How Are Payout Odds Calculated?
How payout odds are calculated ultimately depends what you are betting on. Calculating payout odds in sports betting differs to how odds are calculated in casino games. So, it’s useful to establish what you are calculating first.
Nevertheless, in this guide, we’ll talk you through calculating payout odds in both casino games and sports betting.
Knowing how odds are calculated can be the difference between you winning or losing. It separates the beginners from the seasoned players, and puts you in the best position to win the game.
Calculating Payout Odds in Sports Betting
Sports betting websites make it really easy for you to calculate the payout odds on a bet with odds calculators. With an odds calculator, you insert the information required by the digital calculator and it will calculate the payout on a bet for you.
Usually, the only information you have to insert is the actual odds on the bet. Odds calculators usually accept various formats, such as American/moneyline, decimal, or fractional odds. Here is an example of each type:
- American: +1000/-1000
- Decimal: 1.25
- Fractional: ¼
Sportsbooks state the odds for a bet on a specific game. So, all you have to do is find it and insert in into the specified space on the calculator. The next step will be to insert the amount of money you would like to bet and let the tool do the rest. The information generated will include the probable payout for that bet.
Calculating Payout Odds for Casino Games
Calculating payout odds for casino games is more complex because there are so many casino games and each have their own odds and payouts. The betting odds in a casino game tell you how likely it is for your bet to occur and how much you stand to win if it does. That “likelihood” is the probability.
The probability can be written in fractional form as you will often see in sports betting. Or, it can be written as a percentage which is how you will often see it with casino games. Fractional odds can easily be converted into percentages. See our example below.
If the fractional odds for a particular game is 10:1, then you can calculate the probability using this formula: 1/(10+1) = 0.09. The 0.09 is rounded off which means there is a 9% chance that the bet you have chosen will occur.
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