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For hundreds of years, placing a wager on a sporting event has been an integral part of human culture in many societies across the world.
It involves predicting the outcome of an event by placing money on those predictions, and, at its heart, has largely remained unchanged for centuries.
However, traditional sports betting has dramatically evolved over the past thirty years since the advent of the internet and the ability to place wagers online on a handful of licensed and regulated iGaming websites.
Let’s dive straight in to discover more about the evolution of sports betting odds and implied probability rates, and how they can be used to place more strategic/well-informed bets when fully understood.
A brief history of sports betting odds and how they have evolved over the years
According to the history books, sports betting odds have been around since the earliest civilisations, when sporting events and athletic contests became a major part of societal entertainment and recreation.
However, it wasn’t until around the seventeenth century that the odds as we know them today started to become more standardised.
The UK fractional odds format, which is still in use today in the United Kingdom, was one of the earliest odds format systems, which displays the amount wagered to the potential payout.
For example, a 7/1 fractional odds bet would pay out seven times the initial stake (+ the initial stake returned.), so if you place a $/€/£1.00 bet with 7/1 odds, and it wins, you will receive a guaranteed payout of $/€/£8.00 (includes $/€/£7.00 profit + £1.00 stake returned).
There are, in fact, three different odds formats used in different parts of the world.
What are the three main odds formats?
As mentioned, the UK fractional odds format is more commonly used in the United Kingdom than in any other region. There are two other common mathematical odds formats used in sports betting today. The three formats include the following:
1. Fractional odds – mainly used in England, Scotland, Wales, and Northern Ireland
2. Decimal odds – mainly used in Africa, Canada (which also uses American/moneyline odds format), Asia, Australia, South/Central America, and many other countries/regions
3. American/moneyline odds – mainly used in the United States of America, but also parts of Canada and some parts of South/Central America
The odds for bettors in South Africa typically appear in the decimal format, which many people argue is the easiest to understand. However, you may not agree with this statement if you are more familiar with the American/moneyline or fractional odds format.
Using the same example above of 7/1 fractional odds, it is the same as saying 8.00 in the decimal odds format and +700 in the American/moneyline odds format. All three mean the same, and in this case, the implied probability rate (IPR) for a betting market with 7/1, 8.00, and +700 odds is 12.50%.
More examples of the different odds formats and how they compare
Here are a few more examples of how the different odds formats compare, including the implied probability rate for each possible outcome. Remember that the higher the IPR, the more likely that outcome will occur (but still never guaranteed). Here are several more examples:
• Fractional odds: 100/1 = 101.00 decimal odds and +10,000 American/moneyline odds. IPR for these odds is only 1.00%
• Fractional odds: 23/20 = 2.15 decimal odds and +115 American/moneyline odds. IPR for these odds is 46.50% (so around a 50/50 chance of occurring)
• Fractional odds: 4/11 = 1.36 decimal odds and -275 American/moneyline odds. IPR for these odds is 73.30% (very likely to occur)
• Fractional odds: 1/100 = 1.01 decimal odds and -10,000 American/moneyline odds. IPR for these odds is 99.99% (all but guaranteed to occur)
The thing to remember about sports betting is that although the odds-on favourites will most likely win, the favourites don’t always win.
For example, sometimes the underdogs/outsiders/least favourites with the worst odds can upset the initial odds and beat the favourites. Therefore, betting on the favourite will not always guarantee a return on your initial stake.
This is why it’s always best to research an event as much as possible before placing a wager on that particular event. Gather as many statistics and relevant data as possible to help you place more informed bets.
Final thoughts
To place more strategic bets, it also helps to stick to betting on legally permitted sites like 10bet, especially if you live in South Africa, and to gamble responsibly at all times.
This site is known for having some of the iGaming industry’s most highly competitive odds and thousands of monthly betting markets for almost every major professional sport in the world.
It’s free to join, but you must be at least 18 years old to register an account on this trusted online sports betting and casino website.
