Understanding Odds – Fractional vs. Decimal vs. Moneyline
2 minutes
Last Updated: February 20, 2024
If you’re considering entering the world of betting—whether it’s in a casino, sports betting, or any other form—it’s crucial to grasp the concept of odds. The three primary types of betting odds include fractional (British) odds, decimal (European) odds, and money line (American) odds.
These represent alternative ways of expressing the same odds and bear no distinction in terms of payouts. Essentially, this implies that the likelihood (or the percentage probability) of an event happening can be converted and presented using any of the previously mentioned odds.
Understanding American/Money Line Odds
Money line odds, also known as “American” odds or “U.S.” odds, are widely used in the United States for sports betting. These odds are distinctive, with favorites indicated by a minus (-) sign, representing the amount needed to be wagered to win $100, and underdogs marked with a positive (+) sign, indicating the amount won for every $100 staked. This is the most common odds for online betting sites like Videoslots. In 2018, the Supreme Court granted permission to U.S. states to legalize sports betting at their discretion.
Understanding British/Fractional Odds
Fractional odds, also known as “British” odds, “U.K.” odds, or “traditional” odds, are widely used by bookmakers in Britain and Ireland and are typically expressed with a slash (/) or hyphen (-). As one of the most common types of odds, these are very common to see on sports betting sites that include soccer, cricket, and rugby.
For instance, a fractional representation of 6/1 (six-to-one) odds indicates that for every $1 wagered, you would win $6, in addition to receiving your initial dollar back. Essentially, this ratio represents the profit won in relation to the initial bet. Therefore, if you place a $10 stake at 6/1 and emerge victorious, your total payout would be $70 ($60 profit + $10 stake).
Understanding European/Decimal Odds
These odds are known for their simplicity and immediate indication of favorites and underdogs through the displayed numbers. In the context of decimal odds, the number represents the amount one wins for every $1 wagered, with the number itself representing the total payout rather than just the profit.
Unlike other formats, the stake is already incorporated into the decimal number, eliminating the need to add back the initial wager for total payout calculations. For instance, if you wager $10 on odds of 2.5, you can expect to get $25 if your bet wins. This amount includes your initial $10 bet and a $15 profit.
The higher the total payout (represented by the decimal odd), the less probable and riskier it is perceived for the listed options to emerge victorious. Remember to gamble responsibly if the risks run larger than just the bets.
Psychological Factors to Consider
A study featured in the Journal of Gambling Studies highlights an interesting trend: as players accumulate more winning hands, especially among novices, their overall earnings tend to decrease. This might seem paradoxical, but there’s a simple and logical explanation for this.
This phenomenon arises because multiple victories often result in smaller stakes, leading to extended play. The more one engages in play, the greater the likelihood of encountering occasional substantial losses.
Behavioral economics plays a crucial role in this scenario. Players may persist in playing the lottery, driven by the hope of a significant win that could compensate for losses, or the positive reinforcement from a winning streak may compel continued play.
In both instances, it’s not rational or statistical reasoning guiding the decision but the emotional high of a win that motivates further play. This again enforces the importance of ensuring responsible gambling and being certain that you don’t spend more than what you can afford.
