Guide: How to calculate betting odds and formulas
Betting is a popular activity that can be found in many places around the world. It’s one of the ways to potentially make some money, and it requires a certain amount of skill and knowledge to do it successfully. In order to calculate how much you can win, you must first understand how betting odds are calculated and the different types of bets that exist. This guide will provide an introduction to calculating betting odds and formulas for both beginners and amateurs.
It is no secret that sports betting has become increasingly popular all around the world. In the US alone, betting has grown exponentially in the past four years since the sports betting ban was overturned, which resulted in close to 35 states beginning the process of legalizing betting. But it’s not just for legal reasons that betting is becoming more common – it is also due to the fact that sportsbooks are growing more accessible, innovative, and safe. Some sportsbooks, such as betJACK, become particularly popular because they offer special functions such as betting guides, news articles and blogs, and betting training camps.
Types of Odds
When it comes to odds, the very basics boil down to this: the more likely the turnout, the lower the odds; the more unlikely the turnout, the higher the odds. However, these odds can be presented in a few different ways. The most common ways that betting odds are presented are as fractions or decimals. This can vary depending on where you are in the world, with some countries favoring one format over the other.
Fractions, or British Odds
British odds are expressed as fractions with a decimal point added to the end, e.g., 10/1 or 8/5. A bet of 10/1 would mean that you stand to win 10 times your stake if the event happens, while a bet of 8/5 would mean that you will win 8 times your stake for every 5 units staked.
American Odds
In American odds, the betting odds are expressed as a (+) or (-). A plus sign means that the bettor stands to make more money than they bet, and a minus sign means that the bettor stands to make less. For example, if you were betting on a baseball game where Team A was at +150 and Team B was at -150, this would mean that if you wagered $100 on Team A, you would win an extra $150 (so $250 in total) if they won. If you wagered $100 on Team B, you would only win an extra $50 (so $150 in total) if they won.
Decimals, or European Odds
In European odds, or decimal odds, the betting odds are expressed as decimals. For example, if you were betting on a game of tennis where one player had 1.80 odds and the other had 2.50 odds, this would mean that if you wagered $100 on the first player, you would win an extra $80 (so $180 in total) if they won. Alternatively, if you bet on the second player, you would win an extra $150 (so $250 in total).
Calculating Betting Formulas
For those who like to crunch the numbers, there are several ways to calculate betting odds, formulas, and probability numbers. These calculations are not necessary in order to place a bet, but are interesting numbers to keep in mind, specifically for more experienced and expert bettors.
Implied Probability
Implied probability is a way of converting odds into a percentage chance of an outcome happening. Bookmakers set odds for events based on their assessment of the likelihood of the event happening, and the odds offered reflect the probability of that outcome happening. For example, if Team A has 2/1 (2.00) odds of winning, this means that they have a 33.3% chance of winning the match (100/2 = 50 / 1.5 = 33.3).
Odds Overround
The odds overround is a measure of how much extra ‘juice’ is built into the bookmaker’s odds, which allows them to earn a profit regardless of who wins or loses. The odds overround is the sum of the probabilities of all possible outcomes, expressed as a percentage. It is calculated by taking the sum of all odds (including the draw) and dividing it by 100. For example, the bookmaker sets the odds of Team A to win at 1.75, and Team B to win at 2.10. The total odds overround can be calculated as (1/1.75 + 1/2.10) x 100 = 105.7%. This means that the bookmaker has built in a profit margin of 5.7%, which ensures that they will make a profit regardless of which player wins.
Expected Value
Expected value is a way of assessing the potential profitability of a bet based on the probability of the outcome occurring. It is calculated by multiplying the probability of an outcome by the amount that will be won or lost if that outcome occurs, and subtracting the amount that was staked on the bet. For example, if you are betting on a horse race where Horse A has 1/2 (1.5) odds and Horse B has 4/1 (5.00) odds, the expected value of betting on Horse A would be 67% (50/75 = 0.67), while the expected value of betting on Horse B would be 20% (25/125 = 0.20).
Conclusion
There are many ways to go about analyzing odds. For experienced bettors, analyzing and calculating factors such as implied probability may be a deciding factor in placing the bet or not. Regardless of whether you want to calculate your odds or not, it is essential to understand how bets work, do your homework on the teams you are betting on, and make sure to gamble responsibly. Never gamble for more than you can afford, no matter how good the expected value or probability seems to be.
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