SHOWCASE MAGAZINE | 2018
skill that’s well worth learning. This allows bookmak-
ers to set the odds for any given event - including a
house edge - but also means bettors can compare
their opinion to those of the person setting the pric-
es and see what their return would be if their bet is
correct at the odds on offer.
As an example, if you want to back a team to win a
game at 3/1 for N100, the total returns for this selec-
tion would be N400 should they be come out on top
in the match. N300 of that would be the profit that
the odds suggest, plus the initial N100 stake.
Because bookmakers are the ones setting the prices
on their own websites or in shops, they have the
luxury of building in a house edge when doing so.
Much like the 0 on a standard roulette wheel (or the
0 and 00 on an American one) this is their opportu-
nity to make their advantage count. The amount of
edge built into an event or a specific market can vary
wildly across different operators and sports, but let’s
use football as an example. The implied percentage
chances for any given set of outcomes will not add
up to 100% exactly with the bookies, they build in
their edge by setting prices that total more than
that. This doesn’t mean that you can’t make money
betting on sports (or anything for that matter) but
knowing the odds and what you’re up against is key.
In summary, betting odds represent the probability
of an event to happen and therefore enable you to
work out how much money you will win if your bet
wins. As an example, with odds of 4/1, for every N1
you bet, you will win N4. There is a 20% chance of
this happening, calculated by 1 / (4 + 1) = 0.20.
Now What?
That’s it! Hopefully, that clears up betting odds. You
should now have the knowledge to read betting
odds, understand how likely it is to happen, and how
much you stand to win.
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