How does sports betting work?

Sports betting is simply the act of placing money on an outcome (or event) of a sporting match. The service that facilitates the betting is known as a bookmaker or sportsbook (used interchangeability). The primary function of these services is to set odds, accept bets and pay out winnings.

Odds indicate the amount you can win from placing a specific bet. Sportsbooks set odds for a range of different outcomes and events in a sporting match.

Odds can be represented in different formats, often depending on what country you are betting in. The common representations are decimal, fractional and American.

Here we can see equivalent odds for each different representation.

Odds are calculated based on the likelihood of that particular outcome or event of occurring. In this way, odds can be thought of as a representation of probability.

Sportsbooks aim to calculate the probabilities for particular outcomes or events using complex models. The models take into account a whole range of historic statistics and aim to accurately put a number on the probability. Sportsbooks will spend a great deal of their resources in developing accurate prediction models and in gathering a large amount of data to input into the model.

Implied probability is simply the probability that the odds imply. This can be calculated by taking the inverse of the odds.

We recommend frequently converting odds into implied probability to solidify the concept of how odds and probability is linked.

Sportsbooks commonly offer many different types of betting. Here we can see for just one match there are 227 different categories or markets to bet on.

It can be confusing when first viewing the large amount of options available, but once you understand the few main types it will become far clearer. In general it is best practice to limit your betting to these main market types.

Moneyline

The moneyline, also known as the head to head or match result, is simply the market for the overall match winner. This is the most common bet type and is very simple to understand - there are only 2 or 3 outcomes; Team A wins or Team B wins or a draw depending on the sport.

Match total

The match total is the total amount of goals or points scored in the game. It is simply the score of Team A plus the score of Team B.

A total can be displayed in many different formats - here is an overview of the common formats.

Over and under format

This format presents two options; the total score is over a certain number or the total score is under a certain number.

In this case 'Over 229.5' represents a total greater than or equal to 230 and 'Under 229.5' represents a total less than or equal to 229 - meaning all outcomes are covered.

Over and under push format

This format is similar to the previous format, with the difference being three result options instead of two.

In this case 'Over 41' represents a total greater than or equal to 42 and 'Under 41' represents a total less than or equal to 40 - leaving a total of 41 uncovered.

In most cases if the total result lands in the middle, 41 points in our example, your stake will be pushed, or in other words refunded.

Plus format

This format presents only one option, with the total being greater than or equal to the designated value.

In this case the total result must be 4 goals or more.

Team total

The team total is simply the total goals or points for a specific team.

In this case the team is the 'New England Patriots' and the team total options are 'Under 19.5 points' and 'Over 19.5 points'.

Team totals can be displayed in all the same formats as match totals.

Handicap

A handicap can be thought of as an artificial advantage or disadvantage put on one team. This adjustment comes in the form of either adding or removing points/goals from a teams score, which can act to change the outcome of a match winner.

In this case we are betting on Atlanta Hawks to win with a -7.5 point disadvantage. This means that in order for our bet to win Atlanta Hawks must win by 8 points or more.

In this case we are betting on Melbourne United to win with a 4.5 point advantage. This means that Melbourne United can lose by 4 points or less but our bet will still win.

Three-way Handicap

This is an alternative format of a handicap featuring three bet options, removing the need for half points.

In this case 'Aston Villa -1' represents a -1.5 goal disadvantage for Aston Villa, 'Fulham +1' represents a 0.5 goal advantage for Fulham and 'Draw (Aston Villa -1)' represents the draw outcome for a -1 goal disadvantage for Aston Villa.

You can find the standard representation for the options by subtracting 0.5 from each handicap and disregarding the 'Draw' option.

Push format

A push format also exists for handicaps, where if the result lands on the line, the bet is refunded.

Player proposition

A player proposition, or player prop, is a broad bet type associated with any market that features a match statistic of a player.

Player props include total points/goals scored by a specific player, total rebounds, total assists, total touchdowns etc.

Examples

Multi/Parlay

A multi (or parlay) is a bet that combines the previously listed bet types into one single bet. The odds for the individual selections are combined and overall multi odds are displayed.

Head-to-head multi

A head-to-head multi is a combination of moneyline bets.

Same game multi (SGM)

A same game multi is a combination of selections within the same game.