Working out betting odds payout

Placing bets intelligently requires having a good grip on the main types of betting odds and the ability to read and interpret their various formats. The three main types of betting odds are fractional British odds, decimal European odds, and money line American odds. These are alternate ways of presenting the same odds and hold no difference in terms of payouts.

This means that the chances or the percentage probability of an event occurring can be converted and presented in any of the odds mentioned earlier. Key Takeaways The three main types of betting odds are fractional British odds, decimal European odds, and money line American odds. These types are alternate ways of presenting the same thing and hold no difference in terms of payouts.

Britsh fractional odds are the ratio of the amount profit won to the stake. These are a bit easier to work with and understand. The favorites and underdogs can be spotted instantaneously by looking at the numbers. For decimal odds, the number represents the total payout rather than the profit. In other words, your stake is already included in the decimal number no need to add back your stake , which makes its total payout calculation easier.

Donald Trump: 4. Here we can see that the bookmaker correctly priced Biden as the favorite to win the election. The higher the total payout i. In the Supreme Court gave U. It is legal in 30 states, with other states either working on legislation or not considering it.

In both cases, winners get their initial wager back in addition to the amount won. You may be a veteran bettor that wants to quickly learn when and where to use advanced betting strategies like arbing and half-point buying or selling.

Either way, these tools will help you make educated, informed decisions before placing a bet. Ultimately, these tools help you take a mathematical and scientific approach to choosing your picks , without having to actually be a mathematical genius. Many handicappers enjoy using our betting odds calculator tools. The converter calculator for odds allows you to quickly convert betting odds from American odds to fractional odds and decimal odds, which is really helpful for handicappers accessing lots of different sites and picks articles.

The parlay bet tool allows you to quickly determine your potential profit if successful. You can enter your bet amount, and the betting odds calculator will inform you of the payout your bet would yield if successful. There are plenty of odds on calculator tools and odds calculator sites online, but these sports betting calculators have a tendency to be pretty basic.

Our calculator odds tool provides advanced information to help you learn the true premium you will pay in order to help you arrive at an ideal bet amount, using American odds or other odds. Other Resources for Handicappers We are dedicated to arming sports bettors with all the tools they need as they bid to beat the books.

We offer an odds comparison tool, industry news and thousands of sportsbook reviews, allowing you to find safe, secure sportsbooks where you can bet and try out strategies like arbitrage, the Kelly Criterion and buying half-points.

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Moreover, the odds displayed by different bookmakers can vary significantly, meaning that the odds displayed by a bookmaker are not always correct. It is not only important to back winners, but one must do so when the odds accurately reflect the chance of winning.

The key is to consider a betting opportunity valuable when the probability assessed for an outcome is higher than the implied probability estimated by the bookmaker. Note that you will also receive back your initial wager if you make a winning bet. Why Does the House Always Win?

The odds on display never reflect the true probability or chance of an event occurring or not occurring. There is always a profit margin added by the bookmaker in these odds, which means that the payout to the successful punter is always less than what they should have received if the odds had reflected the true chances.

The bookmaker needs to estimate the true probability or chance of an outcome correctly in order to set the odds on display in such a way that it profits the bookmaker regardless of an event outcome. This is because the odds on display are not fair odds. The bookie has an edge built into the odds. According to a study published in the Journal of Gambling Studies, the more hands a player wins, the less money they are likely to collect, especially with respect to novice players.

That is because multiple wins are likely to yield small stakes, for which you need to play more, and the more you play, the more likely you will eventually bear the brunt of occasional and substantial losses. Behavioral economics comes into play here. A player continues playing the lottery , either in hopes of a big gain that would eventually offset the losses or the winning streak compels the player to keep playing.

It is legal in 30 states, with other states either working on legislation or not considering it. In both cases, winners get their initial wager back in addition to the amount won. The difference between the odds for the favorite and the underdog widens as the probability of winning for the favorite increases.

In this matchup, there is a big difference between the two odds, indicating a much higher probability of the Chiefs winning the game. What Are 7 to 2 Odds? With fractional odds, the number on the left expresses how much you win, while the number on the right reveals how much you need to stake. You stand to make more money on positive odds, but the chances of a win are lower. What Are Vegas Odds? Vegas odds are used in sportsbooks. American money lines are used and include a point spread and total number of points the bookmaker thinks will be scored.

This allows bettors to bet over or under the bookmaker's score, and indicate what they believe the difference in points will be. The Bottom Line If you are planning to enter the betting world, it is important to be able to understand and interpret all types of odds well. You need to be familiar with the conversions between the different formats of odds, the conversion of odds into implied probabilities, and the differences between the true chances of an outcome, as well as the odds on display.

Only then can you place a well-educated bet. If you or someone you know has a gambling disorder, please call the National Problem Gambling Helpline at , or visit ncpgambling. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.