What Does ‘Handicap’ Mean in Betting?
Handicap or spread betting is highly popular all over the world. It’s the type of wagering where sportsbooks try to even the betting field playfed, but add or deduct points to one side.
It might sound complex right now, but do know that it’s not like that at all. We’ll explain how everything works here in about 5 minutes, because it’s really straightforward, but it can be very useful.
What’s a Handicap
When a difference in quality between two rivals is too big, and let’s say the favorite’s moneyline is -900, and the underdog’s +750, betting on the better side to triumph isn’t worth it.
That’s when the sportsbooks use handicaps to turn one-sided games into competitive betting markets. If you can’t find value in a winner, you find value in the margin.
How the Handicap Works
The sportsbook assigns a numerical value to both teams. You will see this represented by a plus (+) or minus (-) sign:
- The Favorite (-): They start with a “deficit”. To win the bet, they must triumph by a higher margin than the set handicap. The Rams -6.5 means they have to win by 7 or more points.
- The Underdog (+): They start with “lead”. To win the bet, they must either win the game outright, draw, or lose by less than the handicap amount. In this case, if the Jags are +3.5, they have a luxury of losing up to 3 points, getting a tie, or winning outright.
European Handicap vs. Asian Handicap
These two betting categories are not the same. Yes, they include the word “handicap” in their names and share many similarities, but overall, there are many differences between them as well.
European Handicap (3-Way Handicap)
This version uses only whole numbers, such as -1, +2, or -5. The main characteristic of the European handicap is that it includes a TIE as one of its possible outcomes.
- Example: The bet was on Manchester United -1. The Red Devils triumphed 2-1, making the bet a losing one, because the HANDICAP DRAW occurred. Remember, one goal has to be deducted from United, so basically the final result was 1-1.
- Best For: All those looking for higher odds use this handicap, because the moneylines are increased due to a three-way outcome.
Asian Handicap (2-Way Handicap)
In a vast majority of cases, this handicap uses half-numbers like -1.5, +0.5 to eliminate the possibility of a draw. The .5 at the end of the handicap or a spread is called a HOOK. It excludes ties from the possible outcomes, since neither sport uses decimal scoring.
- Example: If anyone bets PSG at -1.5, the Saints can either win by a 2-goal margin, or they don’t. There’s no half a goal in soccer. The same applies to other sports.
- Best For: Professional bettors who want to reduce risk and “remove the tie” from the equation.
The Push
Asian handicap can include round numbers as well, like -1 or +2, without a HOOK.
In this case, when a bettor takes a bet like Bayern Munich -3, and the German powerhouse beats its rival 4-1, it is not a “handicap draw” but a PUSH.
It means the stakes are returned to the bettor because a tie isn’t possible here.
Strategic Advantages
- Finding Value in Favorites: Instead of betting a favorite at -400 to win, you can bet them at -1.5 goals for closer to +100. You are essentially betting on a “convincing win” rather than just a win.
- The “Double Chance” Alternative: Betting an underdog at +0.5 is functionally the same as a “Double Chance” bet (Win or Draw), but often carries slightly different odds depending on the book.
- Predicting Game Flow: Handicap betting allows you to profit from a team that plays great defense. If a team rarely loses by more than one goal, the +1.5 handicap is a powerful tool, even if they aren’t winning games.
Summary
Handicap betting is about efficiency.
The question in this case isn’t who will win because that’s pretty much obvious, but what the final result will be. And that’s where the value and the profits are.
Bettors can use either the European or the Asian Handicap, with the note that Asian might be better because they eliminate “pushes” because they have a hook, or the .5 value.