Ready to learn to bet like a pro?
The single most important skill you need to develop as a bettor is an understanding of betting odds. Nothing else comes close.
For those looking for tips on betting on sports, there are few better ones than:
Understand betting odds – odds are a bettor’s best friend. The difference between a random punt and a smart bet.
Once you understand how odds work, you’ll be able to quickly spot value bets and make the right call.
Stick with it. It’s one of the most valuable things you’ll learn about betting.
Table of Contents
- What Sports Betting Odds Actually Mean
- Breaking Down The Three Main Odds Formats
- How To Calculate Your Potential Winnings
- Reading The Market Like A Pro
What Sports Betting Odds Actually Mean
Sports betting odds do two things.
First, they show you how much you’ll win if you make a successful bet.
Second, the odds you see are the bookmaker’s way of telling you how they think a match will go.
Here’s the thing, though…
Odds are not random. They are based on probability of a particular outcome occurring, but they’re also constructed in such a way as to make the bookmaker money.
In fact, 1 in 5 Americans will make a sports bet in any given year. And with the US sports betting market set to process nearly $143 billion in wagers in 2024 alone, the interest is exploding.
The problem?
The vast majority of punters don’t understand the odds that they’re betting on.
Sports odds are your key to finding value in a market. When you’re reading online betting offers and tips, your first step should always be to check the odds.
Sites offering free bets in the UK are a great opportunity for you to practice reading and understanding odds without risking your own money. In fact, that’s exactly what you should be doing before you place your first real bet.
Reading odds properly will allow bettors to:
- Identify value bets
- Calculate potential returns instantly
- Identify mispriced markets, and
- Gain a huge edge over the majority of other punters
Pretty powerful stuff, right?
Breaking Down The Three Main Odds Formats
There are three formats of sports betting odds.
They are American odds, fractional odds, and decimal odds.
Each is a different way of displaying odds, and you’ll see them used by different bookmakers around the world.
You need to understand all three.
American Odds (Moneyline)
American odds use a baseline of $100 and use either a plus (+) or minus (-) sign.
Negative odds (-150): Shows how much you need to bet to win $100.
So at -150, you’d need to bet $150 to win $100.
Positive odds (+200): Shows how much you’d win if you bet $100. At +200, a $100 bet wins you $200.
American odds are the most common format in the US, where the negative number is the favourite and the positive number is the underdog.
Decimal Odds
Decimal odds are the most popular in Europe, and to be honest, they’re the easiest to understand.
Decimal odds show the total payout including stake.
If odds of 2.50 are seen, that means for every $1 bet, $2.50 will be returned if it wins.
Stake x Decimal Odds = Total Payout
So a $50 bet at 2.50 odds would return a total of $125 ($75 profit plus the original $50 stake back).
Easy, right?
Fractional Odds
Fractional odds are the traditional format in the UK and Ireland. Odds will be shown in the format of 5/2 or 10/1.
The top number is your potential profit, and the bottom number is your stake.
At odds of 5/2, you would win $5 for every $2 bet.
A bet of $20 at odds of 5/2 would return a profit of $50, plus the original $20 stake back, giving a total return of $70.
How To Calculate Your Potential Winnings
Once bettors know how to read odds in any of the three formats above, it becomes second nature to work out what would be won if a bet is successful.
But before that can be done, one more thing needs to be understood…
Implied Probability
Every set of odds has an implied probability.
This is the bookmaker’s calculation of how likely they think an outcome is to happen.
For American odds:
Negative odds: Divide the odds by the odds + 100
At -150, implied probability is 150/(150+100) = 60%
Positive odds: Divide 100 by the odds + 100
At +200, implied probability is 100/(200+100) = 33.3%
This is important because:
If you think a team have a 65% chance of winning, but the bookmaker’s odds only imply a probability of 60%, that is a value bet.
Look for when the bookmaker’s implied probability is lower than your own estimate.
The mistake most beginners make is ignoring implied probability completely. Don’t be one of those people.
The Bookmaker’s Edge
The odds bookmakers offer are not fair odds.
They have added an edge (juice) for themselves.
The juice is the bookmaker’s commission. This is why both sides of a bet are often offered at -110. You need to risk $110 to win $100, even though that should be a 50/50 proposition.
This edge is how bookmakers make a profit no matter what the outcome is.
Reading The Market Like A Pro
One of the first things more experienced bettors learn is that they don’t just look at one bookmaker’s odds.
Sharp bettors compare odds for all of the major bookmakers to find the best value for each bet.
The same approach should be taken.
Look at odds from 3-5 different bookmakers for any given event.
It might not seem like much, but those small differences add up massively over the course of a year.
Maybe one bookmaker offers +150 on an outcome and another offers +165. Always take the +165. That’s money in the pocket if it wins.
Line Movement and What It Tells You
Pay close attention to line movement before an event starts.
If odds move a lot, it usually means sharp bettors are making big bets on one side or that some big news has broken such as an injury.
Line movement can provide an insight into where the smart money is going.
Do not follow line movement blindly, but always take notice of it and conduct independent research.
Understanding Different Bet Types
Keep in mind that different bet types have different odds structures.
Moneyline bets are the most straightforward. You are just picking a winner.
Point spreads level the playing field by giving the underdog a head start.
Over/Under bets are based on the combined total points scored by both teams.
Each type of bet has its own nuances and odds to understand, so master them all and you will have more avenues to find value.
The Bottom Line
Sports betting odds are not complicated, but you do need to take the time to learn.
In particular, you need to understand the three main formats of odds used in betting, know how to calculate implied probability and always recognise where the bookmaker has added their juice (edge).
Once the basics are understood, smart betting decisions can be made instead of just guessing at which way to go.
Start small, practice reading odds before betting with real money, use odds comparison sites, and take advantage of any free bet offers you come across.
Just remember:
- Learn all three odds formats
- Calculate implied probability
- Shop around and compare odds
- Never bet more than you can afford to lose
- Track your bets and learn from them
The sports betting market is huge, and it continues to grow each year. As long as there is a solid understanding of how sports betting odds work, bettors will be well placed to have a good experience and perhaps even come away with some winnings.
But do not forget that bookmakers always have an edge built in.
The job is to find situations where they are wrong. That will only happen when there is a real understanding of what the odds are saying.
