Fractional odds explained

There are multiple ways of presenting betting odds throughout the sporting world. American sports fans are used to seeing straight-forward odds or point spreads, while many in Europe and Great Britain employ fractional odds.

Fractional odds are easy to employ once they are seen on a fairly regular basis.

They are used more frequently used in British futbol than in American sports, and Americans who have taken a liking to European soccer will see these odds more frequently.

American and British/European Odds Formats

American odds of 5/1 odds would mean that you win $5 for every $1 you wager and you get your original bet back. The 5/1 demonstrates the profit you will receive compared to every dollar you wager. If you wager $20 at odds of 5/1, you will earn a profit of $100 and get your $20 bet back, for a full return of $120.

Decimal odds are popular in Great Britain, Australia and some other countries. The decimal employed represents the amount the successful bettor wins for each dollar wagered. The decimal number represents the exact payout, and that includes the initial wager as well as the profits from a winning bets. Unlike the fractional odds, the bettor does not have to remember to add in the initial amount wagered since the decimal includes that part of the payoff.

American sports also are represented by positive or negative numbers. For example, the Boston Celtics may be listed as +450 to win the NBA title. That means a player will win $450 on a $100 bet if the Celtics win the NBA title. The New York Knicks might be listed at +1,000 while the San Antonio Spurs might be listed at +3,500. In these two cases, a bettor who put $100 on the Knicks would earn a profit of $1,000, while the longshot Spurs would return $3,500 if they were to shock the world and win the title.

Major League Baseball is often represented by positive and negative odds numbers. If the New York Yankees are hosting the Kansas City Royals with pitcher Nestor Cortes on the mound for the Yankees, the bettor will see they are listed as -150 favorites while the Royals are +130 underdogs.

The bettor backing the Yankees must risk $150 to earn a profit of $100, while the gambler who puts his money on the Royals risks $100 to win $130. The winning bettor always gets his original wager back in addition to the profit.

Calculating Winnings With Fractional Odds

When fractional odds are employed, it’s important to remember that the original wager has to be added in to get the full value of the bet.

Fractional odds are almost always employed when wagering on North American horse racing. The odds listed on the total board are constantly listing the shifting odds on the horses in a particular race. The favorite in the race is listed at 5-2, the second choice at 4-1 and the third choice is 6-1. The longest shot on the board is listed at 30-1.

A $20 bet on the favorite will return $70 to the bettor. That includes the profit of $50 plus the original $20 wager. If the second choice in the race win, the $20 bet will return $100 – based on an $80 profit added to the original $20 wager. The third choice will return $140 based on a $20 wage. If the longshot wins a $20 bet, the return will be a huge $620. That includes a $600 profit added to the original $20 wager.

Converting Fractional Odds To American Odds

When fractional odds are used and the bettor wants to convert them to American odds, it’s a relatively easy mathematical challenge. 

Since American odds and fractional odds are both used, the bettor needs to be clear on how to convert fractional odds to the positive and negative numbers described in the previous paragraph.

If the Houston Astros are listed at odds of 6/1 to repeat as World Series champions, that would convert to +600 in American odds. In each case, the bettor would risk $100 to win $600. The winning bettor would receive a return of $700 whether the bet was made with fractional odds or American odds. 

Converting American Odds To Fractional Odds

A look at the odds board for the NFL shows the Kansas City Chiefs are listed +400 to win the Super Bowl in February. If these odds were converted to fractions, the Chiefs would be listed 4/1. In each case, the bettor would win a profit of $400 for each $100 wagered. 

A $50 wager on the Chiefs would return $250 in each case. That’s a profit of $200 plus the original $50 bet.

Converting Fractional Odds To Decimal Odds

There is a slight difference when converting fractional odds to decimal odds, because the latter includes the return of the original wager, while that amount must be added to the fractional odds.

If the fractional odds are listed at 5/1, that means a winning wager of $100 will return $600. This has been explained as a profit of $500 plus the original $100 wager.

The same bet listed in decimal format will read 6.00. The same $600 will be returned to the bettor, and it will include the $100 wager and the $500 profit.

The difference between the two is merely the format of the listing.

Converting Fractional Odds To Implied Probability

Implied probability is a percentage that illustrates the likelihood of an event occurring based on the odds. When a team is a significant favorite, it correlates to having a strong probability of taking place.

When a team is a longshot in a particular event, it has a lower probability of actually taking place.

Wagers based on high probability don't necessarily have a better chance of winning. A favored team in the NFL may have that status based on a winning history or an influx of talented players. However, injuries can impact that team's ability to play consistent and winning football. Other factors that can impact a team negatively include a negative attitude in the lockerroom, poor individual performance and improved play by the opponent.

So, don’t make a wager simply because an event has a higher probability. All factors must be considered before the wager based on probability is made.

Understanding how to convert betting odds into implied probabilities is fundamental for betting. It helps the gambler assess potential value in a given event. If the implied probability represents a higher number than the assessment of the event, it has a high value and is worth considering as a betting option.

Here's a look at an example involving golfers Viktor Hovland and Matt Kuchar:

Strategies to Help Maximize Income

There are many ways a sports bettor can have an improved chance at winning. While it is a major challenge to win over the long haul, the bettor needs to be consistent in his or her approach to have the best opportunity to be successful.

In addition to pointspread betting, bettors have a chance to wager against the money line. This is prevalent and can be quite successful in college football if the bettor believes that an underdog has an excellent chance to win a game.

For example, Northwestern may be a 21-point underdog to Wisconsin. If the bettor actually believes that the underdog Wildcats will actually win the game, the bettor can bet Northwestern at odds of +400. The bettor will risk $100 to earn a $400 profit for a return of $500.

Understand the key numbers on the pointspread. Those include 3, 4, 7, and 10. Shifting prices in the markets represent changes in implied probabilities. A shift in the pointspread from minus-3 to minus-3.5 must be considered before making a bet on a favorite. The same holds for a move from 4 to 4.5, 7 to 7.5 and 10 to 10.5. If you believe the favorite is still a strong option, that's fine, but remember these pointspread changes can have a major impact on the outcome of the wager.

Sharp sports bettors can often make a profit by fading the public. This means going against the bets made by the majority of those making wagers.

Since sportsbooks know how the public reacts when betting line are announced, they adjust their numbers to take advantage. This gives smart bettors – known as sharps – an opportunity to bet on the least popular side because it represents the best value.

Avoiding parlay bets is another strategy that can help the sports bettor come out ahead. Parlays offer the bettor bigger payouts –14-5 for a two-teamer, 6-1 for a three-teamer, 11-1 for a four-teamer – but all of the legs of the bet must win for the wager to be successful. Winning two legs of a three-team parlay is a losing bet.

Serious gamblers know it’s hard enough to win a single bet, so those wagering should not be lured in with risky parlay bets.

Fractional Odds FAQ

What kind of advice is best for a new sports bettor?

Turning a profit is very challenging and should not be assumed. The key to being successful is putting in the study and hours needed to gain full understanding of the factors that will decide the game. Doing "homework" gives the bettor the best chance to be successful.

How do pointspreads work?

Bookmakers set a spread with the hopes of getting equal action on both sides of a game. For example, the Packers are a -7 point favorite against the Lions. The -7 points is the spread. Betting on the Packers means they need to win by more than 7 points to win the bet. If they win by 7 points exactly, the bet is a push or tie. if the Packers win by 6 or less, or lose, the bet is lost.

What is a bankroll in sports betting?

A bankroll is the amount of money set aside for sports betting. That amount can be $100, $500, $1,000, $10,000 or more, depending on what the bettor can afford. The important part is not to risk more once that bankroll is gone. Enjoying sports betting is one thing, risking your family's security by betting more than you can afford is disastrous. Discipline is needed when determining a bankroll.