For those new to betting, understanding how odds work can be one of the biggest initial hurdles.
Betting odds indicate the probability of an outcome and determine how much you can win from a wager.
There are three main types of odds used globally: fractional, decimal, and moneyline.
Each format represents the same thing but in different ways, and understanding them can help you make informed decisions when placing bets.
What Are Betting Odds?
In simple terms, odds reflect how likely an event is to happen.
They are set by bookmakers and factor in both the probability of an event and the bookmaker’s margin.
The higher the odds, the less likely the outcome, but the greater the potential payout.
The lower the odds, the more likely the outcome, but with smaller returns.
Fractional Odds
Common in the UK, fractional odds are written like 5/1 (“five to one”) or 2/7 (“two to seven”).
A 5/1 bet means for every $1 you stake, you will win $5 in profit if your bet is successful.
So, betting $10 at 5/1 returns $50 profit plus your $10 stake, totaling $60.
A 2/7 bet means you need to bet $7 to win $2 in profit, plus your original stake.
Decimal Odds
Popular in Europe and Australia, decimal odds are displayed as a number like 1.50 or 3.75.
The number represents your total return (profit + stake) per unit wagered.
For example, odds of 3.75 mean a $10 bet would return $37.50 ($27.50 profit + $10 stake).
Decimal odds are easy to understand: just multiply your stake by the odds.
Moneyline Odds
Moneyline odds, commonly used in the U.S., are shown with a plus (+) or minus (-) sign.
A negative number (e.g., -150) shows how much you need to bet to win $100.
A positive number (e.g., +200) shows how much profit you’d make on a $100 bet.
So, a -150 bet means you must stake $150 to win $100.
A +200 bet means a $100 wager returns $200 profit plus your $100 stake.
Comparing Odds Formats
While the formats may appear different, they all reflect the same underlying probabilities.
Some bookmakers let you switch between formats on their site.
Online odds converters can also help compare values across formats quickly.
Final Thoughts
Understanding odds is essential for any bettor.
It’s not just about how much you can win but also knowing how likely your bet is to succeed.
Whether you prefer fractional, decimal, or moneyline, the key is to calculate your risk and reward clearly before placing any wager.