How Bet Spreads Work

How Bet Spreads Work

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If you've never set foot in an actual sportsbook before or logged into an online sportsbook, the chances of you getting overwhelmed when you actually do are very high. In an actual Las Vegas sportsbook, there is typically a lot of commotion, and the odds and lines are displayed on a massive digital board for everyone to see. When a novice sports bettor looks at the massive digital signage, they will see a bunch of numbers, both positive and negative, some two digits, some three digits. They also won't have a clue what any of it means. The same can be said for the online sportsbooks. It essentially looks like a massive spreadsheet with negative and positive numbers beside each teams' name.
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The easiest way for me to describe what all these numbers mean to you is to define it as point spread betting . Point spread betting is the most popular way to bet on the NFL and NBA, and it is a way for a sportsbook to generate betting interest on both sides.
When two teams square up for a matchup, whether that be on the gridiron or on the basketball court, one team is typically better than the other (for whatever reason you want to believe). Since sportsbooks are in the business of making money, they tag the better team with a point spread, thus making them the "favorites" to win that specific game. Normally, the favorite has a few favorable factors working for them like playing at home or being well rested or playing a revenge game against a team that previously beat them. Every factor counts in the world of betting, and it's up to you to decide if the "favorite' can, in fact, cover the point spread.
If sports betting were an easy hobby, we would take the better team (playing at home) every single time and collect our winnings. But sportsbook adjust and price the money line astronomically high (depending on how much better they are than their opponent), and it simply is not worth it to lay that kind of juice.
Let's use the 2019 Super Bowl matchup between New England and Los Angeles as an example.
Moments before kickoff, sportsbooks were sitting with New England -2.5 or Los Angeles +2.5. This is what it would look like online:
Los Angeles +2.5 (-110)
New England -2.5 (-110)
This is what it would look like in a Las Vegas sportsbook:
501. New England Patriots -2.5 (-110)
Using the example above, the linemakers have determined that the New England Patriots are two-and-a-half-point favorites over the Los Angeles Rams. The favorite team can also be referred to as the chalk . The favorite will always be represented by a negative (-) number, while the underdog will always be represented by a positive (+) number.
Based on the line above and which team you decide to bet on, the Patriots must win by three or more points in order for those with a Patriots (-2.5) ticket to be declared a winner. As long as the Patriots win by three or more points, the final score itself does not matter. A 3-0 win is just as much a winner as a 34-31 win.
However, if the Patriots were to win the game by two points or less, then all Patriots backers can toss their tickets in the trash. A 30-28 or 21-20 Patriots win would cash the tickets with Los Angeles +2.5 on them. A Rams outright win as two-and-a-half-point underdogs would also do the same.
The same rules apply to the NBA as well. The favorite must win by more than the line dictates, while the underdog must stay within the number or win the game outright.
The standard price to pay when betting on point spreads is (-110). This is the sportsbooks way of ensuring a profit no matter which side covers the spread. The extra 10 cents is also known as the "juice" or "vig" . Paying the extra 10-cents is like paying a tax or commission to the sportsbook for brokering the bet.
The -110 line means that in order for you to profit $100, you must wager $110. Some sportsbook offer something called "reduced juice" , which means that you can still profit $100 but the risk is a few dollars less.
For example, if you see reduced lines such as -7.5 (-105), that means that you must risk $105 dollars in order to profit $100. If you see -7.5 (-102) then you must bet $102 in order to profit $100. It may not seem like a big deal at the time, but saving a few bucks each time over the course of the season can really help your bankroll.
Which brings me to my next point. If you are serious about getting into sports betting, it is vital to have more than one sportsbook to make a wager at. Shopping around for the best lines will help your bankroll, and you will be able to turn a bigger profit. If you see a pair of sneakers for $110 at one store, and the exact same pair is $102.99 at another store - which store are you buying them from?
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The three main types of betting odds are fractional (British) odds, decimal (European) odds, and money line (American) odds. These types are alternate ways of presenting the same thing and hold no difference in terms of payouts. Britsh fractional odds are the ratio of the amount (profit) won to the stake. European decimal odds represent the amount one wins for every $1 wagered. Depending on the negative or positive sign, American money line odds either indicate the amount one needs to wager to win $100 or the amount one would win for every $100 staked.

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One of the simplest kinds of wagers, a money line bet tries to pick the winner.

Over-under bets, also called total bets, are a wager that the points total for a game will be larger or smaller than a sportsbook predicts.

In sports betting, a parlay bet is a bet made up of two or more individual wagers. Combining bets makes them harder to win but increases their payout.

A sportsbook is a company or entity that accepts bets.

In sports betting, a teaser bet is a type of parlay bet in which the bettor is allowed to change the point spread for a game.

A bookie, slang for “bookmaker,” is someone who facilitates gambling, most commonly on sporting events.

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If you are planning to start betting—be it in a casino, sports betting, or any other type—it’s essential to understand the odds. Placing bets intelligently requires having a good grip on the main types of betting odds and the ability to read and interpret their various formats.

The three main types of betting odds are fractional (British) odds, decimal (European) odds, and money line (American) odds. These are alternate ways of presenting the same odds and hold no difference in terms of payouts. This means that the chances (or the percentage probability) of an event occurring can be converted and presented in any of the odds mentioned earlier.

Fractional odds (aka “British” odds, “U.K.” odds, or “traditional” odds) are popular among British and Irish bookies . They are typically written with a slash (/) or hyphen (-).

A fractional listing of 6/1 (six-to-one) odds would mean that you win $6 against every $1 you wager and receive your dollar back (i.e., the amount you wagered). In other words, this is the ratio of the amount (profit) won to the initial bet, which means that you will receive your stake ($1) in addition to the profit ($6), resulting in a total payout of $7. Therefore, if you stake $10 at 6/1 and win, you get a total payout of $70 ($60 profit + $10 stake).

The total (potential) return on a stake can be stated as:

Let’s posit that the following are the odds on the three teams most likely to win the 2022 NBA Championship:

It can quickly be determined that the Brooklyn Nets are the favorites, while the odds on Golden State and Milwaukee winning are longer. You would win $13 against every $5 you wager on Brooklyn to be the champions. Meanwhile, you'd win $9 against each $2 you put at stake for Golden State to win, which is a bit less probable. For Milwaukee, you'd win $7 against each $1 bet.

In the above example, if you bet $100 on Brooklyn to win, you could make a $260 profit ($100 x (13/5)) and get back your initial stake of $100, resulting in a total payout of $360. However, if you wager $100 on Golden State to win, you could receive a profit of $450 ($100 x (9/2)) in addition to the $100 initial stake, leading to a total payout of $550.

The potential profit for a Milwaukee win would be even higher because you could make a profit of $700 ($100 x (7/1)). With the initial stake of $100 returned, it would result in a total payout of $800.

Decimal odds (aka “European” odds, “digital” odds, or “continental” odds) are popular in continental Europe, Australia, New Zealand, and Canada. These are a bit easier to work with and understand. The favorites and underdogs can be spotted instantaneously by looking at the numbers.

The decimal odds number represents the amount one wins for every $1 wagered. For decimal odds, the number represents the total payout rather than the profit. In other words, your stake is already included in the decimal number (no need to add back your stake), which makes its total payout calculation easier.

The total (potential) return on a stake can be calculated as:

Let’s look at an example involving who might have won the 2020 U.S. presidential election.

These numbers represent the amount you could win against each $1 you put at stake. So, if you bet $100 on Donald Trump to be reelected as president, you could receive a total payout of $400 ($100 x 4.00). This amount includes the initial stake of $100, resulting in a net profit of $300.

Similarly, you could receive a total payout of $130 ($100 x 1.3) if you successfully bet $100 on Joe Biden. Deducting $100 from this return gives you the $30 net profit earned.

Here we can see that the bookmaker correctly priced Biden as the favorite to win the election. The higher the total payout (i.e., the higher the decimal odd), the less probable (and riskier) it is for the listed candidate to win.

Money line odds (aka “American” odds or “U.S.” odds) are popular in the United States. The odds for favorites are accompanied by a minus (-) sign and indicate the amount you need to stake to win $100. On the other hand, the odds for the underdogs are accompanied by a positive (+) sign and indicate the amount won for every $100 staked.

In 2018 the Supreme Court gave U.S. states permission to legalize sports betting if they wish to do so. It is legal in 30 states, with other states either working on legislation or not considering it. 1

In both cases, winners get their initial wager back in addition to the amount won. The difference between the odds for the favorite and the underdog widens as the probability of winning for the favorite increases.

Let’s understand this with the help of an example:

Let’s say a betting website priced an NFL game between the Pittsburgh Steelers and the Kansas City Chiefs with the following money line odds.

The bookmaker has offered odds of +585 for the Steelers, which indicates that the bookmaker has placed a much lower probability (about 15%) that the Steelers will win the game. Therefore, you need to risk $100 on the Steelers to make a potential win of $585. If the Steelers can pull off the upset, you get back your initial stake of $100 in addition to the $585 you won, giving you a total payout of $685.

If you decide to bet on the Chiefs—the team that, according to the bookmaker, has a higher implied probability of winning the game—you would need to bet $760 to win $100. If the Chiefs are victorious, you win $100 with a total payout of $860 (initial stake of $760 + profit of $100).

In this matchup, there is a big difference between the two odds, indicating a much higher probability of the Chiefs winning the game.

Seven to two odds imply that every $2 wagered could win you $7 if the bet is successful. With fractional odds, the number on the left expresses how much you win, while the number on the right reveals how much you need to stake.
When odds are expressed with a plus (+) or minus (–) symbol followed by a number. They are American money line odds; for example, +200 signifies the amount a bettor could win if wagering $100. If the bet works out, the player would receive a total payout of $300 ($200 net profit + $100 initial stake).
Negative numbers (in American money line odds) are reserved for the favorite on the betting line and indicate how much you need to stake to win $100—you generally need to put down more to win $100 on the favorite. Conversely, positive numbers are attached to the underdog and refer to the amount you could win if you bet $100. You stand to make more money on positive odds, but the chances of a win are lower.
Vegas odds are used in sportsbooks. American money lines are used and include a point spread and total number of points the bookmaker thinks will be scored. This allows bettors to bet over or under the bookmaker's score, and indicate what they believe the difference in points will be.

If you are planning to enter the betting world, it is important to be able to understand and interpret all types of odds well. You need to be familiar with the conversions between the different formats of odds, the conversion of odds into implied probabilities, and the differences between the true chances of an outcome, as well as the odds on display. Only then can you place a well-educated bet.

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The proliferation of legal sports gambling in the U.S. has attracted millions of new bettors. If you are a newbie who wants to get in on the action, it’s imperative to understand what sports betting odds are, what they mean and what they entail for the bettor.
Sports betting odds involve two things.
First, sports betting odds outline a particular game or event outcome’s theoretical likelihood. Oddsmakers will set the lines according to the implied probability of either outcome happening. The sum of the probabilities exceeds 100%, as sportsbooks take a small cut on both sides of a line.
Second, sports betting odds dictate how much money a bettor needs to wager to make a certain profit.
Odds are displayed in one of three ways: American, decimal or fractional fashion. However, sports betting odds reflect just one part of the betting process.
Sports betting lines reflect a matchup’s expected margin of victory or defeat.
For example, the Boston Celtics and the Los Angeles Lakers are playing tonight. If oddsmakers calculate the Celtics will win by five points on average, they will set a line such as:
This adds or subtracts points from a team’s final score based on if they are the favorite or the underdog. If you bet the Celtics -5, they would need to win by more than five points for the bet to win. If you bet the Lakers +5, they would need to win outright or lose by less than five points for the bet to win.
Every line has corresponding betting odds, but those lines almost always imply a 50% probability with the sportsbook cut baked in.
Sports betting odds and lines come from sportsbooks and are offered to the consumer. You will find sports betting from websites like DraftKings, FanDuel and BetMGM.
The odds can come from a third-party firm, such as Kambi Group, or through in-house development. Sportsbooks that use the same third party for their odds typically have identical lines for many markets, but various promotions often alter lines.
Sportsbooks typically have a head oddsmaker who sets the odds and lines for games and events. This oddsmaker relies on sources such as computer algorithms, power rankings and outside consultants to set precise lines.
There are three ways to present odds.
The first way is American odds. American odds are based on a $100 bet but differ based on which side of the bet is expected to win.
If the bet is favored to win, you will see negative odds (- sign in front). This means you need to risk a certain amount of money to profit $100. For example, if the odds for a bet are -150, a bettor would have to bet $150 to profit $100.
If the bet is not expected to win, you will see positiv
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