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How Do Sports Odds Work

Decimal odds are one of the most common forms of writing betting odds, especially in Europe, Canada, and Australia. They are simple and easy to understand, so both novices and expert punters can use them. Let's see how decimal odds work on betting sites.

Decimal Odds Explained

Decimal odds represent the total amount that will be paid out for any bet if you win. This format is very easy to operate since it is given as just one number and, in most cases, rounded to two decimal places. The number explains how much a currency unit you use to place your bet returns to you if you are the player.

How to Calculate Potential Return Using Decimal Odds

To derive a potential return from decimal odds, multiply the stake by the given decimal odds.

Potential Return = Stake × Decimal Odds Potential Return = Stake × Decimal Odds

Let's go through an example to clarify that.

• Example Bet Stake: $10 Odds: 2.50 You have a bet worth $10 at 2.50 odds placed on a team.

• Solution $10 (stake) × 2.50 (odds) = $25

• Potential Return: If you win your bet, you receive $25. This amount is composed of your initial bet of $10 plus the remaining $15 of profit.

Interpreting Decimal Odds

• Odds More than 1: Decimal odds greater than 1 denote that the odds will gain you profit if your bet wins. If your bet wins, it is a payment of three times your bet—a 3.00.

• Odds of 1.00: Decimal odds of 1.00 simply tell you that your return will be equal to your stake, making it an even-money bet. In practice, you rarely see decimal odds of 1.00 except where there are no transaction costs or for a risk-free bet.

Advantages of Decimal Odds

• Simplicity: They are very easy to understand, and potential returns are simple to calculate.

• Clear: Total return, including stake,  is very clearly determined.

• International Use: They are popular in most countries, making it more convenient for international bettors.

Converting Decimal Odds to Other Odds Formats

If you are more familiar with other types of odds, then you can convert decimal odds to fractional or American odds as follows:

To Fractional Odds: Simply deduct 1 from the decimal odds and convert the result to a fraction. For example, if the decimal odds are 3.50, (3.50 - 1) = 2.50. This is 5/2 in fractional odds.

To American Odds: If the decimal odds are more than 2.00, then the American odds are positive, and the formula used is to multiply decimal odds minus 1 by 100. If the decimal odds are less than 2.00, the American odds are negative and are -100 divided by the decimal odds minus 1. For example, if the decimal odds are 3.50: (3.50 - 1) * 100 = +250. For example, if the decimal odds are 1.50: -100 / (1.50 - 1) = -200.