NEWSLETTER
If you are new to sports betting, you might not be familiar with the different types of odds across sportsbooks. There are American, decimal, and fractional odds. What do these even mean? Let’s break each down to give you a better understanding before you get started sports betting.
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American Odds
In the United States, American odds are the most popular option at the top sportsbooks like DraftKings, FanDuel, BetMGM, etc. With American odds, you will see them displayed with either a positive or negative number. A minus (-) represents the favorite while a plus (+) represents the underdog.
For example, let’s look at the moneyline and spread for an NBA matchup between the Lakers and Nuggets.
| Matchup | Spread | Moneyline |
|---|---|---|
| Lakers | +7.5 (-108) | +245 |
| Nuggets | -7.5 (-112) | -305 |
For this particular game, the Lakers are the underdog on the spread and moneyline. For the moneyline, they have odds of +245. This means if you bet $100 on the Lakers and they win, you would win $245. A total payout of $345 because you get your stake back.
For the Nuggets, it takes a $305 bet to win $100 because they are the -305 moneyline favorite. You would receive a payout of $405 if the Nuggets win because you get your $305 stake back. For the spread, you can see the odds of -112 and -108 depending on who you bet to cover. In this case, a $112 bet on the Nuggets to cover wins $100 while a $108 bet on the Lakers to cover wins $100.
Fractional Odds
Just like it sounds, fractional odds are displayed in the form of a fraction. This type is usually displayed with a slash (/) or a hyphen (-). Fractional odds are more common in the UK and Ireland. For fractional, the top number (or first) is your winnings. The bottom number (or second) is how much you need to risk to win that amount. Let’s take our same Nuggets-Lakers example from above.
| Matchup | Spread | Moneyline |
|---|---|---|
| Lakers | +7.5 (0.93/1) | 2.45/1 |
| Nuggets | -7.5 (0.89/1) | 0.33/1 |
The Nuggets have moneyline fractional odds of 0.33/1. That means a $1 bet would win $0.33. A $100 bet wins $33. For the Lakers, they have a moneyline of 2.45/1. A $1 bet wins $2.45. That means a $100 bet wins $245.
Decimal Odds
For decimal odds, the number represents the potential profit for every dollar wagered. You will see lower numbers for favorites and higher numbers for underdogs. Also, the number represents the total payout and not just the profit. Let’s take a look at an example.
| Matchup | Spread | Moneyline |
|---|---|---|
| Lakers | +7.5 (1.93) | 3.45 |
| Nuggets | -7.5 (1.89) | 1.33 |
As you can see, the Nuggets have a moneyline of 1.33. This means a $100 bet on Denver receives a payout of $133. You win $33 and get your initial $100 stake back for a $133 total. For the Lakers, a $100 bet on the moneyline receives a payout of $345. You win $245 and get your initial $100 stake back.
Here’s a look at the formulas to calculate your payout and profit.
- Payout = Wager x Decimal Odds
- Profit = (Wager x Decimal Odds) – Wager
Now, using the Los Angeles Lakers 3.45 decimal moneyline, run the calculations.
- Payout = $100 x 3.45 = $345
- Profit = ($100 x 3.45) – $100 = $245
Implied Probability in Sports Betting (American)
What about the probability of the outcome of a sports bet? You can calculate it. Check out the formula below if you are using American. Let’s start with the favorite.
- Negative Odds / (Negative Odds +100) x 100
Let’s use the Lakers vs Nuggets example from above. We will use the -305 moneyline for the Nuggets to calculate their implied probability of winning.
- (305 / (305 +100)) x 100 = 75.3%
Now, on the other side, you would use the positive odds and the following formula.
- (100 / (Positive odds + 100)) x 100
Since the Lakers are +245 underdogs on the moneyline, we plug 245 into our formula.
- (100 / (245 + 100)) x 100 = 28.99%
You will see that 75.3 + 28.99 = 104.29. This is over 100%. This is the expected profit for the sportsbooks for you placing the wager.
What is the Difference Between a Moneyline and Spread?
When wagering on sports, you will come across moneylines and spread bets. What is the difference? A moneyline bet is a wager on a team or individual to win straight up. The favorite has negative while the underdog has positive odds. For the favorite, you have to bet more to receive a decent payout.
A spread is a wager on the margin of victory. This is a way for a sportsbook to kind of even the playing field. For example, an NBA team might have a moneyline of -1450. That means you need to bet $1450 to win just $100 on the moneyline. This is one of the reasons there is a spread, the team might be favored by 15 points with odds of -110 for the spread.
For example, let’s say it’s the Boston Celtics vs the Heat. The Celtics have a spread of -15.5. That means they need to win by 16 or more to cover the spread. The odds on the spread are -110. A $110 bet wins $100.
Why Do Odds or Lines Change at Sportsbooks?
You will notice when you are sports betting how the odds are constantly changing and they aren’t uniform across all sportsbooks. You will see some slight differences on occasion when comparing sportsbooks. Also, they can change for many reasons that have an impact on the game.
One of the reasons is based on how the public is betting. For example, if a ton of bets are flying in on the Nuggets to cover a -7.5 spread, you might see the spread shift to -8.5 for Denver. If Denver’s spread increases, they will also see change on the moneyline too. You will have to bet more money to get a decent payout.
Also, odds can change based on injuries or recent team news. For example, the Vikings might open as a -2.5 favorite but the spread could change if one of their top players gets injured at practice later in the week and won’t play on Sunday.
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