Understanding betting odds is the foundation of sports betting literacy. Whether you’re new to wagering or looking to solidify your fundamentals, this guide covers everything you need to know about reading and interpreting odds.
What Are Betting Odds?
Betting odds represent two things simultaneously: the implied probability of an outcome and the potential payout for a winning bet. Learning to quickly translate between these interpretations is an essential skill.
American Odds
American odds are the standard format in the United States. They’re expressed as positive or negative numbers relative to $100.
Negative Odds (Favorites)
When you see odds like -150, this indicates the favorite. The number tells you how much you need to bet to win $100. At -150, you’d need to bet $150 to win $100 in profit.
Positive Odds (Underdogs)
Positive odds like +130 indicate the underdog. The number shows how much you’d win on a $100 bet. At +130, a $100 bet returns $130 in profit.
Calculating Implied Probability
Every set of odds implies a probability. This is crucial for identifying value bets.
For negative odds: Implied probability = |Odds| / (|Odds| + 100) For positive odds: Implied probability = 100 / (Odds + 100)
For example, -150 odds imply a 60% probability (150/250), while +130 odds imply a 43.5% probability (100/230).
The Importance of Line Shopping
Different sportsbooks often offer different odds on the same event. Getting +115 instead of +105 doesn’t seem significant on a single bet, but over hundreds of bets, these differences compound into meaningful returns.
Key Takeaways
- Learn to quickly convert between odds formats
- Understand implied probability to identify value
- Compare odds across multiple sportsbooks
- Remember that odds include the sportsbook’s margin