Betting Odds Explained: Probability & Numbers

• Betting odds indicate how likely an event is going to happen
• There are several different types of odds formats
• Odds tell you how much money you can win

When looking at bookmakers’ odds, the first thing to do is convert them into probabilities. Since most people are more familiar with probabilities than with odds, it’s easier to work with these. The calculation method is extremely simple. In order to determine the probability, you just have to divide 1 by the odd and then multiply it by 100.

Betting Odds Explained

Example 1

Odds = 1.76

Probability = 1/1.76 x 100 = 56.818%

Example 2

Odds = 2.64

Probability = 1/2.64 x 100 = 37.879%

As you can see in these two examples, calculating probability from the odds is simple. Now that you know how to convert odds into probabilities, it’s time to understand how the bookmakers protect themselves.

Betting Odds Explained: Bookmaker’s Overround

The overround – also known as the margin, vigorish, or juice – is the bookmaker’s commission. In other words, it is what the bookmaker charges for taking a bet. Since bookmakers are in business to make money, they create a scenario where they always have the advantage. That share allows the bookies to create new odds, run their site, set up promotions, and so on. In order to be able to bet profitably it is beneficial if the bookmaker’s overround is as small as possible. Usually, bookmakers charge somewhat around 5% commission on your bets or winnings. However, first we will continue our Betting Odds Explained guide by helping you understand this matter by taking a look on how to calculate the bookmakers’ overround.

Example 1

Premier League – Manchester City vs Arsenal

1X2 Odds – 2.33 / 3.50 / 3.27

1X2 Probabilities – 42.918% / 28.571% / 30.581%

42.918 + 28.571 + 30.581 = 102.07%

Bookmakers Overround = 102.07% – 100% = 2.07%

Example 2

Portuguese League – Sporting vs Braga

1X2 Odds – 1.38 / 5.06 / 9.77

1X2 Probabilities – 72.464% / 19.763% / 10.235%

72.464 + 19.763 + 10.235 = 102.462%

Bookmakers Overround = 102.462 – 100 = 2.462%

As shown in the previous examples, the overround is calculated when subtracting the offered probabilities to the fair ones. Looking to the first example, 2.07% means that the bookmaker gains 2.07€ for every 100€ invested on that event.

As you might remember, we highlighted the top leagues to bet in a previous article. One of the reasons for the preference is the competitive prices presented by the bookmakers on those competitions. The two prior examples show the bookmaker presents a lower overround on the Premier League when compared to the Portuguese League.

Moreover, you can find out more about the commission each individual bookmaker charges in our detailed sportsbook reviews. As you may expect, some bookies charge you less than others, so it’s definitely worth comparing the statistics.

Betting Sites Reviews

Comparing Betting Odds

We would like to conclude our Betting Odds Explained guide with a great recommendation for all ambitious punters. Due to the fact that there are countless betting odds, you need to make sure that you are selecting the best ones. Therefore you will need to compare them.

We as your sportsbook affiliate are interested in providing you with the best options only. There are several bookies that have better odds than others for different types of sports. Pinnacle, for example, is one of the best bookmakers if you want to bet on football. However, if you want to bet on basketball, you should check out the Betfair odds.

In order to compare betting odds more easily we have created our own odds comparison. You can use it any time you want to compare odds. We provide an overview of all major and minor upcoming events there. Currently, there are odds for football, basketball, tennis, eSports, American football, volleyball, baseball, rugby, ice hockey, golf, horse racing, motor racing, greyhounds, boxing, UFC, and cricket.

Start comparing odds now!