How do Betting Odds Work?

If you are interested in joining an online sports betting site, you need to understand how betting odds work. We have a complete guide explaining everything you should know about betting odds. That includes the various configurations available online, how to convert between the different formats, and how a betting platform calculates the odds in the first place.

Placing successful wagers at a sporting event is no mean feat. It takes practice, research, and a bit of luck to land a winning wager but, the first step on any bettor’s journey is to understand betting odds. Experienced punters will know just by looking at the odds how likely an event is to happen. These players can use this knowledge to spot a good deal, meaning a wager that will be worth the risk if it comes true.

We have created a betting odds guide to help new players get up to speed quickly. Sports betting in general has a steep learning curve, but understanding the odds is the first step to becoming an expert.

What are Sports Betting Odds?

Sports betting odds are determined by bookies when estimating how likely an event is to take place. Say you wanted to bet on the Six Nations, Ireland enters the competitions as the favourites, which is why they have odds worth 1/1. In the fractional format, 1/1 simply means that you will receive as much money in profit as you are willing to stake.

For fractional odds specifically, they are a fan favourite in Ireland as they represent the ratio players can expect to win. Say you wanted to bet on England to win the Six Nations at 8/1, this format means for every €1 you bet, you will receive €8 in return, plus your initial stake. This relationship stays the same no matter which format you choose.

To put it in its simplest terms, betting odds represent the likelihood of an event coming true. A lot goes into these calculations behind the scenes, but all you need to worry about is how an online bookmaker values an event. Each platform will offer odds of different sizes for the same events, so it pays to shop around. However, if you do not want the hassle of managing multiple sportsbooks, look for one with consistently good prices across all the sports you want to bet on.

How are Betting Odds Calculated Online?

They calculate the odds of an event based on a variety of factors. This includes who is playing at home, which star player could feature, and which team has the better form. All these aspects and more go into a wager, which makes the odds a useful thing to consider when betting. However, that does not mean you can skip researching for yourself.

A real-world example of how betting odds are calculated is available at Novibet. Say you wanted to bet on the winner of the Premier League. Liverpool is amongst the favourites with odds worth 5/1, which means they are likely to do it. A team like Fulham has no real chance of mounting a charge for the title, as reflected by their 250/1 chances.

A screenshot showing the soccer betting odds at Novibet

Exactly how betting platforms calculate their odds is far too complex for an article of this length. However, there is a lot you can take from just a couple of numbers. Looking at the big picture, markets with odds worth 10/1 are usually unlikely, but that does not mean you should always avoid them. Take betting on horse races as an example. Outsiders win every day with odds even higher than 10/1, which means you need to find something beyond the numbers.

In sporting events like soccer, it’s difficult to find markets worth as much as 5/1 worth taking. That is because likely events take place all the time. Players like Haaland score almost weekly, which means they will have low odds for anyone looking to bet on their success. Instead, value can be found by looking at other options, besides the most obvious.

How do you Read Betting Odds Online?

Whether you place your sports bet at Novibet or any online platform, reading the betting odds is straightforward. Most platforms even allow players to change the format of the odds displayed on the website. That means you can swap between fractional, decimal, and the American odds system.

Each system offers players a different way of understanding essentially the same thing. Every bookie will have a range of sports for players to bet on, and each sport will feature a variety of markets. For soccer, you can bet on the match winner, the number of corners, the total goals scored, and much more. The same applies to anyone betting on Gaelic football, as you can bet on the points, goals, or even whether a player picks up a black card.

The difference between the odd systems is just down to preference. The most popular format in Ireland is the fractional system, as it represents a straightforward calculation. This format includes two numbers separated by a slash. The digit on the left is your winnings and the right side is the size of your stake. If you see odds worth 20/1, betting €1 will give you €20 in profit, plus your one euro back.

This format is a fan favourite as it becomes nontrivial spotting high-value wagers. This can help players avoid bets with no chance and spot wagers with worthwhile returns. Below, we explain how to read each type of betting odds, whether you want to master fractional, decimal, or the American system.

Fractional Odds

While most of us did not enjoy fractions when learning math at school, there is nothing to dread when looking at this type of odds. In fact, the fractional system remains one of the most straightforward to master.

This odds system is easy for players to look at and figure out how likely an event is to happen and how much you stand to make. Below are a couple of examples of popular fractional bets.

  • 1/1 pays €1 for every €1 staked
  • 5/1 pays €5 for every €1 staked
  • 15/2 pays €15 for every €2 staked
  • 11/5 pays €11 for every €5 staked
  • 20/22 pays €20 for every €22 staked

The first example is what many call an “evens” bet. This is where the amount you win is the same as the amount you stake. This is your best chance at a 50-50 as you have a chance of doubling your money.

The next two wagers are odds-against because the bookmaker thinks this outcome is unlikely. That means players who take these bets will win significantly more than they stake because the outcome goes against expectations.

The final two wagers are examples of odds-on bets. This is where an online bookmaker believes an outcome is likely to happen, meaning you will often have to bet more to win less. Betting €5 at 5/1 will give you €30 in total. Whereas, the same stake on odds worth 20/22 will return less than €5 in profit.

An example of NFL betting odds with the fractional system

Decimal Odds

The decimal odds system is a popular choice in South America and Europe. That is because the decimal odds directly represent how much you can win per €1 staked. While this may sound confusing, it is straightforward once you understand a few rules.

Decimal odds can not appear lower than 1. Instead, 2 is used to represent even odds, this is displayed as 1/1 when using fractions. A flat 2 on a rugby betting market means you will make the exact amount you are willing to wager. That means any market with a decimal odd worth less than 2 results in less profit than the size of your stake.

The best way to understand the decimal odds system is with examples. Say you wanted to bet on the Oleksandr Usyk vs Tyson Fury fight. The odds are as follows:

  • Oleksandr Usyk to win 1.62
  • Tyson Fury to win 2.20
  • Draw 16.00

As Usyk is listed at less than 2, you know immediately he is the favourite and will return less than the value of your stake. If you bet €1 on the favourite, you will receive €1.62 in total, which is 62 cents in profit. This ratio is proportional. Meaning if you upped your wager to €10, your returns become €16.20.

A bet on Fury follows the same format. Since he is worth over 2, you know this market returns more in profit than the value of your stake. A €1 bet returns €2.20, which becomes €22 if you up your stake to ten euros.

A draw between these fighters seems unlikely, which is why it is priced at 16.00 at Novibet. A €1 bet would give you €16 if the bout ended as a draw. If you increase your wager to €10, this market turns into €160, proving just how unlikely this outcome is.

Soccer betting odds in the decimal format

American Moneyline Odds

The American odds system is popular in North America. That is because they use a plus and minus symbol to allow players to identify favourites and whether a wager returns more than your bet. Any market with a + in front of the number means your returns will be larger than your stake. Any wager with a – means the opposite.

While this system is perfect for spotting underdogs, it’s difficult to work out the precise returns without using the bet slip. The other odd systems mentioned allow players to guestimate how much each market would return without the need to add wagers to bet slip and adjust the size of your bet. The American odds system is the hardest to master in that regard, as the odds available can stretch into the thousands.

Below, we have some NFL markets to help illustrate the point with some examples.

  • Philadelphia Eagles -238
  • Pittsburgh Steelers +180
  • No Overtime -2500
  • Pittsburgh Steelers to win the Super Bowl +2300

As the Eagles have a minus symbol, they enter as the favourite. However, knowing what -238 means in terms of real money is difficult to work out without lots of experience. A €10 bet on the Eagles would yield €14.20 if they were successful.

That means the Steelers enter this fixture as the underdog at +180. A €10 bet on Pittsburgh to win the match, including overtime, would give you €28. Although you can easily tell this wager would result in plus money, it is challenging for new players to know exactly how much without adding the market to the bet slip.

In most NFL fixtures, you can bet on the possibility of there being overtime to settle the game. In this fixture, no overtime seems the most likely option thanks to the minus symbol. The odds of -2500 tell players they stand to make incredibly little if they were to bet on this market. A ten-euro stake returns 40 cents in profit.

The last market is a future bet, one that won’t be settled until the very end of the season. Pittsburgh to win Super Bowl LIX is worth +2300. The plus symbol means you will receive more than your stake in profit, but how much? When the number gets this large, it is easy to work out the exact returns. Betting €10 will give you €230 in profit, plus your ten euros back, equalling €240 in total.

The American odds system is popular for players who create parlays. In Ireland and the United Kingdom, a parlay is another word for an accumulator. When you combine multiple markets across different events, your odds can stretch into the hundreds and even thousands. With this odd system, it is incredibly easy to work out your returns even when you have wagers with +10,000 in your bet slip.

An example of American betting odds at Novibet

Converting Betting Odds

If you are looking to convert between different betting odds systems, the best place to start is with an online calculator. You can enter the odds for one format and see how they are represented across all three formats. You can then easily adjust the size of your stake to see the returns.

If you want to avoid a calculator, the online sportsbook at Novibet also has what you need. Our platform allows you to change between all three systems at the click of a button. You can do so by locating the gear icon in the top right corner of the betting page. Here you can easily flick between fractions, decimals, and the American format to see how each system compares.

How do Odds Affect Payouts?

The odds directly affect the size of your payout. For most sporting events, the odds change on the fly. That means you will see different betting odds the day before the event, five minutes before the start, and throughout the fixture.

Live betting is where the odds can change the most. If you are looking to bet on a horse race or rugby game while it is taking place, the odds can shift dramatically based on the event. Individual players can see their odds slashed if they get close to scoring points or if they are treading the line in terms of discipline.

No matter how the odds are affected, one aspect remains the same. The higher the odds, the larger your payout. This applies to all three betting odds formats and is true no matter when you bet on an event.

What Does – and + Mean in Sports Betting?

If you use the American odds format, you will see a plus or minus symbol next to every market. While the minus symbol typically represents an underdog, this is not always true. In many NFL or soccer games, you can see both teams with a minus symbol in front of their odds. So, what does it mean exactly?

A plus symbol represents when a market will return more in profit than your stake. A wager with +200 will result in you receiving double the amount you have wagered as profit. If you bet €10, you will get €30 back in total.

The minus symbol works in the same way but for markets that will return less than the value of your stake. If you saw a wager with -200 attached, it would give you half the value of your bet in profit. So, if you made another ten euro bet, you would receive €15 in total. Five would be pure profit, and the other ten is the original value of your stake.

Types of Sports Bets

When you visit a bookmaker, you will have instant access to hundreds of wagers across dozens of markets. Some sports share the same types of wagers, while others have a much smaller selection for punters to bet on. Below are some examples of the wagers you can find at Novibet.

  • Match Result: This is the most straightforward wager available, as you are guessing which team or individual will win an event. This market applies across every sport and is not dependent on the exact scoreline. This means that if the team you bet on wins by one point or 60, your bet is a winner.
  • Over/Under Bets: For this wager to come true, you need the points scored in a game to be over or under a specified target. For sports like rugby, over/under-betting can apply to both teams and just one. You can wager on the combined total of points scored in the game to be higher or lower than 50, as an example.
  • Handicap Bets: Most fixtures at Novibet have a handicap option. This is where we try to level the playing field between two teams by giving one a handicap to overcome. Say Manchester City played Ipswich Town, you would expect City to win. Betting on the match result for City will give you poor returns, but the handicap won’t. The handicap for this game could be four goals, meaning Man City must win by four or more for your bet to be successful.
  • Trixie Bets: When looking at bets, there are dozens of exclusive-sounding terms. The Trixie bet is one of those wagers which consists of four other bets. To make a Trixie bet, you need to make three outright selections for the winner across three games in the same sport. Next, the bet slip will organise your options into three doubles and one treble. The doubles require at least two teams to win to come true, and the treble needs all three results. This wager offers players cover in case one leg lets you down.
  • Accumulators: While the Trixie provides cover, the accumulator does not. You can add as many wagers as possible across multiple sports in your accumulator. The more legs in your bet, the higher the returns. However, if you get any of your predictions wrong, your bet has failed, and you cannot win any money. This is a risky option, but it comes with fantastic returns.
  • Prop Bets: Making a prop bet means you are betting on an event that does not require an accurate prediction of the outcome. You could bet on a player to score and still have a winning bet even if their team loses. For example, you can bet on Harry Kane to score for England and this bet will pay out no matter the result, as long as Kane scores.
  • Each Way Betting: If you are a fan of horse racing, then betting each way is a fantastic option. When you bet on a horse race, you need the runner you select to come first. However, each way betting allows you to win if your horse finishes in the top five places. The number of places included in this wager varies depending on the race. Some events will only offer three places, whereas the Grand National can offer as many as eight!