HOW BETTING ODDS WORK – WHO SET THE BETTING ODDS? HOW ARE BETTING ODDS DETERMINED?
As an entrant in the gambling industry, the jargon can seem overwhelming at first. However, as time goes
by, you get to realize that the terms are pretty much easy to understand.
The first thing you need to master is the meaning of odds. You will see people outlining their wagers based on the odds and will wonder what this entails. Well, odds indicate the likelihood of an event.
For example, when team A is up against team B, what are the odds that it will win? What are the odds that the match will end in a draw? Figures come into play to show the likelihood of such events, and these are the odds. We will get into these a little more in the article.
These figures are not only helpful in showing the likelihood of events, but they also show what you could win. Suppose you have ten pounds, and the odds are at 2. If you win, you end up with twenty pounds.
It sounds quite easy; does it not? Well, at first, you will find this math overwhelming. But with the information gathered in this article, you will understand it with ease. Let’s get started:
Probability is quite significant when it comes to the setting of odds. The best way to explain
be regarding dice. Suppose you and your friends are playing a game of monopoly. When they first roll,
there are six likely outcomes.
As such, there is a sixth chance that you could get the right number. However, there is no way of telling what would happen. Mathematically, you would work with 16.67%. That means that if you got the figure right, you would multiply the amount wagered by this percentage. Note that not all bookies will work with percentages.
Take the United Kingdom as an example. Here, fractions are in wide use, while others use decimals.
At this point, you can now understand a bit about odds, and if you do not fully understand them you can just consider looking for online betting tips! You know that it relies heavily on probability. For example, if two horses are in a race, what is the likely outcome? Naturally, people will gravitate towards the more evident winner.
It could be that the horse is stronger while the other has had some health issues. The belief of a win could also depend on the jockey riding the horse. In such an instance, you would get lower odds for this likely winner. However, you could choose to bet on the likely loser with better odds.
In this way, if your hunch is right, you would walk away with a lot of money. However, note that the odds are such that you make more out of unlikely outcomes.
Where two teams are up against each other, and one is stronger, the odds could be something like 2, 2.6, and 3.4. That would mean that the home team had odds of 2, an odd of 2.6 on a draw and 3.4 on an away win.
These figures indicate that the away team is more likely to lose. However, if it were to win, the bettors on it would get an X amount multiplied by the 3.4. Is any of this making sense to you? Let me break it down even further.
Odds are a show of the probability that an event will take place. How probable is it that the home team will end up the winner? If the chances are one in four, the odds would be at 0.80. That means that this team is likely to win.
Decimals are easy to work with when determining how big the payout will be. Suppose a team has odds of 1.25. You can multiply this figure by the amount wagered to tell how much you can make.
Who sets them?
With this math, you would wonder who sets the odds. Well, it is straightforward – it all comes down to
the bookmakers. They set the figures having taken past and present statistics in mind. They account for
injuries, new acquisitions, weather patterns, and everything under the sun.
In doing this, they come up with a strategy through which they can make money while offering some payouts—the key to winning lies in undertaking research and deciding on the likely outcome.