American Odds: explained
American odds, also known as moneyline odds, are a way of expressing betting odds commonly used in the United States. They indicate the potential profit relative to a $100 bet and are displayed as either positive or negative numbers:
- Positive American Odds (e.g., +150): These odds show the amount of profit you would make on a $100 bet. For instance, if the odds are +150, a $100 bet would yield $150 in profit, plus your original $100 stake.
- Negative American Odds (e.g., -200): These odds indicate how much you need to bet to make a $100 profit. For example, with odds of -200, you would need to wager $200 to win $100 in profit.
American odds are helpful for quickly seeing who the favorite (negative odds) and underdog (positive odds) are in a given matchup.
Table of Contents
How Do You Read American Odds?
American odds come in two formats: positive (+) and negative (-).
- Positive Odds (e.g., +150): These indicate how much profit you’d make on a $100 bet. For instance, if the odds are +150, a $100 bet would return $150 in profit, plus your original $100 stake for a total payout of $250.
- Negative Odds (e.g., -200): These show how much you need to bet to win $100 in profit. So, with odds of -200, you’d need to bet $200 to make a $100 profit. Your total payout would then be $300 (the $200 stake plus the $100 profit).
Understand Amercian Odds in short
A -135 favorite means you must risk $135 to win $100 from the sportsbook. You either lose $135, win $100, or your wager is a push.
A +350 underdog means you risk only $100, but you win $350. You either lose $100, win $350, or your wager is a push.
How Do You Convert American Odds to Decimal?
To convert American odds to decimal, the formula differs based on whether the odds are positive or negative.
- For Positive Odds (+): Use the formula
Decimal Odds=1+(American Odds100)\text{Decimal Odds} = 1 + \left( \frac{\text{American Odds}}{100} \right)Decimal Odds=1+(100American Odds) For example, if American odds are +150:
1+(150100)=1+1.5=2.51 + \left( \frac{150}{100} \right) = 1 + 1.5 = 2.51+(100150)=1+1.5=2.5
- For Negative Odds (-): Use the formula
Decimal Odds=1+(100∣American Odds∣)\text{Decimal Odds} = 1 + \left( \frac{100}{|\text{American Odds}|} \right)Decimal Odds=1+(∣American Odds∣100) For example, if American odds are -200:
1+(100200)=1+0.5=1.51 + \left( \frac{100}{200} \right) = 1 + 0.5 = 1.51+(200100)=1+0.5=1.5
These decimal odds then reflect the total payout per unit staked, including the original bet amount.
Odds calculator
Betting Odds Calculator
5 interesting facts about American odds
Probability Range: American odds reflect implied probabilities that range from near 0% (for extreme underdogs with high positive odds) to close to 100% (for heavy favorites with large negative odds). This gives bettors a clear indication of perceived likelihood.
Betting Market Accuracy: Studies show that betting odds, including American odds, often accurately reflect real probabilities, particularly in highly liquid markets like professional sports, where odds closely match real-world outcomes over time.
Profit Margins in Negative Odds: In American odds, when odds are highly negative (e.g., -500 or lower), the implied probability exceeds 80%, reflecting a strong chance of winning but with lower returns. Statistically, heavy favorites have higher win rates, though the return on investment (ROI) is smaller.
Conversion Simplicity: Over 80% of online sportsbooks use odds conversion calculators, as they simplify understanding between American, decimal, and fractional odds, with American odds widely converted for global use due to their straightforward calculation.
Betting Distribution: In the U.S., around 70% of bets on sports events involve American odds, demonstrating their dominance in the market. This is due to the familiarity of American bettors with this format and its prevalence in major sports leagues.
Here are some examples to help illustrate American odds:
- Odds of +110: Bet $100 to receive a total payout of $210 (your $100 stake plus $110 in profit).
- Odds of -110: Bet $100 to get a total payout of $90.91 in profit, plus your original $100 stake, totaling $190.91.
- Odds of +150: Bet $100 and receive a total payout of $250 (your $100 stake plus $150 in profit).
- Odds of -150: Bet $100 to earn a $66.67 profit, for a total payout of $166.67.
- Odds of +300: Bet $100 to receive a total payout of $400 (your $100 stake plus $300 in profit).
- Odds of -300: Bet $100 to get a $33.33 profit, totaling a payout of $133.33.
Pros and cons
| Format | Pros | Cons |
|---|---|---|
| American Odds | Intuitive for U.S. bettors | Confusing for newcomers |
| Decimal Odds | Easy for quick calculations | Less familiar in the U.S. |
| Fractional Odds | Traditional for horse racing | Challenging for large odds |
I also created another great and informative article about Asian handicap, read it and share it online.
Common Mistakes and How to Avoid Them
Misinterpreting the Odds
Many beginners confuse positive and negative odds. Remember:
- Negative = Risk more to win less.
- Positive = Risk less to win more.
Ignoring Implied Probability
Failing to calculate implied probability can lead to overestimating a bet’s value. Always compare the implied probability with your assessment of the likelihood.
Overlooking Value Bets
A value bet occurs when the implied probability is lower than your perceived probability. Identifying these opportunities requires analysis and discipline.
Betting Without a Strategy
Placing bets based on emotions or biases rather than logic can result in losses. Develop a clear betting strategy that includes bankroll management and goal setting.
Popular countries
American odds are mainly used in the United States and are most prevalent in the following countries:
United States
The United States is the country where American odds are mainly used. Since the legalization of sports betting across different states after 2018, moneyline odds have become the standard in many betting platforms, especially for sports such as football, basketball, and baseball.
Canada
In Canada, those odds are becoming increasingly popular, especially since the legalization of single-event sports betting in 2021. Canadian sportsbooks often use those odds to cater to bettors who are accustomed to this format.
Australia
While Australia predominantly uses decimal odds, some online sportsbooks that cater to international markets include these odds. This is particularly true for platforms targeting Australian bettors interested in American sports.
Other Countries
Countries like Germany, Spain, and Italy use a mix of betting systems but may also feature moneyline odds on platforms that focus on American sports or cater to international users. In any case, these countries use fractional or decimal odds in their local markets.
FAQ
What are American Odds?
Type of betting odds used in the United States. They indicate potential profits or losses based on a $100 bet. Positive odds (e.g., +150) show potential profit on a $100 bet, while negative odds (e.g., -200) indicate how much you need to bet to win $100.
What are Decimal Odds?
Decimal odds, common in Europe, are straightforward and show the total return per unit bet. The number represents the total payout, including your original stake. For example, if the odds are 2.50, a $10 bet would return $25 ($10 x 2.50).
What are Fractional Odds?
Fractional odds, used in the UK and Ireland, represent profit relative to the stake. Shown as fractions (e.g., 5/1 or 2/3), the first number is the potential profit, and the second is the stake. For example, 5/1 odds mean a $1 bet would yield $5 in profit, while 2/3 means a $3 bet returns $2 in profit.
What is Implied Probability?
Implied probability is the likelihood of an outcome based on the odds. It’s calculated by converting the odds into a percentage. For example, if a team has odds of -200, the implied probability is about 66.67%, meaning there’s a 66.67% chance of that outcome.
What is the Bet Amount?
The bet amount is the amount of money you choose to wager on a particular bet. This could be any amount within the sportsbook’s limits and is the risked amount in hopes of making a profit based on the odds.
What is My Payout?
Your payout is the total amount you receive if your bet is successful. It includes both your initial stake and the profit earned from the odds. For example, with a $10 bet at 3.00 decimal odds, your payout would be $30 ($10 x 3.00).
