Weighing the odds in Sports Betting

June 25, 2008

WEIGHING THE ODDS IN SPORTS BETTING

Understanding Betting Odds

As a novice punter, a knowledge of betting odds and the associated terminology is imperative.

Stake
This is simply the amount of money a punter bets on a given event.

Odds
Odds are based on a bookmaker’s estimation of the probability of a particular outcome of a sporting event. Odds are dynamic and will fluctuate as bets are taken at the odds offered. If one team / player is particularly popular with the punters, the bookmaker will shorten those odds (i.e. offer lower odds) and / or lengthen the odds (i.e. offer higher odds) on the opposition in order to attract more people to back the lesser-fancied rival. If an outcome is referred to as being at short odds (or a short price) the bookmaker’s opinion is it more likely than an outcome at long odds (or a long price).

Odds Against
If you back a selection at “odds against”, a winning bet will return more than twice your stake. For example, £5 on a 4/1 winner will given a return of 4 x 5 = £20, plus the stake = £25. In sporting matches, the weaker team / player is often offered at odds against, as they are not expected to win.

Even Money
Even money or evens is perhaps the easiest of all odds to understand. A winning bet at evens wins the amount staked. For example, £5 at evens wins £5 which, plus the original stake, gives a total return of £10.

Odds on
Favourites in sporting matches are often quoted at “odds-on”. This means that a successful bet wins less than the stake. For example, £6 at odds of 4/6 wins £4 and a return of £10.

Odds are represented as fractions or decimals. Traditionally, fractions were always used (in the UK) but the advent of the betting exchanges has seen decimal odds become more popular. Online bookmakers allow users the option to view the odds in their preferred format.

Types of Bet

Win Single
This is the simplest and probably most popular bet of all. It usually relates to horse or greyhound racing, and your selection must be placed first for the bet to be successful. For example, suppose you had £5 on recent Royal Ascot winner Lush Lashes, at 7/1. Having watched the filly in question canter home in front, your return would be 7 x £5 = £35, plus the stake = £40.

Each-Way Single
An each-way bet is actually two bets; one for a win and one for a place, hence an each-way bet requires twice the stake of a win bet. Suppose you had backed the same horse as above, but to £5 each-way. The win part of bet still returns £40. However, there is also the place part of the bet to consider. The place terms were ¼ the odds for finishing in the first 3. So, there are additional winnings of £5 at 7/4 = £8.75, plus the original £5 stake = £13.75. The total return is therefore £53.75. If Lush Lashes had finished second or third, the win part of the bet would have been lost, leaving just the place return of £13.75. Obviously, had she finished out of the first three, the whole bet would be lost.

Multiple Bets
Multiple bets involve 2 (double), 3 (treble) or more selections (accumulator), all of which must be successful in order to win the bet. Despite the fact that bookmakers continually offer bonuses associated with multiple bets, they are NOT suitable for betting on horse or greyhound racing. The reason bookmakers are so eager to entice punters into placing such bets is that the profit margin is huge. However, multiple bets are useful for a number of short-priced selections, which, if backed singly would require too large an outlay. This can apply to football, tennis and a number of other sports. There is the potential for substantial reward for a reasonable outlay.

Setting Objectives

When betting on sporting events, it is important to clarify at the outset what you seek to achieve. For example, if you set out to win, say, £100 and are fortunate enough to achieve it, pocket your winnings and retire for the day, wearing a smug grin.

Finding the Best Odds

The simplest way to find the best odds for any sporting event is to use one of the many Internet “odds comparison” sites. Such sites compare odds from leading online bookmakers such as Ladbrokes, William Hill, Blue Square, Bet365 etc. and alert the punter to the best odds on offer. In order to take advantage of the best odds it is necessary to have several (possibly 5 or 6) accounts with different bookmakers.

When to Place Bets

The timing of bet placement can be a crucial factor in getting on a the best odds for a sporting event. This can vary widely dependent on the sport in question. Generally, for horseracing and greyhound racing it is wise to take early prices, especially when they are guaranteed, as is the case with Stan James, i.e. if the starting price is greater, you get paid out at the SP. Prices for football matches do not fluctuate greatly, unless a bookmaker is offering one team at what appears to be too big a price. For Formula One, the choice is to take a longer price prior to qualifying or a shorter price when starting grid positions are known. The latter is recommended.

Responsible Gambling

Gambling can be, and for the majority of people is an enjoyable pastime. However, there are several points which every punter should bear in mind. It is imperative for every punter to set a limit on the amount the can afford to bet, not what they would like to bet in an ideal world. Self-discipline is required to walk away once this limit has been reached. Many punters are taken in by “guaranteed” winning systems for sale on the Internet, often at exorbitant prices. Sadly there is no such animal. Finally, avoid the trap that so many punters fall into, of chasing losses. There is always another day.