What is odds in sports betting
The coefficient is the probability of a certain outcome, taking into account the bookmaker’s margin. By the coefficient, determine the possible payout and net profit in case of a successful bet.
For most players, the European coefficient is convenient. It is written as a decimal, usually with two decimal places after the dot.
Determine the possible payout by multiplying the bet amount by the odds at the albertaonlinecasino.ca.
Margin in sports betting manitoba is the bookmaker’s commission included in the odds.
Calculate the margin as a percentage of the European coefficient using the formula:
(1 / K1 + 1 / K2 + 1 / Kn – 1) x 100, where K1, K2, Kn are the odds for the outcomes of one market, n is the number of choices in one market.
Read more about what margin is in bookmakers here:
What is margin in sports betting: how to calculate bookmaker commission, formula and examples
For example, in a hockey match between Spartak and Dynamo, bookmakers gave odds of 3.03 for a home win in regular time, 4.04 for a draw, and 2.17 for a guest win.
Let’s imagine that you decide to bet 1000 rubles on the victory of the hosts with a coefficient of 3.03. If Spartak wins in regular time, the payout will be 3,030 rubles: 1,000 x 3.03.
The main types of odds for bets in bookmakers
Consider two other types of coefficients from the three main ones and how to translate them into European:
British odds
Written as a fraction. Determine the potential profit when betting on British fractional odds by multiplying the stake amount by the value of the fraction.
Let’s imagine that in a football match between Lokomotiv and Zenit you bet 500 rubles on the victory of the hosts with a coefficient of 5/2. If Lokomotiv wins, the profit will be 1250 rubles: 500 x 5/2. You will receive 1750 rubles: 1250 + 500.
Convert British odds to European odds using the formula:
Ke = Kb +1, where Ke is the European odds and Kb is the British odds.
American
Write as an integer with a minus or plus sign.
The plus American coefficient shows the potential net profit with a bet of 100 rubles.
The negative American coefficient shows how much you need to bet for a potential net profit of 100 rubles.
For example, in a tennis match between Daniil Medvedev and Paolo Fognini, the bookmakers gave a coefficient of -417 for the victory of the Russian, and +320 for the Italian.
With a bet of 417 rubles on Medvedev, you can get 100 rubles of net profit. And it is enough to bet 100 rubles on Fognini in order to receive 320 rubles of net profit if the Italian succeeds.
Convert plus American odds to European odds using the formula:
Ke = Kap / 100 +1, where Ke is the European coefficient and Kap is the American plus.
Convert negative American odds to European odds using the formula:
Ke = 100 / (-Kam) +1, where Ke is the European coefficient and Kam is the American minus.
How bookmakers calculate the odds of an outcome
The coefficients are calculated in three steps.
Probability. First of all, bookmakers use the work of analysts who determine the probability of an event. Bookmakers buy data from analytical agencies or trust the opinion of their employees.
Calculation of coefficients. The results obtained are converted into coefficients.
Adding margin. Bookmakers put a margin into the odds to be in the black at a distance.
Let’s imagine that in the Barcelona-Sevilla football match, analysts estimated the hosts’ victory at 68%, the away team’s win at 10%, and the draw at 22%.
For European odds, divide 100 by each probability.
The line of the main outcomes of the match will look like this:
P1 for odds 1.47: 100 / 68.
X for 4.54: 100 / 22.
P2 for 10.00: 100 / 10.
For example, a bookmaker wants to set a margin of 6%. Then the sum of the probabilities will no longer be 100%, but 106%.
These extra 6% will be distributed depending on the previously calculated chances:
4.08% home win bonus: 6% x 0.68. Now 72.08%: 68% + 4.08%
1.32% to draw: 6% x 0.22. Now 23.32%: 22% + 1.32%
0.60% to guests’ winnings: 6% x 0.10. It will be 10.60%: 10% + 0.60%.
Then the bookmaker puts the odds in line, taking into account the margin:
P1 for odds 1.39: 100 / 72.08.
X for 4.29: 100 / 23.32.
P2 at 9.44: 100 / 10.60.
The coefficient in the bookmaker’s office reflects the opinion of analysts and includes a margin. Bookmakers quickly respond to changes that affect the outcome, and due to the margin they are in the black at a distance. For long-term profits, you must estimate the odds better than a team of professional analysts.