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For the non-gambler odds can be quite confusing. Even some avid gamblers have difficulty understanding ‘odds’. An odd is the probability of winning a bet and earnings based on how much is wagered. It is important to understand it if the aim is to make money.
Types of Betting Odds
The main ones are American or Moneyline odds, decimal odds and fractional odds.
- American or Moneyline odds: This is more commonly used in America. This is normally quoted as a negative or positive. This indicates how much money you have to bet to win $100. For example, odds of +110 mean betting this amount to win $100. A win results in the bettor getting the original $110 back plus winnings of $100 for a total of $210.
- Decimal odds: This is the most common type used worldwide. It is also believed to be the easiest to understand. To figure out your winnings, you simply multiply your bet by the decimal odds, so with odds of 3.00, you would get $300 on a $100 bet.
- Fractional odds: Also known as UK or traditional odds. It means the amount that bettors will win depends on how much they bet. Odds of 5 to 1 (5/1) will pay five times the amount wagered, for example $100 on a $20 bet. The reverse is true if the odds are one to five (1/5). With fractional odds, the bettor gets back the original sum wagered plus their winnings.
The recreational gambler may not have much interest in the odds since they gamble for fun. Serious gamblers need to know so that they can bet with the greater chance of making money.
