What do odds mean in terms of betting probability? This doesn't mean that you can't make money betting on sports (or anything for that matter) but knowing the odds and what you're up against is key. The implied percentage chances for any given set of outcomes will not add up to 100% exactly with the bookies, they build in their edge by setting prices that total more than that. The amount of edge built into an event or a specific market can vary wildly across different operators and sports, but let's use football as an example. Much like the 0 on a standard roulette wheel (or the 0 and 00 on an American one) this is their opportunity to make their advantage count.
How do bookmakers set the odds?īecause bookmakers are the ones setting the prices on their own websites or in shops, they have the luxury of building in a house edge when doing so. £3 of that would be the profit that the odds suggest, plus the initial £1 stake. This allows bookmakers to set the odds for any given event - including a house edge - but also means bettors can compare their opinion to those of the person setting the prices and see what their return would be if their bet is correct at the odds on offer.Īs an example, if you want to back a team to win a game at 3/1 for £1, the total returns for this selection would be £4 should they be come out on top in the match.
