How to Understand Betting Odds: American Odds Explained

How do you read American odds?

Reading American odds comes down to recognizing whether you’re looking at a plus (+) or minus (-) sign before the number. This single symbol tells you immediately whether you’re betting on a favorite or an underdog. The numbers that follow are the odds, which help you determine the potential payout and implied likelihood of the outcome.

The key to reading odds quickly is understanding that bigger numbers can mean bigger risks and larger potential rewards. In contrast, smaller numbers (the larger the negative number) are considered more likely to win, but carry a smaller potential reward.

A team at +500 is a much bigger underdog than a team at +150. Meanwhile, negative odds such as -300 point to a stronger favorite than a team with at -150.

Positive American odds (+): Underdogs

Positive odds show you how much profit you stand to make on a $100 bet. This means if you see +200 odds, a successful wager would win $200 in profit for every $100 you wager. Your total return would be $300 because you get your original $100 back plus the $200 profit.

The math works the same way for any bet amount, but the potential return changes based on the stake and odds. If you bet $50 at +200 odds, you could win $100 in profit for a total return of $150, while $10 at +200 could win $20 in profit for a total return of $30.

• Higher positive numbers mean bigger underdogs: +400 odds represent a much less likely outcome than +150 odds.
• Bigger risk equals bigger reward: The higher the positive number, the more money you can win.
• Easy scaling: Every positive odds listing scales from the $100 baseline.

Negative American odds (+): Favorites

Negative (-) odds show you how much you need to bet to win $100 in profit. This means if you see -150 odds, you must wager $150 to recoup $100 in profit. Your total return would be $250 because you get your original $150 back plus the $100 profit.

Just like positive odds, negative odds scale for any bet amount. If you want to bet $75 at -150 odds, you could win $50 in profit for a total return of $125 ($75 + $50). The ratio stays the same regardless of your wager size, with the return varying based on the odds.

• Higher negative numbers mean bigger favorites: Odds of -300 suggest a much larger favorite than a team listed at -120.
• Lower risk equals smaller rewards: The larger the favorite, the less of a return you can expect on a winning bet.
• Simple scaling: In order to win $100 at negative odds, you’ll have to wager an amount equal to the line, such as $125 at -125.

How do I calculate American odds payouts?

Calculating payouts with American odds becomes second nature once you master the basic formulas. The key is remembering that positive and negative odds use different calculations, but both are built around that $100 baseline.

For any bet you’re considering, you can quickly determine your exact payout before placing the wager. This transparency helps give you a quick understanding about risk versus reward on every single bet you consider placing.

Mental math for calculating American odds

For positive odds, simply move the decimal point two places to get your multiplier. If the odds are +200 odds, you multiply your bet by 2.0, while +150 odds mean you multiply by 1.5.

For negative odds, flip the calculation by dividing 100 by the odds number. With -200 odds, divide 100 by 200 to get 0.5, meaning you win half your bet amount in profit. With -150 odds, divide 100 by 150 to get 0.67, which means you win about two-thirds of your bet in profit.

• Positive odds shortcut: Drop the plus sign and divide by 100 to get your profit multiplier.
• Negative odds shortcut: Divide 100 by the odds number to get your profit multiplier.
• Quick verification: Your total return always includes your original bet plus any profit.

Odds and implied probability

Implied probability converts odds into a percentage that shows how likely an event is to happen according to the sportsbook. This percentage helps you evaluate whether you think there is value to be had.

Every set of odds has a built-in probability that you can calculate with simple math. Understanding implied probability helps you spot opportunities where you disagree with the sportsbook’s assessment.

Probability formula for positive odds

100 ÷ (odds + 100) × 100.

Positive odds example: For +200 odds, that would work out to 100 ÷ (200 + 100) × 100 = 33.33%.

Formula for negative odds

Odds ÷ (odds + 100) × 100.

Negative odds example: For -150 odds, that’s 150 ÷ (150 + 100) × 100 = 60%.

If you think a team has a better chance of winning than the implied probability suggests, you might have found a valuable betting opportunity. On the other hand, calculating the probability may change your perspective on the actual potential of a wager.

How to tell if betting odds have value?

Finding value in betting odds means identifying situations where you believe the actual probability of an outcome is better than what the odds suggest. This skill helps separate successful bettors from those who simply guess on their favorite teams.

Value betting requires you to develop your own opinions about games and compare them to what the sportsbook is offering. When your assessment differs significantly from the likelihood suggested by the odds, you may have spotted a profitable opportunity.

Start by calculating the implied probability of the odds you’re considering. If a team has +250 odds, the implied probability is 28.57%. Ask yourself: does that team have a better than 28.57% chance of winning?

If your answer is yes, you’ve potentially found value. The same logic applies to favorites. When a team is listed as a -200 favorite (66.67% implied probability), but you think they should win 75% of the time, that could be value.

Smart bettors also use Hard Rock Bet’s features to enhance their value-hunting. The Hundred offers boosted odds on select bets.

The Discover Page provides insights into popular betting trends, helping you identify where public opinion might be creating value on the opposite side. Before getting in the game, take the time to explore the features and use them to your advantage.

• Assess and compare: It’s worthwhile develop your own opinion before looking at the odds. What stands out?
• Calculate implied probability: Converting odds to percentages can help you to conceptualize the probability differently.
• Determine risk vs. reward: Determine if you’re comfortable with the potential return based on your stake.
• Use available tools and promos: Take advantage of odds boosts and betting insights when they align with your analysis.
• Track your results: Keep records to see if your assessments are right over a large sample.

Understanding American odds gives you the foundation to make informed betting decisions on Hard Rock Bet. Whether you’re betting small amounts for entertainment or larger sums with serious intent, knowing how to read and calculate odds ensures you always understand exactly what you’re risking and what you stand to win.

FAQ about sports betting odds

We’ve assembled a few common questions and answers about betting odds below.