Types of Odds When Working with Bookmakers
Lately, online betting has been increasing significantly all around the world. It is mainly due to the increase in usage of smart phone and other electronic gadgets.
Lockdown due to the Corona virus outbreak has also been another factor for this growth. As many countries have established strict rules regarding social distancing and lockdown, many people (betters) have now preferred to bet their odds directly from home rather than visit the broker (bookmaker) itself.
If you are planning to get started into the world of online betting, this is the perfect time to do so. This is because, the Corona virus pandemic is far from being over and at the end of the 2022, one of the greatest and most watched international football competition – World Cup 2022 is going to be held. So, the online betting is bound to get rise during that time and if you have prepared all the process in an organised way, this can turn out to be a profitable venture and you could earn a fortune.
Starting Up an Online Betting Website
Starting an online betting business can be an easy task if you start working with a plan in place. First of all, you would need a website or a platform where you can place your betting odds. We recommend you to use the WordPress platform as it comprises abundant number of free WordPress themes with quite easy features to allow even non-coders to build and design a beautiful website in less amount of time. To know more about creating a football website, please refer to our blog post: How to Start a Football Website or Blog.
Integrating Live Score Football API on your Website
Now that you have created a website for online betting, you need to integrate a Live Score Football API on your website. The football API will automatically fetch the real time information and stats on your site to keep your audience up to date. This information includes scores, standings, history and fixtures, goal scorers, club head-to-head comparisons and many more.
Setting Up Different Types of Betting Odds
Now that, you have integrated your site with the football API, it’s time to add the betting odds on the fixtures. Generally, there are 3 different types of betting odds that can be used for online betting.
They are: Decimal, Fractional, and American
Here we will explain all 3 of them in detail and provide you with the working mechanism to calculate the payouts for each of the betting odds. Also, to clear your doubts furthermore, we will provide an example for each of the odds and calculate their payout if they match the outcome.
With that being said, let’s discuss the different types of betting odds:
Decimal Odds
Decimal Odds is the most common way that online bookmakers use to present their odds to the customers. They are often called European odds, digital odds or continental odds as they are commonly used across different countries in Europe, Australia and Canada.
Decimal Odds are quite easy to understand and simple to work with, thus making them popular across the world of bookmakers and sports bettors.
How Do Decimal Odds Work
Generally, Decimal Odds provide a certain number of decimals for two or more parties and all your user will have to do is place the amount (money) that they want to wager. And if the outcome comes in the favour of their choosing, the actual payout (rather than the profit) is calculated by multiplying the stake that have been wagered with the decimal odd number provided by the bookmaker.
Total Payout = Stake That User Have Wagered * Decimal Odd Number Given By Bookie
Suppose on an English Premier League (EPL) game between Manchester City and Manchester United, bet365 has placed a decimal odds of 1.90 for Manchester City to win, 9.00 for game to draw and 21.00 for Manchester United to win.
So, if your client places a wager of $100 on Manchester City win and the game ends in a Manchester City win, the payout excluding the bookmaker fee will be calculated as:
1.90 * $100 = $190
Similarly, if your users place wager of $100 on Manchester United win and the game ends in a Manchester United win, the payout excluding the bookmaker fee will be calculated as:
21.00 * $100 = $2100
Fractional Odds
Another odds used for online gambling/betting is fractional odds. They are quite popular among British and Irish bookies and are also called British Odds or U.K. odds. Though these types of odds are a bit confusing to calculate, they are still used by some of the largest bookmakers around the world.
How Do Fractional Odds Work?
Fractional Odds are typically written with a slash (/) or a hyphen (-). These symbols usually separate the odds of two numbers (numerator and denominator) and will allow you to calculate the amount of money that your visitors win in the bet in comparison to the stake that they had applied.
To calculate the total payout, first of all you need to take out the profit that is gained after winning the odds.
It is calculated as: {Wagered amount * (numerator/denominator)}
Now that the profit is calculated, simply add it to the initial wagered stake that your client has applied for the odds.
Total Payout = Initial Wagered Stake + Profit Gained after Winning the Odds or {wagered amount X (numerator/denominator)}
Suppose in a season, Liverpool is considered as the favourite to win the UEFA Champions League and bet365 has kept the odds of 11/4 for Liverpool to win the competition.
So, if your user has wagered $100 for the odds and Liverpool does wins the competition the amount of profit that they will receive excluding the bookie commission will be calculated as:
{$100 X (11/4)} + $100 = $375
The same method is applied for live matches or any other events.
American Odds
American Odds, also known as Moneyline Odds, are popular among the sites catered by sports bettors in the United States. These types of odds are pretty easy yet tricky to understand as the odds are displayed either plus (+) or minus (-) to indicate the amount the one needs to wager to win either $100 or the amount that one would win for every $100 staked.
How Do American Odds Work?
Unlike other odds mentioned above, American odds do not have any formula to calculate the payouts. They always use a baseline value of $100. For favourite, an interested candidate will have to wager the money to win $100 while with underdogs they will risk $100 to win the amount.
In an Major League Soccer match between Philadelphia Union vs Minnesota United, looking at recent results, Philadelphia Union is considered as the favourite to win the match so the negative of -155 is placed and the game ending in draw has positive odds of +275. While Minnesota United is considered as the underdogs so a positive odds of +425 is placed.
So, if anyone is planning to bet on Philadelphia Union, they will need to wager $155 to win $100 due to the negative betting odds.
Similarly, if anyone is planning to bet on the draw or Minnesota United, they will need to wager $100 to win $275 and $425 respectively.
The Bottom Line:
These are the 3 major types of odds used for online betting/gambling. So, if you are planning to enter the world of betting, you must know well about these odds to help your mobile app users and website visitors choose the best and most favourable ones. Finally, we have mentioned the popularity of the odds on different regions of the world to enable you know which types odds are popular nearby your reason.