<p>In the world of sports betting, there may be one or two things that will appear unfamiliar to first-time punters, such as betting odds.</p> <p>To not only be a successful punter, but also get the most enjoyment out of each wager you place, it is important to understand what odds are, how they work and what they mean.</p> <p>So, how do betting odds work in sports betting? What are betting odds? How do you understand betting odds?&nbsp;Let’s find out&nbsp;all this and more today.</p> <p>Below is a comprehensive explanation of how odds work, what they mean and how to get the most bang for your buck. So, if you want to be the go-to guy for sports-betting in your group chat – read on!</p> <p>Odds are presented in numerous different formats all over the world.</p> <p>The English love their fractions, while the Americans prefer a system that only they can understand, typical!</p> <p>Luckily in Australia, just like our beer, beaches and healthcare, the way we display our odds is also superior.</p> <p>Before we get into the nitty gritty of how betting odds work and how we display them, it’s important to understand just exactly what they are.</p> <p>&nbsp;</p> <h2>What are Odds?</h2> <p>&nbsp;</p> <p>Betting odds are essentially a measurement of how much you can win if your wager is successful. They are set by bookies as a representation of what they believe the chances of a specific outcome occurring are.</p> <p>Sports betting odds in their purest form are simply just a reflection of what the probability of a particular event happening is.</p> <p>Take a coin toss for example, we know that there is a <strong>50%</strong> chance of the outcome being heads and a <strong>50%</strong> chance of the outcome being tails.</p> <p>If you could bet on this, the odds would reflect this even split of probability. Just as they reflect the probability of one AFL team beating another or the probability of Nick Kyrgios winning the Australian Open.</p> <p>&nbsp;</p> <h2>How to Read Betting Odds</h2>

<p>If you’re wondering how do betting odds work in Australia, like&nbsp;most of Europe (they know what’s up) betting odds are presented in what is known as decimal format. Whereas in the UK they use fractional odds and America have a favourites vs underdogs-based system known as moneyline odds. This is not to be confused with line betting, which is something entirely different. Consult our <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/line-betting-explained">How Does Line Betting Work</a> guide to help alleviate any further confusion on that front.</p> <p>Meanwhile, back in Australia, where things actually make sense, decimal odds are expressed as simple numbers and correlate to the amount a winning bet would collect on a $1 wager.</p> <p>For example, say Australia are paying $25&nbsp;to win the FIFA World Cup</p> <p>&nbsp;</p> <ul> <li>A&nbsp;<strong>$10</strong> stake at <strong>$25&nbsp;=&nbsp;</strong>a return of <strong>$250</strong></li> </ul> <p>&nbsp;</p> <p>Does it get any more straightforward than that?</p> <p>With decimal odds, if they are set at 1.50 and you place a $1 bet, a winning bet would return a total of $1.50. That’s your $1 stake plus 50 cents profit.</p> <p>Therefore, if you bet <strong>$1</strong> on Australia paying <strong>$1.01</strong> to defeat Scotland at the Rugby League World Cup, you would receive a whopping one cent of profit. So please, try and find a bit more value with your bets.</p> <p>&nbsp;</p> <h2>How are Betting Odds Calculated?</h2> <p>&nbsp;</p> <p>Whether it’s line betting, head-to-head or a massive Multi, all odds are calculated based on probability and the likelihood of a potential outcome becoming reality.</p> <p>As the probability of an outcome changes, so do the odds, so it’s up to you to read between the lines and effectively attempt to make a more accurate prediction than the bookie.</p> <p>In the lead up to an event, probability of outcome and therefore odds are constantly changing due to a number of different variables. Injuries to key players or a surge in people backing a particular outcome are among the main reasons why.</p> <p>These fluctuations occur across multiple fronts, such as overall, head-to-head and line betting markets.</p> <p>&nbsp;</p> <h2>What's The Difference Between Fixed Odds &amp; Tote Odds</h2>

<p>This brings us to fixed odds and why it pays to get in early. Fixed odds mean that when you place your bet, the odds are set and cannot change.</p> <p>If you place a wager at odds paying $6.00 but in the lead up to the game, they shorten to $4.50, you still get paid out at odds of $6.00 if the wager is successful.</p> <p>In the world of fixed odds, the early bird truly does get the worm, so if you know something other people don't know about a certain team, player or horse, load up as quickly as you can.</p> <p>Odds for major sports such as NRL, AFL, tennis, football and cricket are usually always fixed. However, in the racing world (horses and greyhounds), there is an alternative to fixed odds.</p> <p>This alternative is known as tote odds and is covered more in depth in our <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/what-is-tote-betting">What is a Tote Betting</a> guide. Tote odds are the approximate odds that a bookie believes you will receive. This calculation is based on the number of bets placed into the pool or tote up to that point. These odds will continually change based on how much additional money is placed on each outcome. Tote odds can fluctuate dramatically but can also yield huge dividends.</p> <p>Choosing between fixed or tote odds comes down to the punter. However, in racing there are certain bets such as <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/what-is-a-trifecta">Trifectas</a> and <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/what-is-a-quaddie">Quadrellas</a> whose odds are determined exclusively by the tote.</p> <p>So if you're looking to have a punt on the race that stops the nation then delving into our <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/how-to-bet-on-horses-a-horse-racing-betting-guide">how to bet on horses guide</a> might be helpful.&nbsp;</p> <p>After you've completed that head on over to our <a href="https://www.sportsbet.com.au/huddle/horse-racing/melbourne-cup/the-melbourne-cup-2024">2024&nbsp;Melbourne Cup Tips &amp; Preview</a> piece to get all the insights into which roughie to back for your Melbourne Cup Trifecta's</p> <p>&nbsp;</p> <h2>How To Calculate The Probability Of Bets</h2> <p>&nbsp;</p> <p>For those looking to go above and beyond the usual “I’ve got a good feeling about this team” or “that horse has a funny name, I’ll pick it” techniques when trying to place a successful wager, you can use odds to calculate the probability of a result.</p> <p>Now just because you didn’t listen at all in maths class doesn’t mean you need to stop reading, we’re about to do all the intellectual heavy lifting for you.</p> <p>Using odds to calculate the probability of an outcome couldn’t be easier, especially with decimal odds.</p> <p>The formula for calculating probability is simply just dividing a $1 stake by the odds on offer and then multiplying this figure by 100 to see the figure displayed as a percentage.</p> <p>So, let’s say a horse is paying $7.50 to run first.&nbsp;</p> <p>Using the above formula</p> <p>&nbsp;</p> <ul> <li>&nbsp;$1.00 ÷ $7.50 x 100 = <em><strong>13.33%</strong></em></li> </ul> <p>&nbsp;</p> <p>At an estimated 13% chance of winning, that horse really puts the rough in roughie.</p> <p>While it is important to do the maths, just because a certain outcome has a perceived low probability does not mean you shouldn’t bet on it. The key to successful sports betting is finding value where others can’t.</p> <p>Remember when Leicester City were paying $5000 to win the Premier League in 2015? Well, they did, despite being rated a 0.02% chance of doing so based on probability.<br /> A humble $10 stake would have netted you a staggering $50,000 payout. Sometimes it really pays to bet against the odds.</p> <p>Regardless of whether you’re punting on the footy, loading in on the favourite at the Melbourne Cup, or trying your hand at line betting, you should now have a comprehensive understanding of how betting odds work.</p> <p>&nbsp;</p> <h3>How do Betting Odds Work for Horse Racing</h3> <p>Just the same as asking yourself how do odds work in sports betting, Horse betting odds do not differ. They work the same for horse racing as all other sports, the only difference is the markets available. But don’t worry we have you covered, if you’re interested in learning more then read our <a href="https://www.sportsbet.com.au/huddle/punter-iq/guide/how-to-bet-on-horses-a-horse-racing-betting-guide">How to Bet on Horses </a>betting guide.</p> <p>So now instead of saying “that’s pretty odd,” when someone is talking to you about a roughie you should be backing, or if someone asks what are betting odds? Now you know! Good luck.</p>