How do American Odds Work?
Understanding the various types of bet odds could be tricky for a new user who is just delving into the sports betting world. This is mainly because betting odds come in different formats, including decimal and fractional odds.
However, one thing is sure. Understanding how to beat sportsbooks the American way will give you an edge. If you are new to odds and want to learn more, our experts have put together this guide to help you. Keep reading to learn more.
What are American Odds in Sports Betting?
American odds are used regularly by sportsbook websites that offer betting markets to US bettors. Sometimes, they are referred to as moneylines. Understanding them is less complicated than most other formats since they are displayed with either a plus (+) or minus (-) symbol. Here is an example of American odds on DraftKings, a popular American sportsbook.
These symbols show how much you need to wager to win $100.
What Do the Odds Mean – Betting Odds Explained
| Favorite | +1.20 |
| Draw | +0.25 |
| Underdog | -1.20 |
Betting odds are figures compiled by sportsbooks to indicate what they feel is the probability of an outcome happening in an event. Every event has specific results. For instance, in a football game between the Patriots and Green Bay Packers, there are two likely outcomes:
- The Patriots win
- The Green Bay Packers win
These are the kind of outcomes a sportsbook tries to predict using odds. They could be represented in the American way (+ or -), as a fraction(2/1), or as a decimal (2.0).
Related: NBA Public Betting Guide
How to read American Odds?
Understanding bet odds of betting lines is essential for an American bettor. This is because it gives you an idea of what to expect by taking on a particular team. So, knowing why the odds work together with how it works is instrumental to understanding your potential payout.
American odds always rely on the base amount of $100. As mentioned earlier, they are represented by + or – symbols which are very important.
If there is a (-) in front of the number/odds, the outcome is more likely to happen. It is usually reserved for the favorite team, which has a higher chance of winning the game. Wagering on this outcome will get you a lower amount than your bet if you win.
On the other hand, the (+) odd indicates a lower probability of the outcome occurring. It is reserved for the underdog or the team with less possibility of winning the game. If you wager on it and win, your payout will be more than your initial wager.
Here are good examples to help you understand these odds better.
Presuming you're betting on the Yankees as the favorite with odds of -130, you'll need to wager $130 to win $100. If the bet wins, you get $100 alongside your initial wager of $130.
For the underdogs, let’s assume you are placing a wager on Red Sox, with odds of +120. You'll need to wager $100 to win $120. If this bet wins, you get $120 in profit alongside your initial $100 bet.
Note that the examples apply to smaller bets too. For instance, you can easily wager $10 to win $12 in profit using the example above. With American odds, the bookmaker has much control over the point spread even without making many changes.
American Odds vs. Decimal Odds
Decimal odds appear as a whole number with a decimal point and are usually used by most European countries.
In contrast to American odds, decimal odds use $1 as its benchmark instead of $100. The higher your stake, the better your potential cash prize. One crucial difference you'll likely see between American and decimal odds is how they are displayed.
While American odds come with either a minus or addition symbol, decimal odds do not. Instead, they are written as decimals like 3.40 or 1.50, as indicated in the image below from the Unibet sportsbook.
Another significant difference is that American odds indicate how much you'll win for every $100 you wager, while decimal odds indicate how much you'll win for every $1 bet.
How do you Convert American Odds to Decimal?
Not every sportsbook will offer odds in the American way, and while some allow you to view odds in varying formats, others won’t. This makes it helpful to know how to convert it yourself. We’ll be sharing everything you need to help you do this here.
Steps for converting American odds to Decimal
Positive + and negative – odds are converted in different ways. For positive US probabilities, you'll have to divide the amount by 100 and add 1.
Hence:
Decimal odds = (American odds/100) + 1
Calculating for Negative Odds
If you are calculating for negative odds, it is slightly different. You also have two ways to calculate it. The first is to take out the negative sign and use the same formula for converting positive odds.
For instance, to convert -130 to decimal odds, it will be:
Decimal odds = (100/American odds) + 1
For the second method, you’ll divide the American odds by 100 and deduct 1 from the answer.
1 – (100/Odds) = decimal odds
However, manual conversions tend to take time and are prone to mistakes. Fortunately, there are tons of free calculators available online that you can use to convert odds within minutes. Simply search for an odds converter on google and use it to make the process faster.
How do you Convert American odds to fractional Odds?
Fractional odds are indicated in the form of fractions in the image below.
Converting American odds to fractional is similar to converting to decimal odds. Here’s how you go about it.
Converting Positive American odds
For positive odds (+), you'll divide it by 100 to get your result, then reduce the fraction to the lowest possible. In this case - American odds/100 = Fractional odds.
So, if we were to convert odds for +140 using this formula, it would be:
140/100 = 14/10 = 7/5.
Converting Negative American odds
For negative odds (+), you'll be dividing by – 100. This means -100/American odds = Fractional odds. And once you get the outcome, you reduce the result to the lowest fraction possible.
So, using this formula, let’s calculate for odds of -160. It would be:
-100/-160 = 0.63 = 6/10 = 3/5
Example of how American Odds Work
American odds work differently based on three scenarios, the totals (over/under), point spreads, and the Moneyline. Here is a look at each below:
Moneyline: The Moneyline bet simply offers the chance of choosing who wins, between the underdog and favorite. These types of bets don't come with any conditions or point spread. It is a simple question of which team will win. Here is a quick example of what moneyline looks like on a sportsbook.
A good range of -125 for the favorite and +105 for the underdog means the bookie believes the favorites have a fair winning chance on paper. Using the first upcoming match in the image above, if you wager $100 on the underdog, ATL Falcons at +140, you get paid out $140 if they win. In comparison, you will need to wager $190 on WAS Commanders at -190 to win $100. This is because it is the favorite team with a better chance of winning.
Moneylines are also pretty common in baseball too. For instance, check out the image below.
These odds show the likelihood of each team winning the National Leage as indicated by DraftsKing sportsbook. If you decide to wager $100 on the PIT Pirates, you win $8,000 since they have a lower possibility of winning.
Totals: the totals signify bets on how the game statistics would look like. You can bet on either low or high-scoring patterns with the totals or in the middle. Totals are also known as over/under bets. Before a game begins, the sportsbook will determine a number that will show the goal total or points of both teams. In this case, your objective will be to determine if the final scores of the competing teams will be higher or less than what has been indicated by the sportsbook.
Using the image above, suppose you want to wager on the Saints to go over at odds of -114, you’ll need to bet $114, for a chance to win $100. In this case, your bet only wins if the Packers win by 24 or more points since teh sportsbook has predicted 22.5. If you wager on the Eagles, they will need to lose by 24 or more points for your bet to win.
Spread: the spread is similar to the Moneyline bets. With a spread figure of -2, it means both teams match each other in theory. Values of -10 and around indicate a potential mismatch, and one side is favored to win. Spread also means each team is assigned a number they must meet before you win your bet.
Suppose you land a bet of -5 for the Steelers and +3 for the Browns. The Browns would have to win or lose with less than 3 points, and the Steelers win by a point value of 5 or more. You do not win or lose if the match ends in a draw.
How Payouts work for American Odds
The odds at the sportsbook at the time you place your wager determine your payout. Even though the odds tend to change, you are restricted to the odds at the period you placed your wager.
You can calculate your payout is by following these simple rules.
- For negative odds, the odds are equal to the amount you must wager to get $100. So, odds of -150 mean you wager $150 to win 100.
- In the case of positive odds, it indicates how much you will get if you win a $100 wager. So, for odds of +!50, it means you get $150 when you wager $100.
Understanding Line Movements
Between the time when odds are released to when the match starts, there will be fluctuations in the numbers. This is a result of new information that may be pouring in. It could be due to weather conditions, change in match conditions, or injuries update. In addition, the bookies also make adjustments in response to patterns from betting on the game.
When you notice such a change in the numbers, check for relevant news related to the game. Then look at the specifics of the game odds between different sportsbooks to find the comparison.
How to Calculate a bet in both American Odds and Decimal Odds
Getting the potential cash prize of a bet in both American and decimal odds is relatively easy. It is essential to understand that you have to consider the fact that they are based on $100 and $1, respectively.
American Odds FAQ
What are Vegas Odds?
American Vegas odds are common in sportsbooks. They usually come as whole numbers with either a minus or addition sign in front. Usually, the plus sign signifies an underdog team, and the minus is for the favorite.
If I bet $100, how much do I win?
This is dependent on the odds of the wager. For instance, if you bet $100 on odds of +180, you get $180 in profit. Do this on odds of +200, and you get $200 in profit and so on.
How do betting odds work
Betting odds show you what the sportsbook believes the probability of an outcome will be. You can use them to determine your potential payout after making wagers.
Further Reading:
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