To anyone new to the world of sports betting or online casinos, the term “odds” can seem intimidating. But at its core, understanding odds is fundamental to making informed decisions and grasping the potential outcomes of a wager. Odds are simply a numerical representation of two things: the likelihood of an event occurring and the potential payout if your bet wins.1
While the concept is the same, odds are presented in different ways across ufacash sports betting and casino games.2
Odds in Sports Betting: The Three Main Formats
Sports betting odds are used to forecast the probability of a specific outcome in a game or event.3 They are displayed in three primary formats, which can often be interchanged on most betting platforms.
1. American Odds (Moneyline)4
This format is popular in the United States and is represented by a plus (+) or minus (-) sign.5
Minus (-) Sign: Indicates the favorite.6 The number shows how much you must bet to win $100.7
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- Example: Odds of -150 mean you must bet $150 to win $100 in profit.8 Your total payout would be $250 ($150 original stake + $100 profit).
- Plus (+) Sign: Indicates the underdog.9 The number shows how much you will win if you bet $100.10
- Example: Odds of +200 mean a $100 bet would win you $200 in profit.11 Your total payout would be $300 ($100 original stake + $200 profit)
2. Decimal Odds
Common in Europe, Australia, and Canada, decimal odds are the simplest to understand as they represent the total payout you will receive for every $1 you wager, including your original stake.12
- Example: Odds of 2.50 mean a $10 bet would result in a total payout of $25 ($10 x 2.50).13 Your profit is $15.
- Example: A lower number like 1.50 indicates a higher probability of winning, but a smaller payout.14 A $10 bet would return $15 ($10 x 1.50), with a $5 profit.15
3. Fractional Odds
This traditional format is widely used in the UK and Ireland.16 It shows the potential profit you will win for a specific stake.
- Example: Odds of 5/1 (read as “five-to-one”) mean you will win $5 in profit for every $1 you bet.18 A $10 bet would win you $50 in profit, plus your original $10 stake back, for a total of $60.
- Example: Odds of 1/2 mean you must bet $2 to win $1 in profit. A $10 bet would win you $5 in profit, plus your original $10 stake back, for a total of $15.
Implied Probability
A key concept for serious bettors is implied probability, which is the percentage chance of an outcome reflected by the odds.19 By converting odds into a percentage, you can compare a sportsbook’s assessment of an event to your own.20 If you believe an event is more likely to happen than the implied probability suggests, you’ve found a bet with “value.”
- Formula (Decimal Odds): 21
Odds in Online Casino Games: The House Edge
In online casinos, odds are less about predicting outcomes and more about understanding the house edge. The house edge is the statistical advantage the casino has over the player in any given game.22 This edge is what guarantees a casino’s profitability over the long run.
- Roulette: A European roulette wheel has 37 numbers (1-36 and a single 0).24 The true odds of a single number hitting are 36 to 1, but the casino pays out at 35 to 1. This difference gives the house a statistical advantage, or edge.
- Blackjack: This game has one of the lowest house edges, particularly when a player uses a “basic strategy” chart. The odds are dynamic and change with every card dealt. Using the correct strategy can reduce the house edge to less than 1%.
- Slot Machines: The odds of a jackpot in a slot machine are determined by its Return to Player (RTP) percentage.25 An RTP of 96% means that, on average, the machine will pay back $96 for every $100 wagered over its lifetime. The remaining 4% is the casino’s house edge.
Ultimately, whether you’re analyzing player stats for a sports bet or understanding the RTP of a slot machine, a solid grasp of odds is the first step toward making smarter, more informed decisions.
