If you are a sports betting fan or if you want to start betting, then it is essential to understand how sports betting odds work. But also how they are calculated by the bookmakers in order to bet on the best possible odds. 

A good understanding of the notion of odds is necessary to place your sports bets. In this article we will explain how sports odds work, how they are calculated and which ones you should bet on to maximise your chances of winning. 

What are sports betting odds?

To begin with, we need to define what sports betting odds are and what they represent in terms of the probability of the outcome of the match, as well as their influence on the potential money to be won. 

Definition of sports betting odds

In the world of sports betting, odds are an indicator of the potential winnings from a match. It is used to calculate the money the bettor stands to win if he makes a correct prediction on the outcome of the match. This index is set by the bookmakers according to a method that we will see a little later and according to the probability of an event occurring. 

sports betting odds

Here is a simple example to illustrate the concept: The toss of a coin. The probability of the coin coming up heads or tails is 50% for each outcome. Thus the odds will be 1-1, so if a player bets €3 on heads and the event occurs then he will have won his initial bet. 

The odds of a sports bet therefore determine the probability of an event occurring and the potential winnings if it does occur if the punter has made the correct prediction.

Odds and probability 

In the world of online sports betting, an odds is an indication given by a bookmaker of the outcome of a match. The calculation is done in the following way: (1/odds) x 100. For example, if a match has odds of 1.45 then this is calculated as: (1/1.45) x 100 = 69%. It therefore estimates that the team or player has a 69% chance of winning the match. 

In a sports match, it is considered that the higher the odds of a match, the lower the probability of the event occurring. So if a team or a player has high odds it means on the one hand that he is not considered a favourite by the provider and on the other hand that his chances of winning are low. In this way, the higher the odds, the greater the potential payout if the bettor’s prediction is correct, but this represents a so-called risky bet.  

Here are some examples of the odds and their probability to assess your winning potential: 

  • 1.01 represents a safe bet as the player has a 99% chance of winning
  • 1.10 represents a 91% probability 
  • 1.50 represents 2 out of 3 chances, i.e. 66% chance of winning
  • 2 is 50% or a 1 in 2 chance
  • 5 is 20%, or a 1 in 5 chance
  • 10 is a 1 in 10 chance, i.e. a 10% chance of winning

Maximum and minimum odds

For a sports bet, maximum and minimum odds are defined. The minimum odds applied to the bets is called the minimum odds. In general, it is 1.10, which represents an almost winning bet but generates small amounts of money. The maximum odds are those that cannot be exceeded for a bet, but there is no theoretical limit, unlike the minimum odds. 

In the case of live betting matches, it is possible for the odds to change during the course of the match, particularly if a team scores a point, receives a penalty or if an unforeseen event occurs that changes the outcome of the match, such as a player’s injury. 

When playing on combination bets, there will be no maximum odds as the odds are multiplied together. The final odds of the bet can therefore increase significantly, but if they exceed a certain winning limit set by the bookmaker then the bookmaker can cancel the validation of the combination bet.

How do sports betting odds work? 

Now that you know what sports betting odds are, we will explain how they work and how they are calculated by the bookmakers. We will also look at how to calculate the potential to win. 

How bookmakers calculate the odds ?

The odds for each event are calculated by the bookmakers based on two parameters. An artificial intelligence that will provide a first set of odds based on the statistics and averages of previous matches and players. The computer software will analyse the data and take into account the parameters that could influence the outcome of the match. Therefore, the odds provided by the software will reflect the performance of the team or the player. 

For example, for a football match, the odds of a match can be determined according to its ranking, the performance of the players in the match, the results of recent matches, etc. 

Then a human will analyse the odds provided by the software and modify them if necessary according to external parameters that can influence the match and that the AI cannot know. This explains why the odds for the same event can vary from one provider to another. Indeed, the final rating is fixed according to the appreciation of each provider and his way of calculating the ratings. 

How to calculate your earning potential?

Now we will see how you can calculate your potential winnings on a sports bet using the odds given by the bookmaker. To calculate your winnings you need to use the following formula: odds x stake = winnings. For example, if you bet €5 on a match with odds of 1.5 then you will get €5 x 1.5 = €7.5 if your prediction is correct. In the case of a combination bet, the odds are multiplied by each other. If all your predictions are good then your stake will be multiplied by the overall odds of all the bets. 

However, be careful not to mix profits and winnings, as winnings represent your stake multiplied by the odds of the sports bet, but the real profit is calculated by removing the amount of the starting stake. As a reminder, the profit is the amount won by the bettor when he has subtracted his initial stake from his winnings. 

What are the best odds?

Before you start betting on online sports, it is important to bet on the best possible odds to maximise your winnings. 

How do you recognise good odds?

Since the odds vary from platform to platform, bettors need to know how to recognize good odds on a game. By definition, good odds are those that will allow the bettor to make the most money on a given event. 

Indeed, the odds can vary on the same match from one bookmaker to another even if the team is favourite. It is therefore essential for the bettor to take the time to compare the odds before placing his bet and to position himself on the one that will be to his advantage in terms of profit.

For example, on a football match OM vs PSG, with OM as favourites, a first site can propose odds of 1.5 and another one of 1.8. By choosing the second bookmaker, the punter chooses the best odds and the one that will allow him to win more on this match if his prediction is correct. 

sports betting odds

Which platform to bet on to get the best odds? 

As we have seen, the odds on a match can vary from one bookmaker to another. It is therefore essential to bet with a betting operator that offers the best odds to ensure the best winning potential. 

At Casinozer, we always offer the best odds on the biggest sporting events! You can also visit specialised sites that compare the odds of different bookmakers.