How do betting odds work in Australia and how to read odds

WANT to sharpen your betting skills and understand odds like an expert? Our comprehensive Australian betting guide breaks down everything you need to know.

We’ll explain how to decipher the different odds formats, calculate payouts, and leverage them to your advantage.

Betting odds explained AU

Sports betting is a fun pastime activity. However, several factors must be considered if you want to be a successful bettor. Understanding odds is the first thing you must do whether you are into casino gaming or sports betting. 

Betting odds help you know how much profit you get from a certain bet. The leading Australian betting sites have different odds formats, from decimal to fractional odds. 

Our complete guide answers all your questions about betting odds, including the various types, how they work, and more.

How does betting work?

Sports betting is the act of risking your money on the outcome of any sports event. The goal of betting is to profit from your wager. There are various sports betting wagers, like the under/over, moneyline, props, and futures. The way you place a bet may vary depending on the bookmaker, but the process is the same. 

While betting is a great way of supporting your team and players, winning is not guaranteed. Factors like money wagered, bookmakers, and odds determine how much money you can get when you place a bet.

What are odds in betting AU?

Simply put, betting odds outline the theoretical likelihood of an event’s outcome. Bookmakers use odds to indicate how much money punters can win if they wager on a certain market. 

Low odds in sports betting imply the event may happen in favour of the bookmaker, while high odds mean that the outcome may not happen. Sports betting odds are presented in decimal, American, and fractional formats.

Fractional odds

The UK and Irish sportsbooks commonly use fractional odds and are represented as (1/12). Fractional odds allow you to calculate how much they can win on a bet compared to the staked amount. The number on top or numerator represents what you will win, and the denominator is the stake.

For example, if a sports event has a fractional odd of 12/2. It means that for every AU$2 you wager, you will win AU$12. So, if Australia has odds of 10/4 to win the AFC Asian Cup, you will bet AU$4 to win AU$10.

To convert a fractional odd to a decimal odd, divide the top number (numerator) by the bottom number (denominator) and add 1 to the result. Formula: (numerator/denominator) + 1. Conversely, you convert a decimal odd to a fractional odd by subtracting 1 from the decimal. If the result is not a whole number, you turn it by multiplying it with the numerator.

Decimal odds

Decimal odds are quite popular on Australian sports betting sites. They are considered the easiest by punters because the format is straightforward. The number indicates the amount you will get for every AU$ 1 wagered if the bet wins. You multiply the stake by the decimal odds to determine your potential profit.

For example, Australia to win the AFC Asian Cup with odds of 2.3, and you stake AU$10. You will receive AU$23 if Australia wins (net profit of AU$13).

Two steps are involved in converting decimal odds into fractional odds. First, you convert odds into a fraction by subtracting 1 and using the number as the denominator. Then, you find the nearest whole integer to make it a perfect fraction.

On the other hand, to convert decimals to American odds, you first check if it is a positive or a negative odd. You divide the moneyline by 100 for positive American odds and add 1. Conversely, you ignore the negative sign in front of the odds in the negative American format and divide it by 100 before adding 1.

American or moneyline odds

American odds usually have a + or - symbol to indicate odds against (+) or on (-) a particular event. 

For example, if Australia is playing South Korea in the AFC Asian Cup, and Australia are +150 to win. The odds indicate they are underdogs, while South Korea, with odds of -100, is the favourites. This means that for every AU$100 you bet on Australia, you will make AU$150 profit.

To convert positive American odds to decimal odds, you divide the odds by 100 and add 1. You divide the numerator by 100 for negative American odds and add 1. Convert American odds to fractional odds by turning the fraction into a decimal and dividing the numerator by the denominator.

How to read betting odds AU

Odds are crucial for making profits in sports betting. They help you determine your potential profit from a particular bet. By mastering how to read odds correctly, you understand how sportsbooks determine the outcome of an event. The higher the chances of an event happening, the lower your chances of profiting from it. The opposite is true. 

In the case of fractional odds, if the numerator is bigger than the denominator (15/1), it means it's an ‘odds against’ bet, with low chances of the bet winning. It is an ‘odds on’ bet if the denominator is bigger than the numerator, such as 1/15). The chances of such an event happening are high.

As for American odds, the minus (-) sign represents the amount you must bet to get AU$ 100. The positive (+) sign indicates the amount you will win if you stake AU$100. 

Decimal odds are straightforward, showing the potential profit for every dollar you stake on a correct bet. Low numbers represent the favorites, and high numbers represent the underdogs. Simply put, you gain more from underdog bets than from the favorites.

What is probability?

Probability is simply the likelihood of an event happening. If the outcome of something happening has a low probability, it’s less likely to occur. On the contrary, an event with a high probability is more likely to happen. 

Knowing how to convert odds into probability is helpful if you want to be a long-term bettor. Let's examine how betting odds are converted into probability.

The process of converting decimal odds to probability is straightforward. You divide the odds by 1 and multiply by 100 to get the implied probability. For example, if a bookmaker sets odds of 1.75 for Australia to win the AFC Asian Cup, the implied probability will be 57%.

Converting fractional odds to probability involves dividing the sum of the numerator and the denominator by the numerator and multiplying by 100. 

American odds are presented in two ways: a plus sign (+) and a minus sign (-). You will convert these odds to probability using the same method. 

• Positive odds (+): Probability = Positive Odds/(Positive Odds + 100) 
• Negative odds (-): Probability = Negative Odds/(Negative Odds - 100)

How are betting odds calculated?

Calculating sports betting odds can be a challenge, especially for beginners. Thanks to technology, you can determine the outcomes with online odds calculators. You can also calculate odds manually using various proven methods. The best way to see how odds are calculated is through an example of an event with a 50/50 outcome. Bookmakers combine statistical analysis and market research. The analysis covers data from past events, injuries, the current state of players, and other factors. 

Fixed odds vs. tote odds

Fixed and tote odds are the two common forms of placing wagers in online gambling. Both have their benefits and drawbacks for the bettor. 

In fixed odds betting, the bookmaker sets and determines the odds, which remain the same until the end of the event. For instance, if you bet on Australia with odds of 5/2, they will be constant, regardless of whether they change later. Many choose fixed odds because they are straightforward, easy to predict, and have higher payouts.

On the other hand, in tote odds betting, all the money staked by punters is collected and shared among the winners. Unlike fixed odds, tote odds shift based on the amount of money staked on each outcome. They are easy to use, have higher payouts, and have big rewards for the favorites. 

FAQs

1. Do people in Australia usually bet on their favorite team?

Yes. Many Australians bet on their national team for excellent performance in big leagues and tournaments. The team is also featured on multiple leading Australian betting apps. 

2. Which sport is the easiest to bet on in Australia?

Football is the easiest sport to bet on in Australia. The odds are big, and the betting process is straightforward. Many top sportsbooks in the country also offer football betting markets.

3. What does +200 odds mean?

This positive American odd indicates your winning amount for staking $100. It also represents the underdog team in the market. 

4. What does +/- mean in betting odds?

Plus (+) and minus (-) are symbols of American odds. An odd with a plus (+) sign represents what you win for betting $100, and an odd with a negative (-) sign is the amount you must wager to get $100 in profit.

5. What are 7 to 2 Odds?

This odd implies that for every $2 you wager, you stand a chance to win $7. If it is a fractional odd, the numerator is the amount you win, and the denominator is the amount you must stake.

6. What does 20-to-1 mean?

When you have 20-to-1 odds, it implies the bet is unlikely to win. A team with 20-to-1 odds has an implied probability of 4.76%. But you profit $20 on every $1 wagered if it wins.

7. What does +125 mean?

If you see a team with +125 odds, it means it is an underdog. Placing a $100 bet with this odd will make you a $125 profit. 

8. What +250 odds mean?

This is a positive American odd that works in a simple way. A team with +250 odds means you earn $250 for every $100 you bet. 

9. What does a +7 spread mean?

A +7 spread represents an underdog with 7 points. In this case, the team you bet on must beat its opponent outright or lose by 6 points or less. 

10. What is the Vigorish?

Vigorish is simply the house edge in sports betting. It represents the amount a bookmaker earns from bets in the long run.

11. What does it mean when odds are negative?

The team is a favorite when the odds are negative and represents the amount you must wager to get $100.

12. What does it mean when odds are positive?

Positive odds stand for the underdog team, indicating the amount you will win with a stake of $100. 

13. What is Chalk in sports betting?

Chalk in sports betting refers to the favorite or expected winner in a game or match. It's the team or player that is deemed most likely to win based on odds and expert predictions.

14. What does a pick’em mean?

Pick’em is where there is no definitive favorite or underdog. It means that the bookmakers do not see the benefit of either team.

How do betting odds work in AUS?

Anyone looking to make a killing betting on sports would do well to familiarize themselves with the odds system before placing their first multi-bet. You need to know how to calculate probability and other basics of sports betting. Master the odds formats, conversions, and how they are displayed on various bookmakers. Knowing the odds, you can bet on any sport you want in Australia.

Remember to gamble responsibly

A responsible gambler is someone who:

• Establishes time and monetary limits before playing
• Only bets money they can afford to lose
• Never chase their losses
• Doesn’t bet if they’re upset, angry or depressed
• BetStop – www.betstop.gov.au
• Gambling Help Online – www.gamblinghelponline.org.au

For help with a gambling problem, call the Australian National Self-Exclusion Register on 1800 238 786.