Betting odds are a crucial determinant when selecting a bookmaker. But what exactly are these odds, how are they calculated, and why are they set the way they are? In this article, we’ll explore these aspects in detail and delve into the complexities of odds, their computation, and more.
Understanding Betting Odds and How They Are Formed
Betting odds, or coefficients as they’re sometimes called, represent the likelihood of a certain event occurring, factoring in the bookmaker’s margin. For bettors, this figure is a primary indicator of potential profit and payout. Essentially, the odds reflect the probability of winning a bet, aiding players in gauging whether a bet is worth placing.
The process of calculating odds is complex and often involves the use of advanced analytical tools and professional software. Traditionally, large analytical teams would manually calculate odds, but this method is time-consuming and requires considering hundreds of factors. Today, odds calculation is largely automated through specialized software.
Types of Betting Odds
There are numerous types of coefficients in the economy, but in betting, three formats are predominantly used:
- British. While the calculation method remains the same, these formats differ in how the odds are presented. Let’s take a closer look at each type.
European odds, also known as decimal odds, are the most commonly used. They depict the event probability as a decimal number (e.g., 2.25, 1.12). Bettors from the CIS region typically use these odds to determine the likelihood of an outcome. Odds less than 2.00 suggest a high chance of winning, while those greater than 2 indicate diminishing chances.
Calculating winnings using European odds is straightforward:
- The potential payout is found by multiplying the stake by the odds.
- The probability can’t be equal to or less than 1. If the probability is 1, the bet becomes void. For instance, if a bet was placed on over 3 goals and exactly 3 goals are scored, the bet is returned to the account.
- A standard odd of 2.5 implies a 40% chance of success. In this case, the profit is 1.5 times the stake. For a $100 bet, the payout would be $250, $150 of which is pure profit.
European odds also come in variations, such as the Hong Kong coefficient, which is one less than the standard European odds, showing the net profit.
American odds are expressed as whole numbers with a plus or minus sign and are often perplexing to those in the CIS region. Here’s how they work:
- A positive number indicates the potential winnings from a $100 bet.
- A negative number indicates the stake required to make a $100 profit.
For example, suppose Barcelona (+230) is playing against Manchester (-165). The +230 indicates that a $100 bet on Barcelona would yield $230 in winnings (equivalent to a European odd of 2.3). The -165 indicates that a bet of $165 on Manchester is required to make a $100 profit.
Variations of American odds include the Indonesian and Malay formats.
British odds, or fractional odds, are represented as fractions and may seem unusual to many bettors outside of the UK. For example, an odd of 6/2 suggests a winning probability of 6 to 2. In European terms, this would be represented as 3, and in American odds, as +300.
The odds in betting lines signify the probability of events occurring and represent the associated risks. Manual calculations can be cumbersome and prone to errors. Therefore, odds are usually calculated automatically in real-time using specialized software. While there are several formats for presenting odds based on the bookmaker’s target audience, understanding and calculating betting odds is straightforward once you familiarize yourself with the concept.