Friday, May 5, 2017

Betting Odds, How Do They Work?



For you to succeed as a punter, you must first clearly know what betting odds are and how they can influence your returns. Without a solid mastery of betting odds, it is hard to place bets correctly as you will be simply acting as a blind and idle punter dishing away money as a pastime. Luckily, betting odds are not that complex and anyone can understand what they represent by just spending a little time on them.


Types of betting odds

There are basically 3 types of betting odds, namely, fractional odds, decimal odds and American odds. The names simply describe the way these odds are written. Depending on the bookmaker you are using and the sports you bet on regularly, you are likely to encounter any of these types of odds and it is important to know how to switch from one type to another. Knowing how to convert or switch one type of odds to another will help you to comfortably compare odds, bet properly and get your desired returns.


(a)             Decimal Odds

These are the most popular odds format currently and the most common among Kenyan bookmakers. They are simple to understand and use as they state clearly how much money a punter will make from a stake of 1 unit, whether that unit is Ksh 1, 10 or 100. Most decimal odds are provided with 2 decimal places to ensure greater accuracy. For example, you will encounter odds stated as 1.09, 1.25, 1.50, 1.80, 2.00, 2.50, 3.60 etc. To calculate the amount you will make with any decimal odds, just multiply your stake with the odds. For instance, odds of 1.50 will give you Ksh 150 with a stake of 100.


(b)            Fractional Odds

These types of odds are offered as fractions. They are commonly used by European bookmakers, particularly those in the UK. The odds are based on the same principle as decimal odds since they are figured out from a 1 unit stake. However, as opposed to decimal odds, fractional odds express a different meaning. Fractional odds tell the punter how much profit will be made on a 1 unit stake and not how much total return (as seen with decimal odds). So an offer of 5/1 fractional odd will pay 5 times per unit stake, an offer of 2/1 will pay two times per unit stake, while ½ will pay half of the unit stake. For example, with odds of 5/1, a punter will make Ksh 500 on a unit stake of Ksh 100.


(c)             American Odds

American odds are quite unique and are very different from the other types of odds. Also called money lines, American odds are typically based on a stake of 100 and hence show a positive or negative outcome from the base of 100. When written positively, the American odds highlight how much profit can be made on a stake of 100. When written negatively, American odds indicate how much of a stake must be used to make a 100 on the bet.


Of the three types of odds, decimal odds are the most popular because they are easiest to use. So while understanding all the other types of odds is a good step for every punter, adopting decimal odds as the baseline for your bets will enable you to make good comparisons quickly and to easily emerge winner.



Converting Decimal Odds into Other Types of Odds
Decimal Odds
Fractional Odds
American Odds
1.01
1/100
-10000
1.10
1/10
-1000
1.40
2/5
-250
1.50
1/2
-200
2.00
1/1 (Evens)
(-)100
3.00
2/1
200
5.00
4/1
400
10.00
9/1
900

Terminologies associated with betting odds


If you are a punter, you ought to know how odds work and the terminology associated with them. Being aware of the terms used when comparing odds will enable you to make wise decisions. The terms include:


(a)             Odds: the probability that an event will occur. The probability is usually calculated by bookmakers who then accept bets against the calculated chance of the event. Odds are a dynamic entity in the betting world and often change as bets on the event come in. If the bookmaker realizes that many people are betting for a particular team, he may try to improve the odds for the team people are ignoring in order to draw more people.

(b)            Stake: This is the amount you are wagering. For example, if you want to place a bet with Ksh 100, that is your stake.


(c)             Evens: Simply means that if you bet using Ksh 100, then a win on the bet adds you another Ksh 100, so you take home Ksh 200.

(d)            Odds against: Describes a situation where potential returns are more than twice the amount of money wagered. For example, odds of 3.00 means you take home Ksh 300 for a stake of Ksh 100, that is, you get two for every one wagered. Odds against bets are often placed for weaker teams which have odds stacked against them.


(e)             Odds on: In this case, possible winnings are less than double the amount wagered. For example, a decimal odd of 1.50 means you will get Ksh 150 after betting with Ksh 100, with your winnings being only Ksh 50.

(f)              Long odds: Are offered for events whose likelihood of occurrence is very low. For example, the likelihood of Brighton Albion beating Manchester United is very low, so it can be represented by odds of 15 which are quite long.


(g)            Short odds: Are offered when the likelihood of an event occurring is very high. For example, Chelsea beating Hull City at Stamford Bridge is a highly likely event, so the odds may be as short as 1.15.

Applying the odds


For those looking to make quick cash, it is advisable to pick teams with short odds and bet on them. You can also combine a number of short odd events into a multiple bet in order to increase your earnings. For risk takers, mixing some long odds with short odds can be a good way of making huge cash. 


At Sprtszu, we wish you the best of luck.


Bet responsibly.