How To Read Odds

There are several basics that need to be covered when getting started with sports betting, one of which is learning how to read odds. Many new bettors overcomplicate the matter, which is why reading a guide beforehand is always the best way to go. The good news is that once you learn how to read sports betting odds, you are set no matter what sport you are wagering on. Odds formats remain consistent, the only aspect that changes are the numbers. This is also true in relation to where you place your sports bets; whether at a land-based sportsbook, a sports betting site, or a mobile app, odds should be read in the same way.

There are three different ways that odds are presented, which include American, Decimal, and Fractional odds. For obvious reasons, you are almost guaranteed to find American odds at legal Pennsylvania sportsbooks. That being said, it is still beneficial to become familiar with all three odds types because you may still see them elsewhere. This is especially true when it comes to online sports betting sites and line shopping. Below, you will find explanations and examples of each odds type.

American Odds

First, we will discuss American odds since you will see them the most. American odds will either represent a favorite with a (-) sign or an underdog with a (+) sign. When wagering on the favorite, your original bet will always be more than the amount that you will potentially win. Betting on underdogs will yield a higher win amount that what you risked. Here is an example:

Philadelphia 76ers -225 vs. Boston Celtics +180

Whenever you bet on the favorite, the odds represent how much you must wager to win $100. So you would need to wager $225 to potentially win $100 if betting on the Philadelphia 76ers at -225 odds. When betting the underdog, the odds show how much you stand to win from a $100 bet. So that means you would receive $180 in winnings on a $100 Celtics wager. Take a look at another example below.

Villanova Wildcats -315 vs. Texas Tech Red Riders +225

In this example, Villanova is a heavy favorite at -310 betting odds. You would have to bet $310 to win $100. If you were to make a $100 bet, your win would be $32.26 for a total payoff of $132.36 ($100 original stake + $32.26 win = $132.26 payout). You could bet $100 on Texas Tech and get $225 if they win the game.

Fractional Odds

Fractional odds are commonly called “UK odds” because this is where they are most common. The fractional format represents a win/risk ratio that is relatively easy to understand. Take a look at the example below:

Minnesota Vikings 2/7 vs. Philadelphia Eagles 7/4

To bet on the Philadelphia Eagles at 7/4 odds means that you win $7 for every $4 wagered – again, the win/risk ratio. So if you were to bet $100 on the Eagles, you would win $175. For the Vikings, you would win $2 for every $7 wagered, meaning you could potentially win $128.57 on a $100 wager. Keep in mind that if the fraction is less than 1, your risk will be higher than your potential win (aka betting on the favorite). Fractions greater than 1 have lower risk and higher reward (underdog).

Decimal Odds

You are the least likely to come across decimal odds as a Pennsylvania sports bettor. This format is commonly used in Canada, Australia, and some European countries. Decimal odds may look complicated but they are actually the simplest odds type. Rather than just displaying your profit, decimal odds represent your total profit from a bet. You just multiply the decimal by the amount of your wager and you are done.

Pittsburgh Pirates 2.5 vs. Philadelphia Phillies 1.50

If you are betting on the Philadelphia Phillies with $100, your total winnings would be $250 (2.5 odds x $100 risk = $250). If betting on the Pittsburgh Pirates, a $100 bet would yield $150 if you win (1.50 odds x $100 bet = $100). A quick rule of thumb with decimal odds is that 2.0 is the breakeven mark. Decimals less than 2 are equivalent to betting on a favorite, while decimals over 2 represent the underdog.

How To Read Odds FAQs

Do I Have To Bet In $100 Increments?

No, you can bet any amount that you prefer. Our examples are based on $100 bets because it is the universal way that odds operate. By looking at -150 for example, you can quickly see that you would need to bet $150 to receive $100. Or when looking at +275 odds, you immediately know that you can win $275 from a $100 wager. The common use of the $100 bet is just to make it easier to gauge the payout you can expect from a bet. You can choose to wager any amount that is within the minimum or maximum set by the sportsbook.

What Is Meant By The Favorite And The Underdog?

Most betting lines will have a clear favorite and a clear underdog. The favored team just means that bookmakers believe they have the better chance of winning. The underdog is the team that oddsmakers predict will lose the game. Every sports fan knows that upsets happen every day, so that is why it’s important to take advantage of bets where you think the underdog can pull through. Take the Eagles opening as 5-point underdogs against the New England Patriots in Super Bowl LII. The Eagles were +155, so bettors won $155 for every $100 wagered.

How Do I Calculate My Payoff?

The way you calculate your payoff will depend on the type of odds. We will focus on calculating the payoff for American odds. If betting on the favorite, you can use the following formula: Potential Profit = Stake / (Odds/100).

So, if you are betting on -175 odds with $100, it would look like this: