Betting Odds: Types and Calculation

In the art of betting, there are many nuances, but one of the key concepts is the notion of probability. Understanding probability will help unravel the coefficients used by bookmakers and how they are formed in general. Players must have a clear understanding of what chance entails.

Chance represents the probable percentage possibility of a particular event occurring. Let's consider a simple example using a dice. The probability of any outcome here is 1 in 6, as there are six possible numbers that can be rolled. To calculate the percentage probability of any event, divide 100% by the number of possible outcomes. In the dice example, the percentage probability would be 16.66%.

Studying coefficients in Russian bookmakers' offices
Decimal Odds
It is known that in sports betting, practically all wins and losses are calculated based on odds. These odds can be presented in different formats, starting with decimal odds. This fraction reflects the probability of an outcome not in percentages, as many are accustomed to, but as a decimal number.

For example, if the probability of your bet winning is 80%, then the odds value in a bookmaker's office will likely not exceed 1.25. The calculation is made by dividing 100% by the probability, which is 80%.

100% / 80% = 1.25

Today, many companies use this format. So, if a bettor wins, the winnings are multiplied by this number, and the player receives their payout. The return, in this case, represents the sum of the bet and the winnings.

If we consider this in monetary terms, a bettor who placed a bet of 1,000 rubles at odds of 1.25 would receive 1,250 rubles. This is derived from multiplying the event's odds by the bet amount.

1,000 / 1.25 = 1,250

Fractional Odds
In addition to decimal odds, fractional odds are also popular. If the decimal odds were 1.25 in the previous example, here things will be slightly different. Success will be evaluated as 1/4 and directly reflect a profit of 0.25. The odds of 1/4 are read as "1 to 4," meaning you need to stake 4 units to win 1.

In this case, with a bet of 2,000 rubles, the player would be able to gain 500 rubles in net profit. It's worth noting that fractional odds indicate the size of the net profit, not the return.

To convert this format to decimal, simply divide the fraction and add one to the result. So, dealing with odds of 1/4, dividing one by four and adding one yields the same odds of 1.25.

(1 divided by 4) + 1 = 1.25

American Odds
This is not the most popular format for odds, but it is also frequently used. Many bettors find these odds the most challenging to understand. Such odds are expressed as numbers greater than 100 and have either a "+" or "-" value. In the first case, you can see how much the bettor can win if they stake 100 units. In the second case, it indicates how much the bettor needs to stake to gain a net profit.

The advantage of this format is that it can be easily converted to decimal odds. If the odds are negative, divide 100 by the odds and add one. If the odds are positive, divide the odds by 100 and add one.

For example, if the odds presented are -400, divide 100 by 400, then add one. Thus, the resulting odds would be 1.25.

(100 / 400) + 1 = 1.25

Probability of Outcome
As mentioned above, bookmakers' odds reflect the probable chance of various outcomes in sporting events. Undoubtedly, understanding the value of odds is crucial for successful betting, allowing for informed analysis and determination of betting strategies.

To calculate the probability of an outcome, which the bookmaker has incorporated, simply divide 100% by the decimal odds.

100% / 1.25 = 80%

The Importance of Understanding All Odds Formats
It is not surprising that the key to success in sports betting largely lies in understanding the essence of odds. This involves not only evaluating them but also understanding how they are formed, which is essential in the analysis process. Regarding the actual notation of odds and the available alternatives, each player should choose the format that they find most understandable and convenient. For example, bookmakers in the Asian market often use Hong Kong, Malay, and Indonesian odds.

Undoubtedly, the choice of a reliable bookmaker is also important. We recommend placing bets only with reputable and legal betting companies.

Bets on the outcome of a particular sporting event are perhaps the most common among players due to their utmost clarity and simplicity. It is from bets on the outcome that the activity of bookmakers began, eventually reaching an incredible variety in terms of odds. Depending on the sport, there are bets with a double or triple possible outcome. For example, when predicting the result of a football match, you can bet on the victory of the first team, a draw, or the victory of the second team. In tennis matches, there is no draw, so only two outcomes are possible.

Bets on the Outcome (1-X-2)
Let's provide a specific example of a bet with a triple outcome. Football. UEFA Champions League. Group stage. "Sevilla" - "Spartak." The bookmaker sets odds for the home team's victory (1), the away team's victory (2), as well as for a draw (X). If a player predicts the victory of "Sevilla" and the match ends in favor of the away team, the bet is a winning one. If the match ends in a draw or with the Moscow team's victory, the bet loses. It is easy to understand that in the first case, the player not only gets back the bet amount but also the net profit, while in the second case, they get nothing.

Stories & Inspiration for Aspiring Bettors

The dark side of the sports betting boom

Articles on Sports betting

Sports Betting Articles

First Came the Sports Betting Boom

How to Become A Sharper Sports Bettor
Bets with triple outcomes are most popular in football but can also be found in hockey and basketball. As for tennis matches, as mentioned earlier, there are only two possible outcomes. Let's give an example. Tennis. Tournament. ATP. Beijing. China. Hard court. R. Nadal - A. Zverev. The bookmaker offers to bet on either the victory of the Spaniard (1) or the victory of the German (2). There is no draw in this case. The bettor chooses one of the options, places the bet, and waits for the results. A similar situation can also be observed in volleyball and baseball, where there are also only two possible outcomes.

It is worth noting one important aspect that beginners often forget.

Bets on the outcome consider only the regular playing time. The exception is basketball, where bets are accepted taking into account the possible overtime.

To date, numerous diverse strategies have been developed for bets on the outcome. However, it cannot be claimed that there is a universal strategy that guarantees profit, as otherwise the operation of bookmakers would be questioned.

Thus, it can be said that bets on the outcome are the clearest and most convenient way to place wagers, which is why they enjoy such popularity.

A bookmaker is a company that accepts bets on the outcomes of various events, mostly in sports. The operation of bookmakers is based on calculating the odds of a particular outcome, taking into account not only the real probabilities but also the built-in margin. In other words, the evaluation is done in such a way that the bookmaker has the opportunity to maximize profit regardless of the outcome.

Example with a Coin
For a better understanding, let's use a well-known example with a coin. As we know, when flipping a coin, there are only two possible outcomes: heads or tails. Let's say a bookmaker decides to accept bets on this event.

Considering that the probabilities are equal, the odds for both heads and tails are set at 2.0. Two players, one betting 1000 rubles on heads and the other betting 1000 rubles on tails, are waiting for the result. Let's assume that heads come up. In that case, the bookmaker would have to pay out 2000 rubles to the first player who made the correct prediction. But is that the reality?

Certainly not. If it were, bookmakers would simply cease to exist. In reality, the odds would hardly exceed 1.90, and in most cases, they would be even lower. Therefore, the net profit for the bookmaker would be a minimum of 100 rubles. These are the profits that bookmakers collect. Therefore, when choosing a bookmaker, special attention should be paid to the "margin" criterion because even a difference of 0.1 plays a significant role in the long run.

Every self-respecting player should have accounts with several bookmakers, which allows them to choose favorable odds for their bets. To save time on analyzing and comparing bookmakers, pay attention to our rating of reliable bookmakers—any company on the list is worth your attention.

Battle with the Bookmaker
From the very beginning of acquainting oneself with bookmakers, it is important to understand that searching for an answer to the question "How to beat the bookmaker?" is a futile exercise. This is because the bookmaker remains in a winning position regardless of the outcome.

In essence, it is about the funds that someone else has lost (the second player in the coin example). Therefore, you should simply aim to have more winning predictions than losing ones with an average odds of 2, and that will be enough to come out ahead.

In addition to the right mindset, it is important to choose a game and financial strategy for yourself and follow a number of recommendations:

Continuously improve your knowledge.
Avoid making large all-in bets.
Study predictions from analysts.
Identify inflated odds.
Play only with reliable bookmakers.
Verified and legal bookmakers:
As mentioned earlier, bookmakers' analysts play an active role in forming and adjusting the odds, having a deep understanding of certain nuances of specific sports and knowledge of the basic principles of mathematical modeling.

Accurately set odds are the key to a bookmaker's success. Bookmakers also pay special attention to live odds, which are monitored by live analysts. Interestingly, today, live matches are mostly managed automatically.

Betting Exchanges
It should be noted that professional bettors place their bets not with bookmakers but on betting exchanges. The most popular exchange at the moment is Betfair. The essence of playing on an exchange is that bettors play against each other, independently setting odds that are sometimes much higher than those offered by bookmakers. However, it is important to remember the commission on winning bets, which is usually up to 5%.

Currently, the exchange has over four million users and handles over seven million transactions per day. There is an excellent service available for beginners that provides a detailed description of all the principles of operation. However, it won't be easy for a novice player, as professional bettors will try to outperform the inexperienced ones.