In simple terms, betting odds are the probability of a certain outcome occurring in a betting match. For example, a horse race has 10 lb fees and odds of 3 to 1. This means that for every £10 you wager, you’ll win £30 back (30% return on investment).
The higher the odds, the more you’ll make if the predicted event happens. But if it doesn’t, you’ll lose what you staked. For instance, if the horse you backed wins but is scratched before the race, your loss will be £10. (If it is a push bet, then you’ll also lose the £10 you put on the horse that is pulled before the race.)
In most cases, you’ll find that betting odds are listed with a plus or minus sign in front of them. For instance, +400 is often used to indicate 400 per cent odds of winning a bet, whereas -300 is used to indicate 300 per cent odds of losing a bet. (In some cases, both sides of a bet may be represented, for example, -200 and +200 for a total of 400 per cent odds.)
With plus and minus betting odds, the betting market is split into two groups: winning bettors, and losers. (“Bettors” is short for “betting party.”) The winners share in the probability of the underlying event (the horse race in our example) and reap the benefits of multiple wins and reductions in odds, while the losers have the losses absorbed by the betting house. (In some cases, these odds may be so unlikely to come up that the betting house will not accept them entirely, and instead may offer alternative odds such as \u203C1/2 or 3/1 or 11/4 or 11/2 or 12/1 or 13/1 or 24/1 or 26/1 or 50/1.)
With straight betting (paying off on the underlying event without regard to the odds), you’re generally restricted to selecting a single winner from among the participants in the betting matches. (This is often done for predictability and reducing the risk of loss.)
The Mathematics Of Betting
When you place a bet on an event with plus or minus odds, your winnings or losses are algebraically determined by the formula in the following ways.
- If the odds are plus odds, your winnings will be multiplied by (1 + the odds);
- If the odds are minus odds, your losses will be multiplied by (1 – the odds).
- For example, if you place a bet on a horse race with +400 odds, you’ll win a multiplier of (1 + 400) or 500 times your bet. (This is known as a win bet.)
- If you place a bet on a horse race with -400 odds, you’ll lose a multiplier of (1 – 400) or 600 times your bet. (This is known as a loss bet.)
The binary number system is often used when speaking of betting odds. In this system, 0 represents no bet at all, and 1 represents a bet on the specified event. So, for example, when you see a number such as 11010 in binary, it means that you placed a bet on the event that the numbers 1 and 0 will occur in the next binary number you see. (In other words, you placed a bet that the next bit of binary data will be a 1 or 0.)
For example, if you see 011 in binary, this means that you placed a bet on the event that the next bit of binary data will be a 1. Or, if you see 000, this means that you placed a bet that the next bit of binary data will be a 0.
Bookmaker Protection
Many people betting online want to know more about the security of their bookmaker or sports book when they place a bet. If you bet at a licensed bookmaker, you’ll often see the phrase “plus or minus 30 days” after the bookmaker name, which means that the bookmaker is offering you 30 days of protection from losing money if the underlying event falls outside of the betting market (for example, in the case of a horse race, 30 days would begin on the last day of the previous month).
For instance, if you bet on a horse race that was held last month and won, you’ll win the 30 days of protection on your bet today. (The 30-day period ends at the start of the next month.)
If you bet on a horse race that was held this month and won, you’ll lose the 30 days of protection on your bet today. (It’s like starting a month later than the last month and betting on the same horse race.)
Some people betting online are more secure in their winnings if they back a team rather than a single horse for the entire race. If you bet on a sports match that has two teams, your team’s wins and losses will be added together to give you an overall score. (In the case of a team race, this is known as a total winnings or losses bet.)