25. 06. 2025
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Betting Guide
How Betting Odds Work: Fractional, Decimal, and American Explained
Whether you're new to sports betting or looking to sharpen your knowledge, understanding how betting odds work is essential. Odds represent the probability of an event happening and determine how much you can win from your bet. Different countries and bookmakers use different odds formats — fractional, decimal, and American. In this guide, Footen betting experts will break down each odds format, explain how they work, and show you how to calculate potential payouts.
What Are Betting Odds and Why They Matter
Betting odds are more than just numbers — they represent the implied probability of an outcome and the potential return on your wager. Essentially, odds tell you two things: how likely an event is to happen, and how much you’ll get paid if it does.
When bookmakers set odds, they combine statistical models, historical data, and market behavior, while also including their own margin to ensure profitability.
Fractional Odds (UK Style)
Fractional odds are widely used in the UK and Ireland, especially in traditional bookmakers and horse racing. They appear in the form of fractions like 5/1 or 1/4.
For example, odds of 5/1 mean you win $5 for every $1 staked, plus your stake back. Conversely, odds like 1/4 suggest you need to bet $4 just to win $1 in profit. This format directly shows the ratio between potential profit and stake.
Fractional odds can be a bit confusing for beginners but are second nature to seasoned UK bettors.
Decimal Odds (European Format)
Decimal odds are the most straightforward to understand, which is why they are the most common format globally. You’ll see them in countries like Australia, Canada, and across Europe, as well as in nearly all online sportsbooks.
A decimal number simply represents your total return, including your stake. For instance, odds of 3.00 mean that for every $1 you bet, you receive $3 back if you win — that’s $2 profit plus your original $1 stake.
Decimal odds make it extremely easy to calculate payouts quickly, which is why many bettors prefer them regardless of where they live.
American Odds (Moneyline Odds)
American odds might look confusing at first, with positive and negative numbers like +200 or -150, but they’re quite logical once understood.
- - A positive number (like +200) shows how much profit you’ll make from a $100 bet. So +200 means a $100 bet wins $200 profit, for a total return of $300.
- - A negative number (like -150) shows how much you must stake to win $100. For -150, you need to bet $150 to win $100 profit (total return $250).
This format is especially popular in the US, particularly for moneyline bets in sports like NFL, NBA, NHL, and MLB.
Understanding Implied Probability
Regardless of the format, odds are ultimately a reflection of probability. The higher the odds, the less likely the event is to occur — but the higher the payout if it does.
When you learn how to translate odds into implied probability, you can better assess whether a bet offers real value. This is one of the key skills that separates casual gamblers from serious bettors.
Which Odds Format Should You Use?
There’s no objectively better format; it depends on where you live and what you’re comfortable with. Fractional odds are favored in the UK, decimal odds dominate globally for their simplicity, and American odds suit bettors focused on US sports.
However, many modern betting platforms allow users to switch between formats in their account settings. Once you understand one format, it’s easy to convert to others.
Final Thoughts: Master the Odds to Master the Game
Grasping how betting odds work — whether fractional, decimal, or American — is a crucial step toward becoming a smarter, more informed bettor. It’s not just about calculating potential winnings, but also about understanding the true likelihood of an event.
At Footen, we’re committed to helping you improve your betting strategy with in-depth guides, expert predictions, and practical advice. Stay tuned for more insights that can help turn knowledge into winning bets.
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