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What Does ‘Odds’ Mean in Betting?

what-does-odds-mean

In betting, ‘odds’ are the most important numbers you will see. They serve two primary functions:

  1. They show how much money you can win (your potential payout).
  2. They represent the implied probability of an event happening (e.g., a team winning).

In short, odds are a numerical expression of the relationship between the stake (the amount you bet) and the potential winnings.

Bookmakers (or “sportsbooks”) set the odds, and they can be displayed in three main formats:

1. Moneyline Odds (American Format)

This format is standard in the United States and revolves around the number 100. It uses a plus sign ($+$) for underdogs and a minus sign ($-$) for favorites.

  • Positive Odds ($+$) for the Underdog:
    • The number shows how much profit you will win on a $100 bet.
    • Example: +500
    • How to read it: A $100 bet will win $500 in profit.
  • Negative Odds ($-$) for the Favorite:
    • The number shows how much you must bet to win $100 in profit.
    • Example: -400
    • How to read it: You must bet $400 to win $100 in profit.

2. Fractional Odds (UK Format)

This format is most common in the UK and Ireland. Odds are written with a slash (/) or a hyphen (-).

  • Example: 5/1 (read as “five-to-one”)
  • How to read it: You will win $5 for every $1 you bet, plus you get your original $1 stake back.
  • Payout: A $1 bet at 5/1 returns $6 in total ($5 profit + $1 stake).

When the first number is smaller than the second, it’s called “odds-on,” meaning the outcome is a favorite and considered more likely to happen.

  • Example: 1/4 (read as “one-to-four” or “four-to-one on”)
  • How to read it: You must bet $4 to win $1 in profit.
  • Payout: A $4 bet at 1/4 returns $5 in total ($1 profit + $4 stake).

3. Decimal Odds (European Format)

This format is common in mainland Europe, Australia, and Canada. It is often seen as the simplest format to understand.

  • How to read it: The decimal number represents the total payout (your profit plus your original stake) for every $1 you bet.
  • Example: 6.00
  • Payout: A $1 bet at 6.00 returns $6 in total ($5 profit + $1 stake).
  • Example (the favorite): 1.25
  • Payout: A $1 bet at 1.25 returns $1.25 in total ($0.25 profit + $1 stake). A $4 bet would return $5 ($1 profit + $4 stake).

A 2.00 decimal odd is an “even money” bet, meaning you double your money (e.g., a $10 bet wins $10 profit, returning $20 total).