The Basics: The American Odds System - Betting Lines Explained
Before we talk about American odds, let’s first understand odds as a concept. No matter the format (fractional, decimal, American, etc.), it is important to grasp that these are simply representations of a percent chance that the sports book believes the event will happen (slightly skewed dependent on the sportsbooks hold percentage). Every odd can be represented as a percentage which is often a more intuitive concept for people to grasp. Understanding this is crucial in your sports betting lifetime, as it is the backbone of any knowledgeable bet that is placed.
Now, let’s talk about American odds specifically; how in the world do you read them? What may look confusing from the outside, is actually quite innate once you are exposed to it a few times. That will be my job today, to familiarize you with the most popular odds format used in the United States.
The first thing you have to look at is the sign. Is the number positive or negative? If the number is positive, if you were to place $100 on that particular bet, you would win the number shown. So, if you are making a +130 moneyline bet on the Clippers to beat the Lakers and you placed $100, if the Clippers won, you would make $130. If the number is negative, you have to place that dollar amount down in order to win $100. With the same example, say the Lakers were -150, if you placed $150 for them to win and they did, you would win $100.
Let it be known that in no way, shape, or form are you expected to place down $100 or more on every bet. Simply think about it as the ratio. So, if you make that Clippers bet and you place $10, you would win $13 if they won. If you make the Lakers bet, placing $15 and they win, you receive $10.
As mentioned before these odds are representations of a percent chance that the event will occur. Some bets carry different risk-and-reward characteristics. From the sports book’s perspective, the Lakers are a safer bet and are going to win more often than not against the Clippers. Naturally, they are indicating there should be less reward because there is less risk. The antithesis occurs with the Clippers bet. They are less likely to win, therefore there is higher risk, higher reward. Your job as the better is to determine which bet has value to try and make some cash!
American Odds to Percentage Conversion
There are plenty of online percentage calculators to determine what percent chance the sports book is giving you. If you want to calculate it by hand, these are the formulas:
Positive:%=100x+100 ×100
Negative:%=-x(-x+100) ×100
In my sports betting history, it has been crucial for me to understand the percentages associated with the odds because it allows me to more easily compare the sports books perception on bets and my own to find potential value. If I believe there to be a higher percent chance that event occurs, I will have found value in my eyes.
Let’s travel back once more to the land of Los Angeles for the Lakers vs. Clippers game. After doing research on the game, I believe it 65% likely that the Lakers win (therefore a 35% chance the Clippers win). Converting the odds, it is determined that the sports books are presenting the Lakers to have a 60% chance to win (from -150) and the Clippers to have a 43.5% chance to win (from +130) (if you notice, those two numbers don’t add to 100, this is showing a 3.5% hold). I believe there to be a higher chance the Lakers win than what the book is giving. Therefore I just found 5% of theoretical value.
Hopefully this introduced you to the American odds betting system. At the end of the day, remember, it is not the representation of the odds that matters, it is the percentages being the numbers that are crucial.
