One of the most exciting things about sports betting is that you’re entitled to win a prize when you win your bets. So bettors wager an amount on a prediction based on the odds provided by bookmakers hoping to win a larger prize. Once their prediction is correct, the bookmakers offer bettors their well-deserved reward. And with most online sportsbooks like 22 Bet, the payout and withdrawal process is fast and seamless.
However, many bettors do not know how these rewards work and how payouts are calculated. Since the system automatically calculates and tells you your prize, they rarely bother about how it came about. Nevertheless, it would be exciting and beneficial to know these payouts work.
Majorly, payouts are calculated based on the type of odds used on the sportsbook and your wager. The sportsbook’s location relatively determines the type of odds used. There are three main types of betting odds- Fractional, Decimal and Moneyline odds. The odds are the same; however, they are presented differently, given the region and location of the sportsbook.
Fractional (British) odds
Fractional odds are most popularly used by British and Irish bookies, typically used for horse racing. They are also used in the United States for future odds. Fractional odds are represented using slash (/) and hyphen (-), e.g., 2/1, 12/5, 9/1, etc. So, if, for instance, the odds are 9/1, you win $9 for every $1 you wager plus the $1 you wagered. Thus, your total payout will be $10. So, if you stake $10 on 9/1 and win, your total payout will be $100, which is $90 profit + $10 wager. This means your profit is multiplied by 9 plus the multiplication of your wager by 1.
Decimal (European) odds
Decimal odds are commonly used in Australia, Canada, Continental Europe and New Zealand. As its name suggests, decimal odds are displayed in decimal form, e.g., 2.5, 1.3, 1.6, etc. This is because they are easier to understand and calculate than fractional odds. So, if the odds are 1.3 and your stake is $100, your total profit is the multiplication of your stake and the decimal odds. Thus, your total payout is 1.3 x 100, which is $130. Again, this is because the decimal odds represent your profit and stake; your stake has already been added to the odds. The ease of this calculation makes it the most straightforward. Also, it’s easy to see the favourites and underdogs by looking at the numbers.
Moneyline (American) odds
Moneyline odds are also called American odds, as they are most popularly used in the U.S. They are displayed with the signs (-) and (+), which depict who the underdogs and favourites are. The (+) character is usually next to the odds for underdogs, like +500, and the (-) sign accompanies the favourites’ odds, -500. These odds show that you need to wager $100 to win $500 for the underdogs to win. If they win, you get your initial stake of $100 back plus $500, which is your profit, totalling $600. However, if you wish to bet on the favourites with -500 odds and, thus, a higher probability of winning, you need to wager $500 to win $100. If you win your bet, you win $100 plus your initial stake, which is $500 resulting in a total payout of $600.
Hence, odds play a vital role in calculating your payouts and determining how to place bets more intelligibly. So, in most cases, bettors should know how payouts are calculated.