Odds are the language of sports betting. They tell you how likely an outcome is according to the bookmaker, and they determine how much you'll win if your bet is successful. Mastering odds is the first step toward becoming a more informed and successful bettor.
Decimal Odds (Australian Standard)
Decimal odds are the standard format used by Australian bookmakers. They represent the total return per dollar wagered, including your original stake. To calculate your profit, subtract 1 from the decimal odds and multiply by your stake.
Decimal Odds Examples
- Odds of 1.50: $10 bet returns $15 ($5 profit)
- Odds of 2.00: $10 bet returns $20 ($10 profit)
- Odds of 3.50: $10 bet returns $35 ($25 profit)
- Odds of 10.00: $10 bet returns $100 ($90 profit)
Understanding Implied Probability
Every set of odds implies a probability. To convert decimal odds to implied probability, divide 1 by the decimal odds. Odds of 2.00 imply a 50% probability (1/2.00 = 0.50). When you believe the actual probability is higher than the implied probability, you've found a value bet.
The Bookmaker's Margin
Bookmakers build a margin into their odds to ensure profitability. This is why the implied probabilities of all outcomes in a market add up to more than 100%. Understanding this margin helps you identify which bookmakers offer the best value.