-to-two”. They’re used by the biggest bookmakers globally and are one of the most widespread methods you will see. A fractional odd of four-to-one (4/1 or 4-1) would mean if the player bets right, they would win $4 for every $1 they wager, as well as getting the original bet value back. For example, if you bet $10 and were right, you would receive $40 plus the $10.
Decimal odds
Decimal odds, or European odds, are widely used across Europe, Oceania, and Canada. They are often considered a bit easier than fractional odds as it is easier to spot which are the favourites, or least favourites, without having to do any maths. With decimal odds, the number signifies the amount the player wins for every $ they put down. Additionally, the stake is already included in the decimal, so you don’t need to add it to your winnings. For example, if you bet on Kanye West winning the 2024 US elections and the odds were 4.00, you would win $400 if you put a $100 bet. If you were to bet on President Biden with a 1.3 odd, and he won, you would win $130. You can clearly see that here, Biden is the favourite as there is less money paid out if he wins.
Moneyline odds
Moneyline odds are the most widely used form of odds in the US. They typically use a – sign that suggests the amount you need to bet to win $100. In the case of underdogs, a + sign is present, which indicates the amount you would win for every $100 you bet. Both scenarios include the repayment of the original wager. For example, in a basketball game between the Chicago Bulls and Boston Celtics, if the bookie offers odds of +586 for the Bulls and -760 for Celtic, you can see the bookie thinks Bulls are less likely to win. If you are prepared to risk $100 on the Bulls, you could win around $586, plus the original $100. Should you bet on the favourite, Celtic, you’d have to bet $760 to win just $100, a total of $860.
What odds you offer on your site will depend on your audience. Some bookies will look at providing different types so players can toggle between them depending on their preference. If you are a gambling entrepreneur and want to know how betting odds work, why not contact Perhead.cr? We have decades of experience in online gambling and can help you get your perhead betting site up and running, with the odds you want to offer, in just a matter of moments. To find out more, contact us here!
