If you are intending to begin betting, whether sports betting, casino gambling, or any other form, then it’s necessary to know about the odds. Placing bets wisely needs to have a good hold on the main kinds of betting odds and also the talent to read and interpret their various linked formats.
Moreover, the laws for betting in India differ from state to state. It means that for placing bets in India or any of its states, the state is allowed to formulate its laws for such betting and gambling activities. Moreover, it is not clear whether online betting in India is legal.
Main types of Online Betting Odds
Online betting odds are of three main types and these are as follows:
- American odds (U.S.)
- Fractional odds (British)
- Decimal odds (European)
These three types are just the alternate means of offering the same thing and hold no variation in terms of payouts. This implies that the probability or chances of an event happening can be changed and showcased in any of the above-mentioned types of odds.
American odds
They are also called Moneyline odds. It is famous in the United States. It works on the negative and the positive sign that it either means the amount one is required to wager (sum of money on the outcome of the unpredictable event) to win, for example, $100 or the amount one could win for every $100 staked.
How Moneyline odds work
The negative sign (-) indicates the odds for favorites and also the amount you are required to stake to win for example $100. While the positive sign (+) indicates the other group (underdogs) and shows the amount win for every for example $100 staked. In duo cases, winners get back their initial amount along with the amount won. If the probability of winning the favorite is more than the gap between the odds for the favorite and the underdog increases. American odds can be explained with the help of an example as follows:
Example: +220 and -220
The profit calculation with American odds differs due to the sign before the number.
The formula for profit calculation of negative number: payout= (100/odds) × stake
The formula for profit calculation of positive number: payout= (stake/100) × odds
Further explanation is: if the initial stake is $150, then
- For negative payout= (100/220) × 150 = $68.18
- For positive payout = (150/100) × 220 = $ 330
Fractional odds
It is the ratio of the profit (amount) win to the stake. It is also called traditional odds. It is popular in Britain or U.K. and so popular among British or Irish bookies. It represents a fraction, therefore, written with a slash or hyphen. It is most commonly used by a few of the world’s largest bookmakers. Most websites that are run for betting in India use this type of betting odds.
How do fractional odds work?
The fractional odds appear like A/B in which A is the amount you win for B, the amount from your stake. Therefore, the payout calculation formula is as follows:
Payout = (A+B) × (Stake/B)
Further, it is explained by taking example 6/1 odds present that for every $1 the wager will get $6 profit. Hence, for the stake of $10:
Payout = (6+1) × ($10/1) which equals to $70.
Decimal odds
Decimal odds are generally famous in Europe. It is also known as continental odds or digital odds. Besides Europe, it is also famous in New Zealand, Australia, and Canada. It represents the total amount you can win for a specific stake. Decimal odds are easy to understand and also to work with. These are also used for betting in India across various online gaming websites.
How decimal odds work
It can be calculated using the formula as follows:
Payout = stake × odds
For example, the decimal odds are 6.0 and the wager $2
Then payout = $2 × 6 = $12
Please note that this number contains the stake which you recover. However, for the profit calculation, the stake will be subtracted from it. For example, $12-$2 = $10.
So, $10 would be the pure profit.
How do betting odds work?
There are two ways of working of betting odds which are as follows:
- The first way represents the probability with which the event (for example, winning of a team) will happen.
- In a second way, they guess the amount that one can win if that particular event occurs.
Five to one odds
Five to one odds indicate that if the bet will be successful then every $1 wager would win you $5. When fractional odds are concerned then the number on the right shows how much you are required to stake while the number on the left reveals how much you win.
Which is better: negative or positive odds?
The negative numbers represent the favorites in the bet and show how much you are required to stake to win $100. While the opposite is true for positive numbers, they are associated with the other group that is the underdog and indicate the amount you win if you stake $100.
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