A guide to sports betting odds: How to read and understand them

Have you ever considered the impact of odds on earnings? There is a reason why so many punters focus on odds when choosing online betting sites or even placing wagers. After all, the higher the odds, the better the earnings. However, the relationship between odds and earnings is not this simple. And to make money from odds, you must understand what they are and how they work. Let’s get into it:

We often talk of people or things defying the odds. But what are they, and what do they represent? Odds are a measure of probability. Let’s use the coin toss example where we assume the probabilities are two: heads or tails. In such a case, the odds will be 50: 50. The same principle can work in sports. For example, if teams A and B compete, the odds for A and B will differ. They will depend on several factors, such as the strength of the teams, management, who is away and who is at home, etc. And the culmination of these factors will result in one team having better odds (a higher probability) of winning. Thus, odds are a representation of the favorite and the underdog.

So, how do odds work in sports betting? While the typical approach would be to assign odds based on probability alone, bookies do not do this. Instead, they also consider the following:

What does this mean? While odds represent probability, they feature some subjectivity, making them unreliable as analytical tools. You can use them to get a general idea of public opinions. But if you wish to wager on a team, you should do your research as it will be more objective.

Odds are also useful in helping you gauge how much you can make from your wager. Let’s show you how this works:

We have covered that odds represent probability but also feature vig and public opinion influence. So, the best way to use them is to gauge what you can make from wagering on either team. Let’s start by covering the different types of odds. You may come across the following odds based on the bookie you use:

The odds work the same but have slight adjustments in their representation. We will consider the two most common ones (decimal and American odds) to show you how they work. And we will use an example of two teams, A and B, where A is the favorite and B is the underdog.

From these examples, you can see that the premise is the same. Bookies offer lower odds and earnings on favorite predictions and better terms for favorites. You can use this to decide if you want to root for a team once you calculate your possible take-home.