The Concept of Odds
The odds are the key concept to understand the world of sports betting and casinos. Some people might believe that odds are just some random numbers and casinos, or bookies profit out of losers, which is not correct. Odds are an integral part of the business model of such companies, and a small decimal odd can hide a big universe of the match behind it.
We don’t want you to understand how to profit out of founding a bookmaker or a casino. Still, we want you to learn how to interact with them by understanding exactly how they work through the most critical institution of the gambling industry: the odds.
Real numbers determine the odds of casino games such as Roulette, i.e. they are estimations but real, concrete odds.
The casinos don’t worry about the volume they take on a specific Roulette number or Baccarat round simply because the odds for these events to happen are quite easy to understand. In other words, these games are based on luck and not on skills.
Sports events odds, however, work in a much different way.
Sports Betting Odds
Bookmakers calculate odds using estimations; because no one can predict how humans will behave when playing Ice Hockey or Football, you can’t be 100% sure about an interaction between so many individuals that have emotions and work as a team.
Estimations can be quite useful these days, but they are what they are: estimations. Sports betting can be a profitable activity, but it involves calculating outcomes. Many tools can be used, along with in-depth research, to explore potential outcomes.
How to Calculate Odds
The most popular system of odds when it comes to Ice Hockey and Football is the decimal system, and the calculation of the chances of an event happening using them is easy if you can simply think of an exact percentage that represents your impressions.
Let’s say you believe Finland will win the next Ice Hockey match against Sweden, and they have chances of 50% of doing that. If you divide 100% / 50%, you get 2.0 which would be what professional gamblers call ‘your fair odd’.
How to Profit with Wrong Odds
Considering your estimations of what the fair odd should be, i.e. the decimal odds that represent the chance of an event happening, you must start searching for odds that are bigger than that number.
If you come across an odd of 2.50 for the Ice Hockey match between Finland and Sweden, that means the market believes Finland isn’t that likely to win the match as you think. The markets, however, make mistakes all the time. If you bet on these odds, you would be after what profitable gamblers call ‘the value’. Bet on valuable odds repeatedly, and your bankroll will start growing!