Types of odds applied by bookmakers

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Odds tell us about the possible prize amount. It has to be kept in mind that the higher the odd, the lesser (in terms of what the bookmaker has established) the probability that the result concerned might actually be the case.

There are three types of odd presentation by bookmakers:

  • decimal–e.g. 1.4 (mainly, European);
  • fraction (British)–e.g. 2/5;
  • moneyline (U.S.)–e.g. -250.

The most popular odd presentation system in use among European bookmakers, including Poland, is the decimal standard.

The following example clearly shows what one and the same odd may look like depending on its presentation (with use of one of the above-specified systems):

FOOTBALL MATCH: BRASILvs.POLAND [TIE]
European: 1.403.755.00
British:2/511/44/1
U.S.:-250+275+400

European odds and how to calculate the prize

The European odd is in the form of a decimal number, e.g. 1.4, 2.4, etc. The prize is calculated by multiplying the placed stake and the odd. Let us assume that you have bet on Brazil as the winner, the betting stake being EUR 200. Using the decimal system, the prize is calculated as follows:
1.4 * EUR 200 = EUR 280

It is assumed for the purpose of the above example that you have placed your bet with a Web-based bookmaker and received 100 per cent of the prize (without the 12% tax being deducted, as is otherwise the case with ground operators).

The profit from the winning bet is calculated according to the formula:
prize – stake = profit

In this particular case, if you have invested EUR 200 in the bet and the prize based on the bet equals EUR 280, your profit is as follows:
EUR 280 – EUR 200 = EUR 80

British odds and prize calculation

The British odd is used, as the name would suggest, in the UK alone. The format is, for instance, 4/5, 5/8, and so on. In spite of a not-too-friendly look of the presentation, calculating the prize is by no means complicated; the product of odd and stake make you directly aware of the profit you are to receive from the bet you have placed.

Using the earlier example and assuming identical criteria as for the European odd calculation, we receive as follows:
2/5 * EUR 200 = EUR 80
(the net profit you are to receive from the operator)

Obviously, in case you get your prize, the bookmaker will return the stake to you. Hence, the amount the bookmaker is to pay after the bet has been placed accurately is calculated thus:
stake * (British odd + 1) = payment from bookmaker (in case you have won the bet)

In the example under discussion, the result is as follows:
EUR 200 * (2/5 + 1) = EUR 280

British odds and prize calculation

The British odd is used, as the name would suggest, in the UK alone. The format is, for instance, 4/5, 5/8, and so on. In spite of a not-too-friendly look of the presentation, calculating the prize is by no means complicated; the product of odd and stake make you directly aware of the profit you are to receive from the bet you have placed.

Using the earlier example and assuming identical criteria as for the European odd calculation, we receive as follows:
2/5 * EUR 200 = EUR 80
(the net profit you are to receive from the operator)

Obviously, in case you get your prize, the bookmaker will return the stake to you. Hence, the amount the bookmaker is to pay after the bet has been placed accurately is calculated thus:
stake * (British odd + 1) = payment from bookmaker (in case you have won the bet)

In the example under discussion, the result is as follows:
EUR 200 * (2/5 + 1) = EUR

U.S. odds and prize calculation

Such odds are mainly in use in the United States, as you can probably guess. They are categorised into positive and negative. A negative odd tells you how much you have to bet to win EUR 100; a positive odd tells you how much is the prize if the stake equals EUR 100. A positive/negative odd is respectively marked ‘+’/‘-’; the mark is placed before the figure standing for the amount.

We will present the prize calculation using our example and the earlier-assumed criteria.

  • How to calculate the prize and profit in case of negative odd?

You are still betting on Brazil; the odd is -250 (i.e. negative).

prize:
stake * (1 + 100/U.S. odd) = payment from bookmaker (in case you have won the bet)
EUR 200 * (1 + 100/250) = EUR 280

profit:
stake * 100/ U.S. odd = net profit from the bet placed
EUR 200 * 100/250 = EUR 80

  • Now, how to calculate the prize and profit in case of positive odd?

Calculation of the prize is different for a positive odd; hence, let us assume you have placed a bet on ‘tie’ and the odd equals +275.

prize:
stake * (1 + U.S. odd/100) = payment from bookmaker (in case you have won the bet)
EUR 200 * (1 + 275/100) = EUR 750

profit:
stake * U.S. odd/100 = net profit from the bet placed
EUR 200 * 275/100 = EUR 550

Now, using diverse types of odds and calculation of prize and profit based on a bet placed should cause you no more problems.

Odds tell you what is the bookmaker’s individual estimation of appearance of a given result in a sports event. This information is indispensable to calculate the possible prize with a given bet. Each pick has an odd ascribed specifically to it. Its amount may vary by bookmaker, and bookmakers tend, in a way, to compete against one another based on such diversity.