The so-called ‘odds’ in the world of online betting are numbers that indicate something very important. The odds tell us in fact what is the probability of the occurrence of a certain event and above all what is the sum that will be paid to the bettor in the event of a positive outcome of the bet.
The odds are practically ‘applied’ to the stake to calculate the eventual winnings (or profit). The problem is that there are various ways around the world to indicate the odds in betting. Odds with the same value may offer the exact same payout but may be represented differently.
The most famous types of odds are probably three in our country: there is the Italian (or European), the English (or British in general) and the American one .
But there are also quotas of Asian origin such as those of Malaysian, Hong Kong and Indonesian ones. Let’s see what the differences are between all these odds.
Decimal or European odds
The classic ‘ comma numbers ‘ are used mainly in Europe (including Italy) and are therefore also called European odds or Italian odds . The odds in this format, multiplied by the stake, represent the total amount paid by the bookmaker. As we know, the bettor pays the bet upfront and then gets paid in case of a win. The European quotas tell us how much the payment amount will be .
Let’s see an example. A stake of 100 Euros at 1.30 will result in a payout of 130 Euros if successful. In fact, 100 x 1.30 is 130. To calculate the profit, the amount of the stake must be subtracted from the payment. 130 – 100 = 30 euros.
Fractional or English odds
Fractions in odds are mostly used in the UK and Ireland, which are those islands where betting has a great tradition. These quotas are in fact also referred to as English or British . Multiplied by the stake, they represent the profit and no longer the overall win.
We also make an example here. A bet of 100 Euros at 2/5 will result in a profit of 40 pounds if successful.
100 x 2/5 = 40. To calculate the payout, you need to add the stake amount to the profit.
100 x (1 + 2/5) = 140 pounds (or other currency).
Fractional odds have a small problem when trying to convert them to other formats: the fractions used are standardized . A bet of 2/7 expressed in decimal format is equal to 1.2857 but a bet of € 1,000 at 2/7 will often not result in a win of € 285.7. As a result of the rounding, the amount actually paid could be equal to 280 or 285 Euros.
American odds
The American odds, unlike those examined so far, can be positive or negative numbers . The interpretation of the odds in this format therefore varies according to the sign in front of the number.
Example of Winning Less Than Bet – When a certain event has more than 50% probability of occurring, the eventual winnings are less than the stake. This happens when the decimal odds are lower than 2.00 and in fractional ones to 1/1 (usually we speak of ‘evens’).
In American odds, the odds value indicates how much the stake must be to win 100 units. The minus sign has no value in applying the formula. A bet of 100 Euros at -250 will result in a profit of 40 Euros if successful: 100 x 100/250 = 100 x 0.40 = 40. Here is the formula to calculate the payout: 100 x (1 + 100/250) = 100 x (1 + 0.40) = $ 140.
Example of winning greater than or equal to the stake – In this case it is very simple, the odds indicate the win for every 100 units wagered. To distinguish it from the previous case, it is preceded by the ‘plus’ sign. A bet of 100 Euros at +275 will result in, if successful, a payout of 375 dollars: 100 x (1 + 275/100) = 100 x (1 + 2.75) = 375 dollars (or other currency). To calculate the profit: 100 x 275/100 = 100 x 2.75 = $ 275.
Asian odds
Let’s start with the Malaysian odds which include two cases, with some differences compared to the American odds. Let’s see the case of winning less than the stake. The sign is the + which is often omitted. Example: a bet of 1,000 at +0.40 will result in a possible profit of 400: 1,000 x 0.40 = 400.
We can also calculate: 1.000 x (1 + 0.40) = 1.000 x 1.40 = 1.400. Let’s move on to the case of winning greater than or equal to the stake. In this case the odds indicate the stake required to win a unit. The sign in front of the dimension is negative and must be ignored again in the calculation. Example: A bet of 1,000 at -0.36 will result in a payout of 3.750 if successful.
In detail: 1.000 x (1 + 1 / 0.36) = 1.000 x (1 + 2.77) = 3.777. To calculate the profit: 1,000 x (1 / 0.36) = 1,000 x 2.77 = 2.777. The case evens or 2.00 in the Malaysian odds is expressed as zero. Watch out for rounding again. In the Malaysian odds only two decimal places are used.
The Indonesian shares are equal to the US and only being divided by 100.
And we close our roundup with the shares of Hong Kong , a simple format that was also used in Italy before the advent of the regulated market in 1998.
The format works a bit like the fractional one: the odds simply indicate the net winnings if any. Example: a bet of 100 to 0.40 will result in a profit of 400 in the event of a win since 1.000 x 0.40 = 400. If the odds are 2.75 the calculation becomes 1.000 x 2.75 = 2.750.
To calculate the payout, you need to add the stake amount to the profit: 1,000 x (1 + 0.40) = 1,400 or 1,000 x (1 + 2.75) = 3,750. The conversion between decimal format and Hong Kong format presents no problems with rounding.
