Sports betting is a thrilling way to add excitement to your favorite sports games while potentially earning some extra cash. However, if you’re new to the world of sports betting, understanding how to read sport betting odds accurately can be overwhelming.
Many factors go into creating betting odds, including team performance, injury reports, and historical data. With so much information to consider, it’s essential to know how to read sport betting odds with accuracy to make informed betting decisions. In this blog post, we’ll break down the basics of sports betting odds and provide tips for reading them with accuracy, so you can start making more informed and successful bets.
How Do Sports Betting Odds Work?
Sports betting odds are used to determine the likelihood of a particular outcome occurring in a sporting event, such as a team winning a game or a player scoring a certain number of points. Odds are usually presented in one of three formats: decimal, fractional, or American.
How to Calculate Decimal Odds
To learn how to read sport betting odds with precise accuracy, you must be conversant with decimal odds. Decimal odds are the most common format used in Europe, Australia, and Canada. They are represented as a number with two decimal places, such as 1.75. This number represents the amount of money that a bettor would win for every unit of currency wagered. It is calculated by dividing 1 by the decimal odds. For example, if the decimal odds are 2.00, the implied probability is 1/2.00 = 0.50 or 50%.
To calculate the potential payout of a bet in Naira, you need to multiply the amount of the bet by the decimal odds. For example, if you bet 1,000 Naira on a bet with decimal odds of 2.00, your potential payout would be 1,000 x 2.00 = 2,000 Naira.
Here’s an example:
Let’s say you want to bet on a football match between Manchester United and Chelsea. The decimal odds for Manchester United to win are 2.50.
To calculate the implied probability of Manchester United winning, you divide 1 by 2.50, which gives you 0.40 or 40%.
To calculate the potential payout of a 1,000 Naira bet on Manchester United to win, you multiply the bet amount by the decimal odds, which gives you 1,000 x 2.50 = 2,500 Naira.
So, if Manchester United wins the match, your payout would be 2,500 Naira. If they lose or draw, you would lose your 1,000 Naira bet.
How to Calculate Fractional Odds
Fractional odds are more common in the UK and Ireland. It is important to know if you must learn how to read sport betting odds. Fractional odds are represented as two numbers separated by a slash (e.g. 2/1). This number represents the amount of money that a bettor would win for every unit of currency wagered. The first number represents the potential payout (profit) and the second number represents the stake (amount bet). For example, if the odds are 2/1, a 100 Naira bet would win 200 Naira (potential profit) plus your original stake of 100 Naira, giving a total payout of 300 Naira.
To calculate the decimal odds equivalent of fractional odds, you add the two numbers together and divide by the second number, then round to two decimal places. For example, if the odds are 2/1, you add 2 + 1 = 3, then divide by 1 to get 3.00.
Here’s an example:
Let’s say you want to bet on a horse race, and the fractional odds for your horse are 5/2.
To calculate the decimal odds equivalent, you add 5 + 2 = 7, then divide by 2 to get 3.50.
To calculate the potential payout of a 1,000 Naira bet on the horse, you multiply the stake by the first number in the fractional odds and then add the stake back. So, for a 1,000 Naira bet on a horse with fractional odds of 5/2, the potential payout would be (1,000 x 5/2) + 1,000 = 3,500 Naira.
So, if the horse wins the race, your payout would be 3,500 Naira. If it loses, you would lose your 1,000 Naira bet.
How to Calculate American Odds
American odds are another way of representing the probability of an event occurring, commonly used in the United States. To convert American odds to Naira, you first need to understand how to read them.
American odds are represented as a positive or negative number, with a negative number indicating the favorite and a positive number indicating the underdog. The number represents how much money you would need to bet to win 100 Naira (for negative odds) or how much money you would win on a 100 Naira bet (for positive odds). For example, if the odds are -200, you would need to bet 200 Naira to win 100 Naira, giving a potential payout of 300 Naira (200 Naira bet plus 100 Naira profit).
To calculate the decimal odds equivalent of American odds, you add 1 to the absolute value of the odds divided by 100, then multiply by the odds sign (+1 or -1). For example, if the odds are -200, you add 1 to 2.00 (absolute value of 200 divided by 100) and multiply by -1 to get 1.50.
Here’s an example:
Let’s say you want to bet on a basketball game between the Los Angeles Lakers and the Boston Celtics. The American odds for the Lakers to win are -150.
To calculate the decimal odds equivalent, you add 1 to the absolute value of -150/100, which is 1.5, and multiply by -1 to get 1.67.
To calculate the potential payout of a 1,000 Naira bet on the Lakers, you divide the bet amount by the odds and then multiply by 100. So, for a 1,000 Naira bet on the Lakers with American odds of -150, the potential payout would be (1,000/150) x 100 = 666.67 Naira.
So, if the Lakers win the game, your payout would be 1,666.67 Naira (the potential payout of 666.67 Naira plus your original stake of 1,000 Naira). If they lose, you would lose your 1,000 Naira bet.
How to Know Winning Odds
The winning odds for a sports betting event depend on a number of factors, including the sportsbook offering the odds, the type of odds being used (e.g. decimal, fractional, or American), and the probability of the outcome occurring. Here’s how to read sport betting odds and to calculate the winning odds based on the probability:
Convert the Probability to Odds
The first step is to convert the probability of the outcome occurring into odds. To do this, use the following formula: odds = 1/probability. For example, if the probability of an outcome occurring is 0.5 (50%), the odds would be 1/0.5 = 2.0.
Add the Bookmaker’s Margin
Sportsbooks typically add a margin to the odds to ensure they make a profit. This is known as the bookmaker’s margin or the overround. To calculate the bookmaker’s margin, add the inverse of each outcome’s odds together and then subtract the result from 1. For example, if there are two possible outcomes with odds of 2.0 and 3.0, the bookmaker’s margin would be (1/2.0) + (1/3.0) = 0.833, and the adjusted odds would be 1/0.833 = 1.20 and 1/0.556 = 1.80.
Calculate the Potential Payout
To calculate the potential payout for a given stake, multiply the stake by the adjusted odds. For example, if you bet 10 units on an outcome with adjusted odds of 1.80, the potential payout would be 10 x 1.80 = 18 units.
It’s important to note that winning odds are not a guarantee of a win, as they represent the likelihood of a certain outcome occurring rather than a certainty. However, by calculating the odds and comparing them to the probability of the outcome occurring, you can make more informed betting decisions and potentially increase your chances of winning.
Why Would you Bet on Negative Odds
Betting on negative odds means that the outcome is considered more likely to happen than not, and the sportsbook has given lower odds as a result. While betting on negative odds means that the potential payout is lower than the amount wagered, it can still be a profitable strategy if you believe the outcome is highly likely to occur.
Some reasons why you might bet on negative odds include:
To Increase your Chances of Winning
Betting on negative odds can increase your chances of winning compared to betting on positive odds or long shots. If you believe the outcome is highly likely to occur, betting on negative odds can provide a greater degree of certainty.
To Hedge your Bets
Betting on negative odds can also be used as a form of risk management. For example, if you have already bet on an outcome with positive odds and want to reduce your risk, you can bet on the opposite outcome with negative odds to hedge your bet and potentially offset any potential losses.
To Meet Betting Requirements
Some sportsbooks may require a certain amount of betting activity to qualify for bonuses or promotions. Betting on negative odds can be an easy way to meet these requirements and potentially unlock additional rewards.
Ultimately, whether you choose to bet on negative odds or not depends on your own assessment of the probability of the outcome occurring, your betting strategy, and your risk tolerance. Still on odds, read our article on the best website for sure 2 odds betting.
Best Betting Site for Great Betting Odds
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While personal preferences ultimately determine the best betting site, ZEbet’s focus on competitive odds, a wide range of markets, user-friendly interface, security, and customer support makes it an attractive option for many bettors.