How Do Sports Betting Odds Work? Understanding Moneyline, Decimal & Fractional

All tips, promotions, bonuses, and other betting features related to the betting industry have one thing in common—odds.

Depending on the part of the world, there are several different sports betting odds, and in this text, we will look at the three most popular types of odds, how sports odds work, and what they mean for bettors.

Also, we will explain the differences in a specific example so that you can understand the betting odds as easy as possible.

Make sure to check out our Beginners Guide to Sports Betting Basics.

What are Sports Betting Odds?

The sports betting odds are a central part of sports betting and sportsbook. They show the probability of a specific selection and the potential payout for a winning bet.

Bookmakers use odds to emphasize the potential outcome of a sports duel. Betting odds can be displayed in various ways, and the most popular are fractional, decimal, and American style.

They are valid for football games, basketball matchups, NFL, MLB, NHL, tennis, horse racing and other.

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How do bookmakers set odds?

Whatever odds type is used (and we will talk about odds type soon), odds are basically a chance for a certain outcome of the match.

A higher probability of an outcome means lower odds. The opposite is clearly the case with lower probability - the odds and the possibility of winning are higher.

For example, let's say you are planning to stake your bets on Bournemouth v Manchester City in the Premier League on a tether.bet

City will be the favorite with odds of 1.56. A draw is worth 4.30, and a home win is worth 5.90.

So, it is clear that odds also tell us the chance for the outcome of a match is in favour on Manchester City winning.

Fractional odds - British or UK odds

Fractional odds are also known as British odds or UK odds for the simple reason - they are primarily used in Great Britain or Ireland.

Although it may seem complicated, fractional odds are pretty simple.

They are represented as fractions, for example, 6/1, 4/3 or similar.

How do fractional odds work?

Fractional odds are simple as mentioned above.

The first number in the odds is the potential profit, and the second is your stake.

So, for example, if you have the 6/1 ratio mentioned above, it means that for every 1 USDT or any other currency invested (we will use USDT for this article), you get 6 USDT.

For example, Manchester City is playing Aston Villa, and the odds are 2/5 for them to win.

This means that for every 5 USDT invested, you get 2 USDT. So if you invest 10 USDT, you will have 4 USDT profit.

There are also situations when the number in the right column is greater than the one in the left. It's called odds-on, which is a signal for huge favorite.

For example, 9/14. In this situation, you need to invest 14 USDT to get 9 USDT.

An essential catch with Fractional odds is that it does not include your stake back.

So, 6/1 odds mean that for every 1 USDT invested, you will get 6 USDT in profit.

If you bet 10 USDT at odds of 6/1:

• Profit will be 6 x 10 = 60 USDT.

• The total profit will be 60 USDT (profit) + 10 USDT (stake) = 70 USDT.

• So the total amount you get back is 70 USDT, not just 60 USDT, as it includes your initial deposit.

Moneyline odds - American odds

Moneyline odds are known as American odds because, like fractionals used in the UK and Ireland, they are used in the United States of America.

They rely on a base of $100. They have positive and negative values. A positive value at American odds highlights the outsider, while a negative value highlights the favourite.

How do Moneyline - American odds work?

Like Fractional, Moneyline is simple. As we mentioned, everything revolves around $100 as the basis of this quota.

A positive number of +200 means a potential profit on 100 USDT bets. The negative number -200 means the amount you must invest to get 100 USDT.

For example, Manchester City are favorites against Aston Villa, and the odds are -200 for Manchester City to win, while the odds are +400 for Aston Villa to win.

This means that you will earn 100 USDT on a 200 USDT bet on City's victory and 400 USDT on a 100 USDT bet on Aston Villa's triumph.

Of course, you are not required to invest 100 USDT, but it is the easiest way to understand Moneyline or American odds.

For example, if you bet 10 USDT on +370, you will get 37.50 USDT.

Decimal odds

Decimal odds are most popular in Europe and Asia, but they are also used in Canada, New Zealand, Australia, and elsewhere.

The odds are shown in decimals, and your stake is multiplied by them.

They come in the form of 1.75, 3.00 and similar.

How does Decimal odds work?

Decimal odds are more convenient for beginners because they show the total payout instead of the just profit.

For example. Manchester City are favourites against Aston Villa (again). The odds are 1.50. This means that for 100 USDT invested, you will have 150 USDT. It counts your stake and winnings, which is 50 USDT.

If the odds on Aston Villa are 5.35, then you will have a total of 535 USDT for 100 USDT invested, so a profit of +435 and 100 USDT invested.

What is the best betting odds format for me?

Decimal odds are the best for beginners in the sportsbook world, as they are the most straightforward. Multiply the odds by the stake, and you get the total, including the amount you have wagered.

Fractional odds are absolutely the focus of all bookies in the UK, but they can be a bit more difficult for beginners or those used to decimals to understand.

Moneylines are very popular in the USA, but there has also been an increase in the use of decimal odds in the USA.

Understanding all systems is essential for long-term betting, and we believe this blog post will help you know the three main types of betting odds.

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Frequently Asked Questions (FAQ)

What types of sports betting odds formats are there?

There are three types of betting odds formats: moneyline or American, Fractional or UK format, and Decimal or Europe & Asia format.

Which type of sports betting odds format is best for beginners?

The Decimal odds format is the best for beginners at the sportsbook because it simply multiplies the bet with the odds and gives the total winnings.

What do sports betting odds mean?

Sports betting odds mean bookmakers' prediction of the outcome of a sporting event and are based on probability.

Do sports betting odds show favourites?

Not necessarily. Sports betting odds show bookmakers' assessment, but not necessarily the favourites, because in that case, we have to include numerous factors other than the odds themselves.

How do bookmakers set odds?

Bookmakers set odds based on analytics and statistics. Form, injuries, historic duels, and betting volume are some of the basic parameters for setting odds.