Betting Odds Explained

For someone new to the world of sports betting, it can be incredibly confusing to try and read the odds and lines on a betting slip. Understanding the odds is crucial to making intelligent sports bets.

Types of Odds
There are three ways sports betting odds can be displayed. Decimal Odds are most popular in the UK and Canada, Fractional Odds are preferred in most other regions of Europe, and the United States depicts its odds on what are called American style betting odds.

Decimal Betting Odds (UK)
Decimal odds are displayed as decimal numbers that show exactly how much your wager is multiplied by, and paid out, for a win. The amount of the payout will include your original bet’s return.

For example, if the odds are 6.2, and you’ve wagered $100, the return would be $620.

6.2 x $100 = $620

Now to find your actual profit margin - If you subtract your original wager from this amount, you would find your total profit to be $520.

(6.2 x $100) - $100 = $520

Fractional Betting Odds (EU)
Fractional odds are very similar to decimal odds except that the amount to be awarded is shown as a fraction rather than a decimal. Another difference is that the odds do not include your original wager’s return, but rather the profit margin alone.

For example, if the fractional odds are 4/1 (spoken aloud as “4 to 1”), you would win $4 for every $1 you wagered. If you add the two numbers together (4 + 1), you get the total amount returned for each $1 wagered (including your original bet returned).

A $100 bet at 4/1 odds would return $500.

(4 + 1) x $100 = $500

American Betting Odds (US)
American odds are a bit different, and can look rather confusing to the unseasoned sports bettor. American odds are either shown as a negative or positive number. If the number is negative, the bettor must pay more for a bet than he stands to win, while a positive number means a higher payout than his original wager.

If the number is negative, it is the amount you must bet to win $100. If the amount is positive, it is the amount you’ll win for a $100 bet.

So, if the American odds are -100 or +100, you would win even money ($100 win for a $100 bet). The negative or positive nature does not matter if the American odds are 100, because it requires a $100 bet to win $100 either way.

If the odds are -1,000, you would need to bet $1,000 to win $100. If the American odds are +1,000, a $100 bet would win $1,000.

Another way to look at it – since fractional odds are generally much easier to understand – is to convert to fractional odds.

Since the idea of American odds is to see to reference a $100 bet, or $100 win, we can convert to fractional odds of 100/???, or ???/100.

American odds of -400 would convert to 100/400 fractional odds, while American odds of +400 would become 400/100. Note how the 400 moves from left to right on the fraction depending on its negative or positive nature.

That can be farther broken down to 1/4 odds or 4/1 odds, the first paying $4 for every $1 wagered, the second paying $1 for every $4 wagered.