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Understanding betting odds is the key to determining which matches are worth shelling out cash for. And they also give you a huge advantage over less knowledgeable players.
But apart from the cynical view regarding betting odds, there’s also a more technical side to the story. Odds aren’t mere numbers that a sportsbook places to get the best profit for minimal risks. There are people and software programs that do the math according to numerous factors that your average Joe simply wouldn’t have the necessary time to research.
The truth is that there’s a lot more that goes into these odds than the house’s desire to always win. And understanding how odds work, at least at a basic level, will help you out immensely if you want to earn some easy cash.
Calculating the Different Types of Odds
When placing an online bet, there are three types of odds you’ll have to deal with:
All three of these serve two specific purposes: they indicate how much money you can potentially win, and they show the implied probability of a certain outcome.
Whenever you see an odd with a + or – sign before the number, you’re dealing with American odds. The plus sign indicates the underdog and it shows the amount of money you would win if you were to bet $100. On the opposing side, if the number has a minus in front of it, you’re dealing with the favorite, and the number represents how much you’d need to bet to win $100.
Decimal odds on the other hand are a little easier to understand because determining how much you will win is straightforward: simply multiply your wager by the odds associated with the team you are betting on. That’s literally it.
Last but not least, fractional odds work in a similar fashion, and they are most widely used in the UK. Let’s say boxer Gennady Golovkin receives 8/13 odds in an upcoming fight with Canela Alvarez. These odds suggest that if this fight happened 21 times (8 + 13), Golovkin would lose 8 bouts and win 13.
How Software Platforms Calculate Odds
Now that you know how to read the odds, let’s find out how software and sportsbooks determine how they work for each match.
In short, most of the task is handled by an AI and a generous amount of data gathered from matchmakers, team clubs, and official league websites.
Through what’s known as data processing, the software platform can then calculate the outcome of a match based on the team’s past performance, players’ recent injuries, historical data regarding time of the year, home vs visitor winnings on a certain stadium, and much, much more.
A similar approach is taken when dealing with casino betting odds. Frankly, sportsbooks and casinos operate in an almost identical manner. Except when it comes to casinos, the odds are calculated based on a player’s winning streak, and on the probable chances of a certain outcome based on real-world situations. See BetConstruct.com for a more detailed example of how a casino-related software platform works.
What Can We Conclude From All of This?
Data and data processing are essential in determining the odds with utmost accuracy. Computers and reliable software programs can calculate the risks and rewards far better than any human can simply because they can process all of the related data in a manner of seconds.
Software platforms have evolved significantly over the past decade, and we now live in an age where computers have the possibility to predict outcomes with a 99.99% accuracy. Does this mean that the Terminators will rise up against us? No. But it does mean that we have the possibility of predicting future events at our fingertips. All we need now is for artificial intelligence researchers to further perfect their algorithms.