Betting Odds: How they work, how to read them and what they mean?

Everything you need to know about UK betting odds, including how they work, how to read them and and how to use them when placing bets.

Betting is an age-old practice that has evolved dramatically over the years, and one of the key components of successful betting is understanding odds.

Whether you're placing a wager on a sports event, a horse race, a political election or even the Eurovision Song Contest, odds play a crucial role in defining how much you can win and the likelihood of your chosen outcome.

We delve into how betting odds work, the different formats they come in, and what they mean for bettors.

What are betting odds?

Betting odds are numerical expressions that represent the probability of an event occurring, alongside the potential payout associated with that event.

They serve two primary functions: first, to indicate how likely an outcome is, and second, to calculate how much money you can win if that outcome occurs.

The odds are established by bookmakers based on various factors, including statistical analysis, historical performance, and public sentiment.

How to read betting odds?

Fractional odds

Commonly used in the UK, fractional odds express the profit relative to the stake (they are shown as a fraction, such as 5/1 or 10/3).

For a fraction such as 5/1, this means that for every £1 you stake, you can win £5 in profit.

• 2/1 - Bookies pay £2 for every £1 staked
• 7/2 - Bookies pay £7 for every £2 staked
• 4/5 - Bookies pay £4 for every £5 staked

This type of odds makes it easy to see how much profit you stand to make compared to your stake.

Fractional odds to percentages

Before placing a specific bet, a bettor could take into account the profit and their wager to work out the percentage return if they win.

For example, odds of 4/1 would provide a 400% profit as the payout from the bookie, as well as 100% of the money wagered.

If the bettor wagered £10 and won, their profit would be £40 as well as the original £10 stake, yielding a total return of £50.

Punters can also use odds to determine the implied probability of something happening by using the following formula:

• Denominator / (denominator + numerator) x 100.
• For example, 4/1 would be:
• 1 divided by (1+4) = 0.2.
• 0.2 x 100 = 20, so there is a 20 percent chance of that event happening.

Decimal odds

Decimal odds are predominantly used in Europe, Canada, and Australia.

They are presented as a single number and represent the total payout you would receive for a winning bet, including your original stake.

For example, if you see odds of 3.00, this means that for every £1 you wager, you would receive £3 in return (including your initial stake) if you win.

Decimal odds to percentages

To calculate the percentage probability of betting odds shown as decimals, the formula is straightforward:

• 100 divided by the decimal.
• So for something at 3.00, the probability is 100/3 = 33.3 percent.

For a bet at 10.00, the probability would be 10 percent, and so on.

Moneyline odds

Popular in the United States, moneyline odds can be positive or negative.

Positive odds (+200) indicate how much profit you would make on a £100 stake, while negative odds (-150) tell you how much you need to wager to win £100.

• Positive Odds: +200 means that a £100 bet will yield £200 in profit.
• Negative Odds: -150 means you must bet £150 to win £100 in profit.

Moneyline odds to percentages

Calculating the of moneyline odds, especially when the moneyline is negative, is far more complex than calculating percentages for fractional or decimal odds.

To calculate moneyline odds, you need to adopt one of the two following formulas:

If the moneyline is negative, for example -120

• (-(-120) divided by ((-(-120)) + 100)
• 120 divided by (120 + 100)
• 120 divided by 220 = 0.545
• 0.545 x 100 = 54.5 percent

If the moneyline is positive, for example +120

• 100 divided by (180+100)
• 100 divided by 280 = 0.357
• 0.357 x 100 = 35.7 percent

Betting terminology

Ante Post

What does Ante Post mean?

Ante Post prices are often offered well in advance of an event. For example, you can seek Ante Post odds for a horse to win the Grand national in three months time where you could be offered a better price.

Banker

What is a banker?

A banker is typically a very strong favourite - a bet that punters may feel is a safe bet and one that has a high chance of landing.

Favourite

What is the favourite?

The favourite is the selection with the shortest odds to win; the most fancied winner.

Punter

What does a punter mean?

A punter is a customer or bettor - the person placing a bet with the bookmaker.

Selection

What is a betting selection?

A selection is the team, player, horse, greyhound etc than the punter has placed their bet on.

Stake

What is a betting stake?

The amount of money placed by the bettor on their selection.

Winnings

What are winnings?

The amount of money earned from a successful bet - the profit on top of the stake.