Decimal Odds

• Definitions of Decimal Odds
• Some Common Decimal Odds Examples
• Conversion of Decimal Odds to American and Fractional Odds
• Betting Calculator for Decimal Odds

One of the three ways of specifying betting odds is the Decimal odds, also called European odds. The other two are American odds and Fractional odds. Since they correctly translate the betting situation to mathematical description, and because of their simplicity, Decimal odds are the standard odds specification method. Decimal odds are identified by the fact that they are always greater than 1, and no signs precede them.

For betting selection on an event between two contestants, such as a sports match between two teams, either the two contestants are of equal strength, or one of them is more favored to win the match than the other. The first case is known as Evens betting and each one is assigned similar odds. If one of the teams is a favorite and the other the underdog, then the odds assigned to the favorite is called Odds-on, and that to the underdog Odds-against.

Definitions of Decimal Odds

The value of decimal odds tells the relation between the stakes, the winnings, and the pay-outs of a bet. Winnings are what the bettor wins with a certain stake (wager), while pay-outs are the total amount paid to the winner. Obviously, pay-outs are winnings plus stakes.

• If the value of decimal odds is 2.0, it means that the winnings are exactly equal to the stakes, that is, the bettor doubles his/her wager.
• If the value is between 1 and 2 (that is, 1 point something, like 1.75), then it means that the winnings are less than the stake. This is normally the case of betting on the favorite team (odds-on).
• If the value is greater than 2, then it means that you win more money than what you wagered. This is normally the case of betting on the underdog team (odds-against).

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Some Common Decimal Odds Examples

Decimal Odds for Evens Betting

The simplest case of betting is when the betting is between friends (fair bet) and when the two teams, say, team A and team B, are competitive. In this case since no sportsbook commission is involved you bet $1 to win $1. And the odds are given as,

However, if the bets are placed through a sportsbook, although both teams are equally strong, because of the commission involved, the winnings will be less than the stakes for both teams. Usually, sportsbooks present these odds as 1.91 or 1.90, thus,

If you bet $30 on either team, using the formula given above, the pay-out would be $30*1.91 = $57.30. Or, you win $30*(1.91 -1) = $27.30

Decimal Odds for Moneyline Betting

If there is a disparity of strength between the two teams, one of them will certainly be favored over the other. In the US, Moneyline is betting without point spreads. There is nothing special about it; it is just a win or lose betting. For example, odds of a match between teams C and D may be specified as,

Obviously, team C is the favorite and team D the underdog.

If you bet $30 on team C, using the formula given above, the pay-out would be $30*1.26 = $37.80. Or, you win $30*(1.26 -1) = $7.80.
If you bet $30 on team D, using our formula, the pay-out would be $30*3.80 = $114.00. Or, you win $30*(3.80 -1) = $84.00.

Decimal Odds for Point-spread Betting

Point-spread is a way of equalizing the odds of two non-equal teams by introducing a handicap. As demonstrated in the above example, there will be very little to be gained by betting on the favorite team C, and a lot by betting on the underdog. Bettors will usually stay away from such bets since it is a risky bet in either case, plus it will be a lot of loss for the sportsbook if team D wins. To overcome this, a handicap of, say 5 points, will be introduced so that both odds would be equal as in the case of evens. Such odds may be specified as,

In this case, if you bet on team C, you'll win the bet if team C wins or even if it loses by less than 5 points. If you bet on team D, you'll win the bet if team D wins by more than 5 points; if team D wins by by 4 points, yes, you have correctly predicted the winner, but it hasn't "covered the spread" and you lose. If team D wins by exactly 5 points, it will be a push, and the wager will will be returned to the bettors.

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Conversion of Decimal Odds to American and Fractional Odds

The easiest way to convert odds is to use an odds conversion table. However, since such tables may not be always available, the bettor has to memorize the following steps of conversion from Decimal odds to American and Fractional odds.

To convert from Decimal Odds to American Odds

There are two cases here: one, if the decimal odds are between 1 and 2, and two, if the odds are greater than 2.

• If the odds are between 1 and 2, subtract 1 from the given decimal odds and divide 100 by the result, then place "-" before it. For example, to convert the decimal odds 1.91 to American, first 1.91 - 1 = 0.91, then 100/0.91 = 110. So, it will be -110.
• If the decimal odds are greater than 2, first subtract 1 from the given decimal odds and multiply by 100, then add "+" before it. For example, to convert the decimal odd 3.80 to American, first 3.80 - 1 = 2.80, then 2.80*100 = 280, so it is +280.

To convert from Decimal Odds to Fractional Odds

Subtract 1 from the given decimal odd and form a fraction. Then simplify if you can. For example, to convert the decimal odd 3.80 to Fractinal, first 3.80-1=2.80, then forming a fraction gives 280/100, simlifying yiels 14/5.

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Betting Calculator for Decimal Odds

If you do not want to go through all the trouble of conversions and calculations, use the following betting calculator to calculate winnings and pay-outs when odds are specified in the decimal form. Just enter your stake, choose the odds, and click on the 'Calculate' button.

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