Betting Odds: Complete Guide to Understanding and Using Odds

Last update at 9 January, 2026⏲️ Reading time: 14 minutes

Fact checked by Andy Heaford

Fact checked by

Andy Heaford

Favourite Quote: "He who does not take risks, does not get to drink champagne"

Before you start betting, there are basic things you must familiarize yourself with, and one of them is betting odds. Betting odds are like the ABC of betting. Not understanding how they work makes everything difficult. We believe it’s one of the most important things you must learn. As a matter of fact, every successful sports bet depends on it.

Without odds, you won’t be able to bet on football, tennis, cricket, or any other sport. Odds are designed to tell you the likelihood of an outcome and how much you can potentially win. In this guide, we’ll break down everything you need to know about betting odds, we’ll teach you how to calculate them, and you’ll also be learning how to use them better. Let’s get started!

What Are Betting Odds?

In the simplest terms, betting odds show how likely an event will happen, and they also play an important role in how much you can win if your bet is correct. If you’ve ever opened a betting site, you’ve probably seen what football betting odds look like.

They are the numbers that explain the risk and reward of a type of bet. The bookmakers set these odds, but before they do, they first study team & player performance, statistical data, and they follow the news. The bookmaker’s goal is to predict how likely each outcome is and ensure they make a profit.

For you as a bettor, your job is to study these odds and see if a bet is worth taking. When you see low odds, it means the bookmaker believes the event is more likely to happen but will pay less; meanwhile, when you see high odds, it simply means the likelihood of the event happening is low, and the pay will be more. If you understand how these things work, you’ll be at an advantage.

Types of Betting Odds Explained

Betting odds usually come in 3 formats. They may appear differently, but they mean the same thing. There are essentially three types of betting odds used by bookmakers all over the world, and they include decimal, fractional, and American odds. They all appear differently, but they all show one thing, which is how likely an outcome is and how much you can win.

Decimal odds are mostly common in many parts of Europe.
The fractional odds are the type of odds that bookmakers in the UK and Ireland use.
The American odds are mostly used in the United States.

If you’re the type of player who prefers to bet on international bookmakers, then you should pay more attention to how it all works. Below, we’ll be breaking down these types of odds to help you see how they work and how you can use them to place bets.

Decimal Odds Format

The decimal odds are mostly used by bookmakers in Europe. Decimal odds are shown in decimal odds, and they show you the total amount you will win for your stake. Because of the way they appear, it’s very easy to calculate decimal odds. An example of how decimal odds appear is 2.0. When you see odds of 2.0, and you want to calculate your potential payout, this is how to do it.

The formula is: Return = Stake × Odds

Let’s say you bet $10 on odds of 2.00. If you want to calculate the potential return, you’ll need to multiply your stake by the odds. In this case, our stake is $10 while the odds are 2.0.

Return = Stake × Odds
Return: 10 × 2.00 = $20
Profit: $20 - $10 = $10

This is one of our favourites, mainly because of how easy it is to calculate and comparing betting odds is much easier with this format. Some bookmakers set odds as high as 15.0, and a higher decimal odds simply means the probability of that event occurring is lower, but the return will be massive. Meanwhile, lower decimal odds show that the probability of the event occurring is higher.

Fractional Odds Format

This is the type of odds that you’ll find on most UK and Ireland bookmakers' sites. Horse racing betting odds are usually written as 5/1, 10/3, or 7/2. This is a bit more complex than decimal odds, but let’s break it down. Take 5/1 odds for example, 5, which is the numerator, is the representation of the profit you could make, while 1, which is the denominator, is a representation of how much you need to win that profit. So this is it, 5/1 means you win $5 profit for every $1 you stake. So, if you bet $10 on odds of 5/1, then your potential return will be $50 profit.

If the betting odds offered are 1/2, it means you’ll win $1 for every $2 you stake. So, if you stake $10, your profit without your stake will be $5. Plus profit will be a total of $15.

To better understand the probability of these odds, here’s the formula you should use: Probability = Denominator ÷ (Numerator + Denominator)

Let’s say we have odds of 4/1 and want to know the probability of these odds. Here’s how we do it

Numerator = 4
Denominator = 1
Probability = 1 ÷ (4 + 1) = 1/5 = 0.20 = 20%

So a 4/1 odds means that the bookmaker believes that there is a 20% chance of this outcome happening. If we have odds of 1/4, the bookmaker is simply saying, the chance of the event occurring is 80%.

American Odds Format

What we know to be America odds is also called moneyline odds, and they are mostly used by bookmakers in the United States. American odds usually come in two forms, which are positive and negative numbers. The positive odds are usually shown as +200, and they show how much profit you’ll make from a $100 stake. The negative betting odds are usually shown as -150, and they show how much you need to stake to win $100. This format is really helpful for identifying favorites and underdogs.

The positive odds usually show the underdog, which means the event is less likely to happen.

Let’s say the bookmaker offers odds of +250; it simply means you’ll win $250 profit for every $100 you bet. The negative odds show a favorite; this means the event is more likely to happen. For example, you’re offered odds of –200, which means you must stake $200 to win $100 profit.

If you want to calculate your return, here’s how to do it:

For positive odds: Profit = (Stake × Odds) ÷ 100
For negative odds: Profit = (Stake × 100) ÷ |Odds|

The American odds make it easy to see risk and reward, especially in U.S. sports betting markets.

How Bookmakers Set Betting Odds

It’ll interest you to know that bookmakers do not just randomly set betting odds; they have laid out strategies before determining the odds an event deserves. The process usually starts with statistical analysis. They take time to study a team and a player’s past performance, they go through their head-to-head records, the injuries of key players, and guess what? They actively follow the news.

You may have noticed how bookmakers change odds before games or even mid-game. That’s because they study market conditions. So, they monitor where players like yourself are placing bets, and they adjust the odds to balance their risk. If they observe that too much money is being placed on a specific tennis betting odds, the bookmaker may shift the odds to encourage players to bet on the other side. They do that to ensure that they don’t face a large loss.

Another thing they consider is the overround, which is also called vig or juice. This is a small margin that is built into the odds. The overround is what bookmakers use to earn profit even if the event’s outcomes occur as predicted. Lastly, bookmakers focus on news updates and insights from experts before setting odds, which is why odds on the same event can be different on different bookmakers.

Popular Sports Betting Odds

UK bookmakers offer more sports than the other, but one that that’s constant is that every one of these sport have their unique markets. Football and cricket, for example, have markets like match results, totals, or player performance. If you understand how football betting odds, cricket betting odds, and tennis betting odds operate, you’ll be able to make better betting decisions. In this section, we’ll be explaining to you some of the most popular sports and their markets to help you better spot opportunities.

⚽ Football Betting Odds

Football, which is also known as soccer, is the world’s most popular sport with the most advanced betting markets. Some of the bets you’ll find in football betting are match results (1X2), over/under goals, and both teams to score. Football betting allows players to place accumulator bets, so you get higher returns. The odds are usually influenced by team form, injuries, home advantage, and recent performance. You’d notice that major tournaments like the Champions League or World Cup usually have changing odds as the matches approach.

If you understand how football betting odds show probability and potential payout, it’ll help you find value in domestic leagues and international competitions.

🎾 Tennis Betting Odds

Tennis betting is a bit different because it is all about betting on individual players. You can place a match winner bet, a set winner, or a total games bet. It has an in-play betting section where tennis betting odds change as the match goes on. So, in the in-play betting section, you’ll notice that if a player is winning easily, their odds get lower, and the underdog’s odds get higher.

Think of it like this: if you spot a player dominating at the beginning, but the odds are still high, you might have a good chance to win big.

🏏 Cricket Betting Odds

Cricket betting markets include Test, ODI, and T20 formats. The cricket market supports match winner, top batsman or bowler, and even total runs or boundaries. Major tournaments like the ICC World Cup or IPL also have odds for overall winners and special stats. Factors that contribute to cricket betting odds change include pitch conditions, weather, team line-ups, and player form. For example, a good bowler on a pitch that suits their style will have higher chances to take wickets.

If you know how this works, it’ll help you find opportunities for value bets in any cricket match.

Major Event Betting Odds

We’ve seen how major competitions like the FIFA World Cup, Olympics, or Super Bowl attract more bettors than any other tournaments. World Cup betting odds and Eurovision betting odds usually cover outright winners and individual match outcomes. Because these tournaments draw many people, even people who aren’t regular bettors, find themselves placing bets for fun, so more bets are placed during these tournaments, which is why odds change very fast. If you understand how odds are structured for major events, it’ll help you to spot value throughout the competition.

🏆 World Cup Betting Odds

As earlier stated, the World Cup has some of the highest numbers of betting markets. During the World Cup, you’ll be able to bet on the outright winner, group stage results, or special bets like the Golden Boot for top scorer. These World Cup betting odds keep changing as teams win, lose, or get eliminated. Bookmakers usually give the most popular teams smaller odds, while underdogs usually have bigger odds. You see, factors like Injuries, form, and the patterns of fans' betting also affect the odds.

If you take the time to study and follow these changes, you can be able to spot good opportunities and potentially increase your returns. The World Cup is approaching, and it’ll be coming with many betting events; take advantage of this tournament.

🎤 Eurovision Betting Odds

In Eurovision, factors like politics, culture, and popularity, as well as performance, all influence the result of Eurovision. You can bet on the overall winner, which country will finish in the top 10, or even which song will get the most points. Eurovision betting odds can change as artists release their songs, perform in rehearsals, or gain media attention. Factors like public opinion and fan reactions can also push the odds up or down. Some countries are historically favored, and countries with less support or fewer past wins are given higher odds.

Specialist Sports Betting Odds

In sports betting, some sports have specialized betting markets that work differently from sports like football or tennis. Some of these sports are horse racing, golf, darts, and motorsports. Horse racing, golf, and darts betting odds depend on things like the players’ skills, the conditions, and how the event is structured. Take horse racing betting odds, for example, which look at the horse’s form, the track, and the jockey, while golf betting odds usually depend on how well a player fits the course. Because these sports carry more detail, you need to do a bit more research.

🐎 Horse Racing Betting Odds

In horse racing, there is a lot of information to consider. A horse’s recent performance, the track conditions, and how people are betting all affect the odds. There are the Starting Prices (SP), which are the horse racing betting odds right before the race begins, and ante-post odds, which are early odds offered days or weeks before the race.

Here, you can also place each-way bets and get a return if the horse you bet on wins or finishes in one of the top places. There are also race cards that show details like the horse’s age, weight, jockey, trainer, and past results. This basic information will help you choose better bets.

⛳ Golf Betting Odds

In golf, you can bet on who will win the tournament, who will finish in the top spots, or which player will beat another in a matchup. Factors that contribute to the golf betting odds changing include the player’s recent form and how well they play on that course. Weather and course difficulty also affect the odds.

🎯 Darts Betting Odds

Dart betting odds are set on markets like match winners, tournament winners, total 180s, highest checkout, and correct scorelines. Bookmakers consider factors like how consistent a player has been, their mental focus, and recent performance. Darts markets are usually very lively during the PDC World Championship.

How to Calculate Betting Odds and Potential Returns

For you to fully understand risk and reward, you need to know how to calculate betting odds and potential profit. In decimal odds, you need to multiply your stake by the odds to get the return.

Let’s say you have odds of 2.0, and you’re staking $20, your return will be $40.

Here’s a more detailed calculation.

Return = Stake × odds
$20 × 2.00 = $40

For fractional odds, let’s say you have odds of 5/1 and you’re staking the same $20. Remember that 5/1 odds mean you’ll get $5 profit per $1 stake.

Profit = Stake × odds
Profit = 20 × 5/1
Profit = $100

To calculate the potential return for American odds is a bit different. Let’s say you have odds of +500 and you’re staking. The formula is:

Profit = (Stake × American Odds) ÷ 100
Profit = ( 20 × 500 ) ÷ 100
Profit = 10,000 ÷ 100 = $100

Understanding Value in Betting Odds

You’ve probably heard about value betting, and if it’s your first time, it's all about finding bets where the betting odds are higher than the true probability of an outcome. To be able to spot a value bet, you have to compare odds from different bookmakers. Sometimes, one bookmaker will offer better odds than others for the same event. We’ve seen this happen many times; you just need to use your own knowledge and statistics to estimate the true chances of the outcome occurring. If you can understand this concept, you’ll make better betting decisions that’ll increase long-term profits.