In our “New to Betting” article, we talk about probabilities for the examples of flipping a coin or rolling a dice. Probabilities are considered the best way to think of a desired outcome for individuals to determine what is the best price. Probabilities and Implied Odds are used interchangeably to refer to this style of presenting the price. Below is a list of various ways to look at the price of a sports bet.
Implied Odds (or Probability) - Measures the chance that an outcome would occur. The lower the probability of something occurring means the higher payout that you will see. Inversely, the higher the probability of a desired outcome, the lower the payout that you will see.
As a reminder, a coin flip probability is 50% probability it will land heads. Accordingly, it may be common for one to bet $10 to win $10 in a coin-flip scenario. Additionally, a roll of a die is 16.67% probability it will land on a ‘one.’ Therefore, one may bet $10 to win $60 should the die land on the ‘one.’
American Odds - American Odds are the most common in the US, but get pretty confusing quickly for those new to betting. American Odds show the price in one of two ways plus or minus (+150 or -150). Let’s start by diving into +150 (40% probability). A plus sign means that the probability is under 50%, or the underdog. Accordingly, since you’re taking a lower probability outcome, you can expect a higher return! How high of a return? Well, +150 means you bet $100 to win $150.
On the contrary, when you bet the favorite or a higher probability outcome, American odds show the prices as -150 (or 60% probability). The -150 means a person must bet $150 in order to win $100.
Fractional Odds - Fractional odds, or UK Odds, show the wager as the denominator and the amount the wager will yield as the numerator. If you’re betting a favorite, you may see the odds as 10/15 (or 60% probability). If you’re betting an underdog, you may see fractional odds portrayed as 3/2 (40% probability) where the yield is higher than the amount wagered.
Decimal Odds - Decimal Odds, or European odds, represent the amount one would win for every $1 wagered. If one is betting on an underdog at 40% probability; this would be shown in decimal odds as 2.50 ($1 wagered + 1.50 yield). If betting a favorite at 60% probability, this would be shown in decimal odds as 1.66 ($1 wagered + .66 yield)