← Home Guide · Start here

Betting 101: how odds work

Everything on a sportsbook — every line, every price, every payout — is built on odds. Understand these three formats and the idea of implied probability, and you can read any betting board on earth.

The three odds formats

The same bet can be written three ways, depending on where you are in the world:

They're just three languages for the same thing. A −110 American line is exactly the same bet as 1.91 decimal or 10/11 fractional. Try converting between them with our odds converter.

American odds, explained

American odds are always quoted relative to $100:

Worked example. The Chiefs are −150, the Raiders are +130. A $150 bet on the Chiefs returns $250 total ($100 profit + $150 stake). A $100 bet on the Raiders returns $230 total ($130 profit + $100 stake).

You don't have to bet $100 — the odds scale to any stake. A $55 bet at −110 wins $50. A $20 bet at +150 wins $30.

Implied probability — the key concept

Every price implies a probability: how likely the outcome must be for the bet to "break even" before the bookmaker's margin. This is the single most important idea in betting.

Negative odds: |odds| ÷ (|odds| + 100)  ·  Positive odds: 100 ÷ (odds + 100)
Worked example. At −110, the implied probability is 110 ÷ 210 = 52.38%. The book is saying: this side needs to win about 52.4% of the time for the price to be fair. If your own analysis says it wins 55% of the time, you may have found value.

Here's the catch: add up the implied probabilities of both sides of a market and you'll get more than 100% — usually 104–106%. That extra is the vig (juice), the bookmaker's cut. Our vig remover strips it out to show the true no-vig probabilities.

Reading a betting board

A standard board line for one game shows three markets side by side:

TeamSpreadTotalMoneyline
Chiefs−3 (−110)O 47.5 (−110)−150
Raiders+3 (−110)U 47.5 (−110)+130

Each of these is covered in depth — with worked examples — in Bet types.

Figuring your payout

Two numbers matter: profit (what you win) and total return (profit + your original stake back). The easiest mental math uses decimal odds:

Total return = stake × decimal odds
Worked example. $50 at 2.50 returns $125 total — $75 profit plus your $50 stake.

For American odds: at −110, divide your stake by 1.10 to get profit ($110 ÷ 1.10 = $100). At +150, multiply your stake by 1.50 ($100 × 1.50 = $150 profit). Or skip the math and use the payout calculator.


Next: Bet types → — moneyline, spread, totals, parlays, teasers, props, futures and live betting, each with a worked example.