Sports betting is to bet money on a sports event. There are many types of bets, the most simple are to bet on the victory of a particular team. Each bet has an odd that allows to know in advance, depending on the bet, the amount earned if the event occurs.
In decimal notation, if we bet €10 on Team A with an odd of 1.6, for example:
- If A wins, the amount recovered is €16, an increase of + 60%;
- If A does not win, the bet is lost, or 10 €.
The bets are normally managed by a a bookmakers that are organizations authorized to offer players to bet. Sports betting was banned in some countries.
The odds of a bet lets you know what is the gain if you win. It is calculated and proposed by bookmakers according to their estimated chances of victory or draw between two teams. Although the odds and win is the same, the odds of the bet can be expressed in three different notations: European, British or American.
The European odd is used as the name suggests in Europe, as the default on sports betting sites. This is a decimal number, which indicates the potential gain following the placing.
Gain = Odd × Bet
For example, for a tennis match between two players A and B, suppose a bookmaker gives a score of 3 for the win of Player A and 1.5 for the opposite event, the victory of B. If you bet 10 euros on the victory of A and that it occurs, you receive a “gain” of 10 * 3 = 30 euros. Considering your bet, you have therefore won 30-10 = 20 euros.
Gain = Bet × (Odd + 1)
It allows you to quickly determine the capital gain .
An odd of -X means that X must wager €X to win €100 (added value), while an odd of X means you have to bet €100 to win €X.
Example of odds
Below is an example of odds for two different teams with gains and expected capital gains in case of victory.
- Team A
- Team B
- European odd
- British odd
- American odd
- € 100
- € 100
- € 150
- € 400
- Capital gain
- € 50
- € 300
How to know what proportion of the bet is redistributed?
If we consider P as the proportion of redistributed money by the bookmaker, we find:
P = 1 / (Σ (1 / Ci))
where Ci are the European odds of the various teams involved.
More this amount is close to 1, more we earn average money by betting.