How Do Odds Work in Betting?

Learn about the three popular betting odds formats—British (fractional), European (decimal), and American (money line)—and how to interpret them.

  • American (Money Line):
    • Odds for favorites are accompanied by a minus (-) sign and indicate the amount you need to bet to win $100.
    • Odds for the underdogs are accompanied by a positive (+) sign and indicate the amount won for every $100 you bet.
  • British (Traditional):
    • A fractional listing of x/y (x-to-y) odds would mean that you win $x against every $y you wager.
    • Tp = ( S ( N / D ) ) + S
      • Tp is the total payout
      • S is Stake (Bet)
      • N/D is the numerator/denominator of the fractional odd (e.g., 28/6)
  • European (Decimal Odds):
    • Amount one wins for every $1 wagered
    • Tp = S * D
      • Tp is the total profit
      • S is Stake (Bet)
      • D is the decimal odd

Source: How Do Odds Work in Betting?

Advertisement