Kansas City Chiefs (-250), Las Vegas Golden Knights (-110), Toronto Raptors (+125) – the chances are that you’ve come across these sorts of options in your sports betting journey. If you don’t know what these numbers mean, you’re not the only one.

This illustrates that the odds on the NFL are rarely set to generate 50/50 action because the bookmaker can exploit 'square' action by skewing odds against their traditional bias (i.e. The point made above about the Ohio State Buckeyes - if the bookmaker is aware that they are going to take a larger% of the bets, they can either adjust the. The range of betting events depends on the country in which the bookmaker is located. Odds compliers set the odds with a built in profit margin for the operator. The objective is to take a range of bets at different odds to guarantee a profit regardless of the outcome of the event. The profit margin is the cost of supplying such a service. But thinking like an oddsmaker and setting your own lines before the opening odds are released can help you greatly and allow you to find the most value on the betting board. To think like an oddsmaker, though, you need to first know how he sets his numbers. The initial line, also known as an “overnight line” or “opening line,” is an. Now that you have the basics of how odds work covered, we wanted to give you a few last bits of advice to really enjoy your new betting odds knowledge. If you do live betting, don’t forget that you can enjoy over/unders, Moneyline, Point Spreads, and props even with in-game betting. Find a bookmaker that updates their odds frequently,.

A large number of betting newbies have no idea what the figures are representing. If you want to learn, you’re at the right place. We’re now going to show you how Vegas odds work. We will also explain the process of making the odds. We’re even going to show you how to use this knowledge to your advantage.

What Are Vegas Odds?

Vegas odds a.k.a. American-style odds are the ones you will see in the land-based sportsbooks across Nevada. Caesars, Wynn, Golden Nugget – all these bookies are using the Vegas odds format.

The trouble is that they may seem strange to the inexperienced eye. However, everything becomes clear once you learn more about them. So, how do Vegas odds work?

These odds come in the form of three-digit numbers, which can either be positive or negative. If the number is negative, it means that the team is the favorite. If it’s a positive number, it’s the opposite. If the number on each potential outcome is -110 (or sometimes -105), it means that each team has an equal chance of winning.

The big question is how can you use these odds to figure out how much money you’re going to cash in if your bet wins? That’s the question we’re going to answer next.

How You Calculate Vegas Odds?

You calculate your potential win based on whether the odds come as a positive or a negative number. If the odds are positive, e.g., +150, it practically means that this is how much you can profit if you bet $100.

Let’s say you want to bet Justin Gaethje at Vegas odds of +150. If you put, $100, you’re going to make a net profit of $150 if he wins. But, what if you’d like to bet a different amount?

In that case, you need to use the following formula:

Vegas Odds/100 x Your Stake

So, let’s say you wish to put $70 on Gaethje, your potential net profit is calculated by dividing his odds by 100, then multiplying the number with 70.

Use your calculator and you will see that 150/100 x 70 equals 105. That is how much you will make if Gaethje wins. Note that $105 is your net profit, while you’ll also get your $70 stake back. So, your total win would be $175 on a $70 bet.

An important thing to remember is that the aforementioned formula only works if odds are displayed as positive numbers. If the number is negative (e.g., -150), you need to go with a different formula. In that case, this is what you got to use:

Your Stake/Vegas Odds x 100

This is because, with Vegas odds, the negative number represents the amount of money you need to bet in order to win $100. So, if the odds are -150, you will have to bet $150 to get a net profit of $100.

Is There a Simpler Alternative?

Vegas odds are traditionally used in land-based sportsbooks across Nevada. It’s been like that for decades, and when online sports betting became legal in other US states, most operators decided to embrace this format.

The same was the case with offshore sportsbooks that cater to American customers, with one important difference – BetOnline.ag, MyBookie.ag, SportsBetting.ag, and many other bookies let the players decide on the odds format.

So, if you find Vegas odds too complicated, you can always use decimal odds in offshore sportsbooks. How they work is that your stake is multiplied by the odds. The result you get is your gross profit (your net profit + your stake). For example, if the odds on Tampa Bay Buccaneers are 1.65 and you wish to bet $90, your potential win is $148.5.

Who Sets the Odds in Vegas?

When speaking about Vegas odds, there’s another question that pops out – who decides them? Some sportsbooks employ teams of oddsmakers to come up with the odds, while some hire independent companies to do the work for them.

In both cases, the goal is to set the odds in such a way that they attract equal action on both outcomes. This way, the sportsbook is going to make profits regardless of the outcome. As a result, the Vegas odds on the favorite are always negative numbers, while underdogs get positive numbers.

Oddsmakers take into account various factors to decide who’s the favorite/underdog. What we’re talking about are power rankings, game locations, the form of the teams, and so on. However, this doesn’t necessarily mean that Vegas odds equal the true probability.

Using the Odds Knowledge to Your Benefit

The thing about odds is that they change all the time. For example, there might be some big news coming from a team’s roster, such as an injury of a key player. You can be sure that the sportsbooks will adjust the odds in that case in order to protect themselves.

Still, the #1 reason why odds change lies in the behavior of the bettors. If the players suddenly start betting on one outcome, the sportsbook will have to react by adjusting the odds. They will move the odds on the outcome in question (e.g., from -128 to -175), while moving the odds against the opposite outcome (e.g., from +108 to +155).

This way, they are making sure they aren’t going to have to pay out too much money if the favorite wins. At the same time, they are encouraging bettors to put their money on the underdog with the odds more lucrative than earlier.

How can you use this knowledge to your benefit? You can go on an odds hunt. If you compare all the odds available, you will be able to find the best value for your bets. It may be at a Vegas-based sportsbook or it could be at an offshore website, you’ll find out only after you’ve compared them!

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Introduction

A bookmaker is a commercial enterprise that accepts bets on sporting events and novelty markets such as Politics and TV Specials at agreed odds. The range of betting events depends on the country in which the bookmaker is located. Odds compliers set the odds with a built in profit margin for the operator. The objective is to take a range of bets at different odds to guarantee a profit regardless of the outcome of the event. The profit margin is the cost of supplying such a service.

Bookmakers aim to take bets across the range of outcomes that reflect the odds. A betting market is fluid in that the odds makers adjust the odds in line with the weight of money on each option. Bookmakers spread the risk by laying off bets when the liability is beyond the accepted level of exposure. They don’t look to make money from the bets but on the balance of stakes and payout. Bookmaking is legal in regulated countries like the United Kingdom.

Types Of Bookmaker

The bookmaking landscape changed from the end of the last century. In the UK, bookmaking activities were traditionally conducted over the telephone, at racecourses or with cash in licensed betting offices. The internet has transformed the bookmaking industry but the customer, or bettor, can choose from a number of ways to place a bet. There are now three types of bookmaker and most of the business takes place online:

Fixed Odds

A fixed odds bookmaker issues a range of prices (the odds) in fractions to create a betting market. For example, the ‘bookie’ offers odds on the three outcomes of a football match, most commonly after 90 minutes. The three options are Home Win, Draw and Away Win. The odds have a built in profit margin or house edge. There is a simple calculation to determine the bookmaker’s probability from each option:

+100/(A + B/B)%

So, for odds of 2/1 the calculation is +100/(2+1/1) = 33.00%

Here is a typical match result market for a football match:

Home Team 11/10 +100/(11+10/10 47.62%

Draw: 9/4 +100/(9+4/4) 30.77%

Away Team 5/2 +100/(5+2/2) 28.57%

TOTAL: 106.96%

This book is said to be over round because the components total more than 100%. The bookmaker has set the odds with a theoretical profit margin of 6.96%. The art of bookmaking is to take bets on each option that reflect the probability and generate the profit.

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Spread

The growth of spread betting coincided with mass use of the world wide web on the internet. Spread betting companies grew from traders betting on currencies and financials in the City of London. The bookmaker issues a spread and the bettor or trader bets on the outcome being higher or lower than the spread. Spreads are expressed in two numbers and traders buy at the higher number and sell buy at the lower number.

For example, the spread on the number of goals in a football match could be 3.1-3.3. A bettor who thinks there will be more than 3.3 goals, buys at 3.3 while a bettor who thinks there will be less than 3.1, sells at 3.1. The spread betting bookmaker makes money from the difference in the stake and payout. Markets fluctuate based on the balance between buy and sell stakes.

Exchange

Exchange betting first appeared in the betting industry at the start of the century. Betfair was one of the first operators and that bookmaker now dominates the industry. Betting exchanges provide the infrastructure for peer-to-peer betting. They bring together backers who want to bet on something to happen and layers who want to bet on something not to happen. Bets are matched at a mutually beneficial price, partially matched or not matched at all. Exchange odds are expressed in decimals.

Exchange bookmakers issue a back price and lay price for all outcomes in an event. The back price is always lower than the lay price. Here is a typical market for the match winner after 90 minutes in football:

Home Team Back Price 2.26 Lay Price 2.32

Draw: Back Price 3.35 Lay Price 3.40

Away Team Back Price 3.65 Lay Price 3.8

Exchange bookmakers don’t make money from the outcome of bets but by charging a commission on winning bets. The business model guarantees a profit regardless of the outcome.

How Do Betting Companies Come Up With Odds

Types Of Bet

There are three types of bet across the range of bookmakers. The way each type of bookmaker makes money is different but all the betting markets fall in the following categories:

Pre-Match

How To Understand Betting Odds

Bookmakers publish betting for a sporting event a few days before the event takes place. The odds can fluctuate based on team teams and injuries. Developments have an impact on the weight of money for each outcome and bookmakers change the odds accordingly.

In-Play

The development of the internet has led to a growth in in-play betting. Trading takes place during the action and the odds fluctuate in line with the progress of play and the score. In-play betting is suspended after a significant event such as a goal in a football match.

Ante-Post

Bettors can place wagers on the outright winner of future sporting events in ante-post betting. For example, bookmakers introduce ante-post betting on the major championship races at the Cheltenham Festival months in advance of race day. The odds fluctuate in line with betting activity.

Betting Sports

The core betting sport in UK bookmakers is horse racing. Internet betting saw the growth of more sports-orientated bookmakers. Football is by far the most popular online betting sport and most bets are placed on matches in the English Premier League. Tennis is the second biggest sport for online betting. More tennis bets are placed on in-play markets than before matches begin. UK-facing bookmakers feature a wide range of cricket, rugby and golf markets. Operators who serve the mainland Europe market focus on sports such as handball, volleyball and basketball. The popularity of sports for betting is consistent across the three types of operation. Bookmakers make money in various ways but the markets and sports are the same.

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