Odds Explained

Welcome to the Sports Betting Odds section of The Sports Geek. If you are new to sports betting and don't understand how to read betting odds (+150, -110, +2200, etc) we will lay it all out for you and help you learn how the betting odds work.

1. Odds Conversion Guide To convert decimal odds to fractional, subtract 1.00 and then find the nearest whole integers (so 3.75 - 1.00 becomes 2.75/1, or 11/4). To convert moneyline odds to decimal, if the moneyline is positive, divide by 100 and add 1. If it is negative, divide 100 by the moneyline amount (without the minus sign) and add 1.
2. Odds are displayed in either American, Decimal, or Fractional formats, and serve two purposes: They signal the implied probability of the outcome they are attached to They indicate how much money you could win betting on that outcome.Be careful relying on the odds alone when evaluating the probability an event will occur.
3. Horse Racing Odds Explained What Do Horse Racing Odds Mean? If you see a horse listed at 7-2 odds for the first time, or a mutuel payoff amount of $5.00, you may not quite understand what that means if you want to place a bet. But understanding how to read horse racing odds is actually simple. Odds are the return you can expect to get if the.
4. Fixed-odds betting is a form of wagering against odds offered by a bookmaker or an individual or on a bet exchange. It involves betting on an event in which there is no fluctuation on the payout. In Australia, the practice is usually known as 'SP betting' Calculating fixed odds.

Thinking of getting into live cricket betting? Click here to understand how cricket betting odds work and the different cricket betting options you have.

Sports Betting Odds Explained

Many people don't know how to read or calculate sports betting odds, so below we have done our best on explaining how betting odds work. The most common type of sports betting odds used in North America are the American style odds which we explain below.

American Style Sports Betting Odds

Most online sportsbooks will list their odds in what is called 'American Odds'. There are a couple different versions of sports betting odds, but these American Odds are the most common odds used. Reading and understanding sports betting odds can bet a little confusing to beginners, so we have provided an example below using two NFL football teams:

American Odds

• Matchup Odds
• New England Patriots +120
• Pittsburgh Steelers -140

The number shown in the bracket represents the odds. The American Odds have two components to them, the first being the positive or negative sign, and the second being the number that follows the sign.

The sign in front of the number indicates whether placing a wager on that outcome will pay out more money then you have wagered or less money then you have wagered. If the odd is negative (-) it means that outcome is more likely to happen and placing a bet on that outcome would payout less than the amount you wagered, while a positive (+) odd shows that the outcome is less likely to happen and it would pay out more than the amount you wagered.

The next step is figuring out exactly how much the bet pays out, which is where the numbers in the odds come into play.

A listed odd with a – sign in front of it, such as the -140 in our example above, shows us how much money you would need to wager in order to win $100. So using the -140, this would show us that you would need to bet $140 in order to win $100 in profits. You can easily substitute the $100 bet for a $10 bet by moving the decimal place over one spot, showing us that you would need to wager $14 in order to win $10 in profits.

Examples:

A listed odd with a + sign in front of it, such as the +120 in our example above, shows us how much money you would win on a $100 bet. Using the +120 odds, it shows us that a $100 bet on that outcome would pay out $120 in profits. Again this can easily be converted into smaller or larger size bets. A $10 bet on +120 odds would pay out $12 in profits.

Examples:

Below is an example of NFL betting odds taken from an online betting site.

In this example you can see Los Angeles is listed at +130 ($100 bet pays $130 plus of course your original wager back) and New England is listed at -150 ($150 bet pays $100).

The great thing about betting online is that the online sportsbooks will do the calculations for you before you place your bet. You can click on the outcome or team you would like to bet on, and then input the amount you wish to wager and it will show you your potential pay out before you confirm your bet.

Ready To Start Betting?MyBookie and BetUS are my two favorite sportsbooks and make betting very easy. You will also get a Free Money Bonus at each sportsbook if you follow either link above.

Decimal Style Sports Betting Odds

Decimal style odds are used mostly in Europe, and are pretty easy to understand. To calculate the decimal style odds all you will need to do is simply multiply the amount you wish to wager by the decimal odds shown and you will get your payout. For example it may look something like this:

If you wanted to place a $10 wager on the USA at 2.40 you would simply need to multiply your $10 wager by the 2.40 odds (10 x 2.40) to find out that the payout is $24. It is important to realize that with decimal style odds it includes the amount you wagered, so to find out profits you would need to subtract your wager ($24 – $10) to find out your potential payout is $14 in profits.

If you wanted to place a $10 wager on Brazil you would again just multiply $10 x 1.55 to find out that you would win $15.50 total or $5.50 in profits.

Decimal style betting odds are very simple to understand, but you won't see them displayed in many North American sportsbooks. With that said, most online betting sites will allow you to chose the style of betting odds you want displayed, with American odds set as the default.

So, what are Pot Odds?

In poker, pot odds are the ratio between the size of the pot, including bets made in the current round, and the cost of a call to try to win the pot. For example, if there are 10$ in the pot, and your opponent bets 5$, you need to pay 5$ to potentially win 15$. Therefore, your pot odds are 3 to 1.

'Pot odds' is a great tool that many top poker players use when they are facing a decision. By comparing pot odds to the probability of winning the hand, one can deduct if calling is profitable or not. So, it works like expected value, helping you make the right choice, but reduces the necessary calculations.

When faced with a bet, to calculate your pot odds, you only need to compare the money that you will gain if you win the hand, the current pot including your opponent's bet, to the money required to make the call. Then, to choose the right course of action, you must compare these pot odds to your estimation of the odds against you winning the hand.

Odds Explained Percentage

If the pot odds are higher than the odds against you winning the hand, it means that when you win, you will be extracting enough of a reward to make the call worth it! On the contrary, if the pot odds are lower than the odds against you winning the hand, the amount that you will be gaining when you win will not make up for the losses. So, in this case, the right action is to fold.

Mathematical Explanation of Pot Odds

Let's work some simple math to show the reasoning behind using pot odds as a shortcut. If a call has +EV (the same proof applies for -EV), this means that:

EV (Call)= P(win) * $(pot)- P(lose) * $(call) > 0, or

P(win) * $(pot) > P(lose) * $(call), and by deviding by P(win)*$(call)

$(pot) / $(call) > P(lose) / P(win)

So the pot odds (on the left of the equation) are higher than the odds against you winning the hand (on the right).

A Simple Example

We will demonstrate this concept with a relatively simple example.

You are facing two tight opponents. You are holding J♥9♠, and on the turn, the board is 10♥4♠8♣2♦, so you have a straight draw. The pot is 70$, and you have only 20$ more in your stack, while your opponents both have bigger stacks.

The first opponent to act goes all-in and the second opponent calls. So, what should you do?

How to Calculate Pot Odds?

To calculate the pot odds, you must compare the money that you may potentially win to the money that is required for making the call. You may win 110$ (70$ in the pot plus 20$ from each opponent) and need 20$ to make the call. Therefore, the pot is offering you 110 to 20, or 5.5 to 1.

Let's now calculate the probability against you winning the hand. You have an open-ended straight draw (or up and down, two way). This means that you have two ways of making your straight (hitting a Queen or a seven) or a total of 8 outs. It is clear that one or both players have you beat. You are probably up against some combination of an overpair, two pair or a set. However, whatever your opponents have, all of your 8 outs will give you the nut straight.

Another aspect to consider is the possibility of another player drawing for the same straight. This possibility would make you split the pot when you make your hand and affect your calculations. However, given your starting hand and the fact that your opponents are tight, you are not concerned with one of them holding J9. So you can safely rule out sharing the pot when you hit your draw.

So, you have 8 cards that will make you win. The remaining 38 of the total 46 unseen cards will make you lose. The odds are 38 to 8 against you making your winning hand or 4.75 to 1. the pot odds you are being offered are better (5.5 to 1), making it a good call. This means that, even though you are an underdog to win the hand, the pot is offering enough of a reward to make the call worth it.

Calculating the Expected Value for Validation

You managed to reach the correct decision without doing the extra math of calculating the expected value. For demonstration reasons, the expected value of a call is:

EV = P(win)*$(win)-P(lose)*$(lose) = (8/46)*110 – (38/46)*20 = 2.61$

So on average, you win about 2.6$ each time you make that call.

Odds Explained Synonym

Working with Percentages Instead of Odds

There are many software products, like Flopzilla or Equilab, that calculate your equity against an opponent's range in terms of percentage. You can check out the tutorial on Hand Ranges to learn how to work with ranges. Whether you work with such software, or you are just accustomed to using percentages, you may want to be able to convert pot odds into percentages you can work with. Let's look at how to do this.

To compare pot odds to equity percentages, you need to convert your pot odds to a percentage of your bet versus the final pot size, including your call. To do so, you have to:

First, divide the amount of the call by the size of the final pot. For example, if the pot is 10$ and you are facing a 5$ bet, you need to divide 5 (your call) by 20, the final pot amount, so you get 0.25.

Second, convert this into a percentage. By multiplying with 100, you can convert your result into a percentage you can work with. So, 0.25 equals 25%.

Now, to see if calling is +EV, you need to compare this percentage to your equity. If your equity is higher, the call has a +EV!

In this example you can see Los Angeles is listed at +130 ($100 bet pays $130 plus of course your original wager back) and New England is listed at -150 ($150 bet pays $100).

The great thing about betting online is that the online sportsbooks will do the calculations for you before you place your bet. You can click on the outcome or team you would like to bet on, and then input the amount you wish to wager and it will show you your potential pay out before you confirm your bet.

Ready To Start Betting?MyBookie and BetUS are my two favorite sportsbooks and make betting very easy. You will also get a Free Money Bonus at each sportsbook if you follow either link above.

Decimal Style Sports Betting Odds

Decimal style odds are used mostly in Europe, and are pretty easy to understand. To calculate the decimal style odds all you will need to do is simply multiply the amount you wish to wager by the decimal odds shown and you will get your payout. For example it may look something like this:

If you wanted to place a $10 wager on the USA at 2.40 you would simply need to multiply your $10 wager by the 2.40 odds (10 x 2.40) to find out that the payout is $24. It is important to realize that with decimal style odds it includes the amount you wagered, so to find out profits you would need to subtract your wager ($24 – $10) to find out your potential payout is $14 in profits.

If you wanted to place a $10 wager on Brazil you would again just multiply $10 x 1.55 to find out that you would win $15.50 total or $5.50 in profits.

Decimal style betting odds are very simple to understand, but you won't see them displayed in many North American sportsbooks. With that said, most online betting sites will allow you to chose the style of betting odds you want displayed, with American odds set as the default.

So, what are Pot Odds?

In poker, pot odds are the ratio between the size of the pot, including bets made in the current round, and the cost of a call to try to win the pot. For example, if there are 10$ in the pot, and your opponent bets 5$, you need to pay 5$ to potentially win 15$. Therefore, your pot odds are 3 to 1.

'Pot odds' is a great tool that many top poker players use when they are facing a decision. By comparing pot odds to the probability of winning the hand, one can deduct if calling is profitable or not. So, it works like expected value, helping you make the right choice, but reduces the necessary calculations.

When faced with a bet, to calculate your pot odds, you only need to compare the money that you will gain if you win the hand, the current pot including your opponent's bet, to the money required to make the call. Then, to choose the right course of action, you must compare these pot odds to your estimation of the odds against you winning the hand.

Odds Explained Percentage

If the pot odds are higher than the odds against you winning the hand, it means that when you win, you will be extracting enough of a reward to make the call worth it! On the contrary, if the pot odds are lower than the odds against you winning the hand, the amount that you will be gaining when you win will not make up for the losses. So, in this case, the right action is to fold.

Mathematical Explanation of Pot Odds

Let's work some simple math to show the reasoning behind using pot odds as a shortcut. If a call has +EV (the same proof applies for -EV), this means that:

EV (Call)= P(win) * $(pot)- P(lose) * $(call) > 0, or

P(win) * $(pot) > P(lose) * $(call), and by deviding by P(win)*$(call)

$(pot) / $(call) > P(lose) / P(win)

So the pot odds (on the left of the equation) are higher than the odds against you winning the hand (on the right).

A Simple Example

We will demonstrate this concept with a relatively simple example.

You are facing two tight opponents. You are holding J♥9♠, and on the turn, the board is 10♥4♠8♣2♦, so you have a straight draw. The pot is 70$, and you have only 20$ more in your stack, while your opponents both have bigger stacks.

The first opponent to act goes all-in and the second opponent calls. So, what should you do?

How to Calculate Pot Odds?

To calculate the pot odds, you must compare the money that you may potentially win to the money that is required for making the call. You may win 110$ (70$ in the pot plus 20$ from each opponent) and need 20$ to make the call. Therefore, the pot is offering you 110 to 20, or 5.5 to 1.

Let's now calculate the probability against you winning the hand. You have an open-ended straight draw (or up and down, two way). This means that you have two ways of making your straight (hitting a Queen or a seven) or a total of 8 outs. It is clear that one or both players have you beat. You are probably up against some combination of an overpair, two pair or a set. However, whatever your opponents have, all of your 8 outs will give you the nut straight.

Another aspect to consider is the possibility of another player drawing for the same straight. This possibility would make you split the pot when you make your hand and affect your calculations. However, given your starting hand and the fact that your opponents are tight, you are not concerned with one of them holding J9. So you can safely rule out sharing the pot when you hit your draw.

So, you have 8 cards that will make you win. The remaining 38 of the total 46 unseen cards will make you lose. The odds are 38 to 8 against you making your winning hand or 4.75 to 1. the pot odds you are being offered are better (5.5 to 1), making it a good call. This means that, even though you are an underdog to win the hand, the pot is offering enough of a reward to make the call worth it.

Calculating the Expected Value for Validation

You managed to reach the correct decision without doing the extra math of calculating the expected value. For demonstration reasons, the expected value of a call is:

EV = P(win)*$(win)-P(lose)*$(lose) = (8/46)*110 – (38/46)*20 = 2.61$

So on average, you win about 2.6$ each time you make that call.

Odds Explained Synonym

Working with Percentages Instead of Odds

There are many software products, like Flopzilla or Equilab, that calculate your equity against an opponent's range in terms of percentage. You can check out the tutorial on Hand Ranges to learn how to work with ranges. Whether you work with such software, or you are just accustomed to using percentages, you may want to be able to convert pot odds into percentages you can work with. Let's look at how to do this.

To compare pot odds to equity percentages, you need to convert your pot odds to a percentage of your bet versus the final pot size, including your call. To do so, you have to:

First, divide the amount of the call by the size of the final pot. For example, if the pot is 10$ and you are facing a 5$ bet, you need to divide 5 (your call) by 20, the final pot amount, so you get 0.25.

Second, convert this into a percentage. By multiplying with 100, you can convert your result into a percentage you can work with. So, 0.25 equals 25%.

Now, to see if calling is +EV, you need to compare this percentage to your equity. If your equity is higher, the call has a +EV!

Conversion Table

An Example Using Pot Percentages

Let's take a look at a different example, this time using percentages.

A solid opponent raised preflop from the middle position, and you called from the button with K♥Q♥. The flop was A♥5♥4♠, and your opponent check-raised all-in your semi-bluff flop bet.

There is 80$ in the pot, including your bet and your opponent's all-in, and you have to call 40$ more to match his bet. What should you do?

Let's calculate your pot odds in terms of percentage. To do so, you have to:

First, divide the amount of the call by the size of the final pot. So 40/120 = 0.33

Baseball Odds Explained

Second, convert this into a percentage. We multiply 0.33 by 100 to get our percentage, 33%.

Now, we have o try to calculate your equity against your opponent's range of hands he would go all-in with. You estimate that your opponent open-raises from middle position with a 15% range, like bellow.

Using Flopzilla we can see that, even if your opponent does not bluff and goes all-in with top pair or better, or a flush draw, like bellow, your equity is over 37%.

Odds Explained

Since your equity against his range is higher than 33% (your pot odds in percentage), calling is +EV!

In a Nutshell

Using pot odds is an excellent way of making quick estimations on the table and choosing the right course of action. Even when there are subsequent betting rounds, pot odds are useful as they can help you understand the value of what is already in the pot relatively to your stack. However, when there are subsequent betting rounds in the hand, you need to consider the possibility of winning extra bets when you hit your hand. This concept is known as implied odds, in contrast to the expressed odds that the pot is offering you at any given moment.

In the next tutorial, we will present the concept of implied odds and how it is used to make educated decisions when there are further betting rounds. Please leave any comments or questions that you may have!

This tutorial is part of the Advanced Poker Strategy Course. You can continue to the next tutorial on Pot Commitment!