A Simplified Guide to Understanding How Odds Work

If you just entered the world of gambling, you’ll most likely find everything pretty straightforward - that is, until you run into the word 'odds'. However, understanding everything that odds entails is crucial when it comes to betting, as it shapes the probabilities of your win. So, make sure to keep reading to ensure you don’t go in blind the next time you place a wager.

Source: Unsplash

Types of Odds: American, Decimal, and Fractional

Let’s imagine you decided to a play spin till you win roulette table game. Which, if you haven’t played before, is a spin on the classic table game of roulette, with the addition of the chance to get a 500x multiplier. When you go to play the game, one of the first things you’ll notice is the roulette odds it has, such as column being set as 2/1.

This is a fractional odd, and it is exactly what it sounds like. Odds that are displayed as fractions indicate the potential profit of your bet. Typically, these are used by British and Irish bookies. This is just one of three main types of odds, the other two being American and Decimal.

When it comes to American odds, a.k.a. money line odds, you will find them accompanied by a minus or plus sign. When it has the minus sign, it shows you how much you need to bet to win £100, and when it is a plus sign, it showcases how much you might win for every £100 you stake.

Finally, we have the decimal odds, which are popular in Canada, Europe, and Oceania. These are much simpler to understand and represent how much you can get for every dollar you bet. This will look something like: Item 1: 2.00, Item 2: 1.50.

Explaining the Odds with Examples

Now, even after reading all of the above, you most likely are still a bit confused, so let’s clear it all up with some examples, starting with fractional odds. So, if your odd is showing as 2/1, it means that for every £1 you wager, you get £2 back, plus your initial wager should you win. So, by placing £100 on such an odd and winning, you will get £200 and the initial wager.

When it comes to the American odds, let’s say Team 1 is set at +200, and Team 2 is set at -300. This means if you bet $100 on Team 1, you will get £200 plus the initial wager should they win. While if you bet on Team 2, you would need to bet £300 to win £100, and if they win, you get both the initial stake and the £100 profit.

Lastly, decimal odds. If you place a wager on the hypothetical Item 1 above, you’ll get whatever you wagered multiplied by 2. If you bet on Item 2, it will be your initial stake times 1.5. Both results include the initial stake, unlike the aforementioned ones where the profit and initial wager are separated.

Source: Unsplash

By the end of this, you should have all the knowledge you need to step into the world of gambling with more confidence. Thus, you should easily understand the main types of odds and what you will get in return accordingly regardless of what you wager on, be it a sporting event, a musical contest, or even the presidential election of a country.