Betting odds are a numerical expression of an event happening, typically in a sporting event or horse race. The Fractional 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:
Fractional Odds do not include the stake with the winnings and they are most often used to express probabilities in a betting market in the UK. The calculation is the stake by the odds plus the stake.
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%. Here is the calculation for the Fractional Odds profit margin in a three-way market:
|Outcome 1||1/1||100 divided by (1 + 1) / 1)) = 50.00|
|Outcome 2||2/1||100 divided by (2 + 1) / 1)) = 33.00|
|Outcome 3||2/1||100 divided by (3 + 1) / 1)) = 25.00|
This book has an over round or theoretical profit margin of 8.00%.
Here is an odds conversion table for odds-on, Evens and odds-against.
Here are examples of Fractional Odds for three of the most popular betting sports and the most basic betting market, which is the win single:
|Home Win||2/1||100 divided by (2 + 1) / 1)) = 33.00|
|Draw||9/4||100 divided by (9 + 4) / 4)) = 30.77|
|Away Win||6/4||100 divided by (6 + 4) / 4)) = 40.00|
This book is over round or has a profit margin of 3.77%.
|Player 1||1/1||100 divided by (1 + 1) / 1)) = 50.00|
|Player 2||4/5||100 divided by (4 + 5) / 5)) = 55.56|
This book is over round or has a profit margin of 5.56%.
|Horse 1||2/1||100 divided by (2 + 1) / 1)) = 33.33|
|Horse 2||4/1||100 divided by (4 + 1) / 1)) = 20.00|
|Horse 3||10/3||100 divided by (10 + 3) / 3)) = 23.09|
|Horse 4||8/1||100 divided by (8 + 1) / 1)) = 11.11|
|Horse 5||15/2||100 divided by (15 + 2) / 2)) = 11.76|
|Horse 6||9/1||100 divided by (9 + 1) / 1)) = 10.00|
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.
MOST POPULAR ONLINE CASINO & SPORTSBOOK WIKI TERMS
Bingo gives millions of players something to look forward to. It’s a game that offers you the chance…
Old Skool Studios is created by a group of talented, entrepreneurial-minded Casino gaming professionals, and has been in…
Founded in 2011, Zeus Play is a fresh face in the casino business. Based in Bulgaria, it is…
What is Freeze-Out? Commonly featured in tournaments, freeze-out refers to a style of poker. One after the other,…
The company came a long way since its foundation in 1995 in New York City. Their name is…
Shortened as GLI, Gaming Labs International launched in 1989 and since then have certified over 1,757,470 items. It…
In 1999, BetOnline starts offering gambling services from Rochester in New York. The company moves in 2000 to…