Betting odds are a numerical expression of an event happening, typically in a sporting event or horse race. The American odds represent the likelihood of something happening and something not happening. The most basic betting market is for the toss of a coin in which both outcomes have an even chance of happening and not happening.
There are six different odds formats, which are mainly used in countries of their origin. The methods by which odds are expressed are as follows:
American Odds show the winnings from a €/$/£100 bet or the stake that is required to win €/$/£100. These odds are the equivalent of odds against and odds-on in fractional odds. Even money is shown as +100 because a €/$/£100 bet returns €/$/£200 which is a profit of €/$/£100 plus the stake.
Odds Conversion
The art of bookmaking is to create a market that attracts business while having a built-in profit margin for the bookmaker. A market is said to be over round when the odds represent a book of over 100%. There is no direct calculation for the American Odds profit margin in a three-way market. An odds conversion table shows the odds expressed in American and fractional formats.
Outcome 1 | +100 | 1/1 | 100 divided by (1 + 1) / 1)) = 50.00 |
Outcome 2 | +200 | 2/1 | 100 divided by (2 + 1) / 1)) = 33.00 |
Outcome 3 | +300 | 3/1 | 100 divided by (3 + 1) / 1)) = 25.00 |
TOTAL: 108.00
This book has an over round or theoretical profit margin of 8.00%.
Conversion Table
Here is an odds conversion table for odds-on, Evens and odds-against.
American | -200 | +100 | +200 |
Decimal | 1.50 | 2.00 | 3.00 |
Fractional | 1/2 | Evens | 2/1 |
Hong Kong | 0.5000 | 1.0000 | 2.0000 |
Indonesion | -2.0000 | 1.0000 | 2.0000 |
Malay | 0.5000 | 1.0000 | -0.5000 |
Examples
Here are examples of American Odds for three of the most popular US sports and the most basic betting market, which is the win single:
American Football
Home Win (including Overtime) | +150 | 6/4 | 100 divided by (6 + 4) / 4)) = 40.00 |
Away Win (including Overtime) | -162.5 | 8/13 | 100 divided by (8 + 13) / 13)) = 61.90 |
TOTAL: 101.90.
This book is over round or has a profit margin of 1.90%.
Tennis
Player 1 | +100 | 1/1 | 100 divided by (1 + 1) / 1)) = 50.00 |
Player 2 | -125 | 4/5 | 100 divided by (4 + 5) / 5)) = 55.56 |
TOTAL: 105.56.
This book is over round or has a profit margin of 5.56%.
Horse Racing
Horse 1 | +200 | 2/1 | 100 divided by (2 + 1) / 1)) = 33.33 |
Horse 2 | +400 | 4/1 | 100 divided by (4 + 1) / 1)) = 20.00 |
Horse 3 | +330 | 10/3 | 100 divided by (10 + 3) / 3)) = 23.09 |
Horse 4 | +800 | 8/1 | 100 divided by (8 + 1) / 1)) = 11.11 |
Horse 5 | +750 | 15/2 | 100 divided by (15 + 2) / 2)) = 11.76 |
Horse 6 | +900 | 9/1 | 100 divided by (9 + 1) / 1)) = 10.00 |
TOTAL: 109.30.
This book is over round or has a profit margin of 9.30%.
The same calculation applies regardless of the total number of potential outcomes. As a rough guide, a typical betting market will be compiled with a profit margin of about 1.5% to 2% per runner or possible outcome. Profit margins tend to be smaller in US sports using American Odds.
MOST POPULAR ONLINE CASINO & SPORTSBOOK WIKI TERMS
Floor-man
Who Is the Floor-man ? The member of staff whose duty it is to take care of visiting…
Scout Gaming
Scout Gaming is a Norwegian fantasy sports as well as pool betting provider that recently inked an agreement…
Dream Gaming
Dream Gaming creates international standard online casino games. Online players enjoy a great experience time after time guaranteed…
Royal Panda Limited
Despite being a relatively new player in the online gaming and betting industry, Royal Panda Limited has a…
Lightning Box
Founded in 2004 by a group of mathematicians with over 20 years of experience, Lightning Box is “a…
Hong Kong Odds
Betting odds are a numerical expression of an event happening, typically in a sporting event or horse race.…
Random Logic
Random Logic is a popular company in their casino gaming industry. This company is owned by a well-known…
Pocket Rockets
What Is Pocket Rockets ? The term “Pocket rockets” refers to a situation whereby a participant is given…