Understanding Casinos: Odds
Odds in gambling generally refer to the chance you have to win or lose. Think of odds as a chance of an event happening. It can refer to your favorite team winning, getting a Royal Flush in seven card stud, or landing a ball on black at the roulette table.
However, there is a dual usage with the term. We can refer to odds as the chance that something will happen, but many times it will refer to the “odds on display” (or the payout) if you win. These aren’t the true odds but what someone (like the casino sports book) is willing to pay against a bet. So if your team has fifty to one odds given, you’ll generally win $50.00 on a $1.00 bet. The house edge comes from a percentage on your winnings that the casino takes.
Let’s go over the different type of odds. These are just different ways to show your payout if you win. The first are “Fractional odds”. A person with 5/1 odds makes $5 for every $1 bet. These odds can also work in reverse order, as well. 1/5 odds, for example, means you need to bet $5 to make a $1 profit. Due to their preference in the United Kingdom and Ireland, these fractional odds are known as “British or UK odds”. These odds also DO NOT assume payback of the original bet – you get that back, plus the odds payout.
Our European, Canadian, and Australian friends oftentimes use “Decimal odds”. These odds factor in your bet and the payout when quoted. So with decimal odds, 4/1 (four to one) would be quoted as simply “5” (because you’d get the four to one payout, plus your one stake). 1/4 (one to four) would be quoted as 1.25.
America prefers “Money line odds” (sometimes referred to as, “American odds”.) These odds are shown as units of money for payouts. So if you see a minus sign, you need to bet that amount to win $100.00. If you see a plus sign, you’ll win that amount for each hundred you bet. +$20.00 means that if you bet $100, you will win $120. -$50 means you bet $50, and will win $100. Obviously, favorites get the plus sign, while long shots get the minus sign.
For amounts less than $100.00, just divide your bet to get the fraction. So, $50 bet on a +$10.00 payout will win you $55.00 on a $50.00 bet.
Odds can be a little tricky, because they represent both sides (in your favor or against), so make certain you know your “four to one” from your “one to four”. But once you do, you’ll be in good shape to drop a few bucks on your favorite team (or playing your favorite game.)
Good luck out there, and may the odds favor you!
