Sports Betting

By Wagercomms

Placing Wagers on Sports

Placing wagers on sports events and predicting results is a long-standing, classic and highly popular form of betting, one where the expansion of Internet has served as an unparalleled channel for both operators and punters in making both pre-bets and in-running bets. Today the market is referred to as mainly Sports Betting but also Betting Exchange, but for the latter please read the document on Betting Exchange, as this article will address Sports Betting on a general understanding.

Sports betting

The classic bookmaker act as a market maker for any sports wagers, most of which are made up of a a team either winning or losing. The bookmaker accepts both wagers, and maintains a spread between odds given to bettors, which will ensure a profit regardless of the outcome of the wagers.

Odds

Odds for the different outcomes in a single bet is commonly given in either the European decimal format, or the UK fractional odds format, or the American moneyline odds format. The European format (decimal odds) are favoured in continental Europe, Canada, and Australia, and they are the ratio of the full payout to the stake, in decimal format. For instance the decimal odds of 2.00 are an even bet. The UK format (fractional odds) are favoured by British bookmakers, and they are the ratio of the amount won to the stake. For instance a fractional odds of 1/1 are an even bet. The US format odds are hence favoured in the United States, and they are the amount won on a 100 stake when positive and the stake needed to win 100 when negative for instance a US odds of 100 are an even bet.

Europe vs. UK vs. US

The following are odds formats used in Europe, UK and US.

Europe                           UK                           US 

1.50                                 1/2                       -200 

2.00                                1/1                        +100

2.50                               3/2                       +150

3.00                               2/1                        +200

Odds Conversions

Converting odds between European (decimal) and UK (fractional) and the US (moneyline) the following conversion formulas applies.

European odds (x) to UK

x-1 , then convert to UK (fractional)

European odds (x) to US

100 times (x-1) if x>=2; -100/(x-1) if x<2 

UK odds (x) to European 

Divide fraction (UK), then x+1

UK odds (x) to US 

Divide fraction, then 100 times x if x>=1; -100/x if x<1 

US odds (x) to European

(x/100)+1 if x>0; (-100/x)+1 if x<0 

US odds (x) to UK 

x/100, then convert to fraction if x>0; -100/x, then convert to fraction if x<0

In Asian betting markets, other common used formats include Hong Kong, Malay, and Indonesian-style odds formats. Odds are also often expressed in terms of the implied probability, which corresponds to the probability with which the event in question would need to occur, for the bet to be a breakeven proposition, on the average.

Types of Bets

Sports bookmakers exist today throughout the world and on the Internet, where thousands of online bookmakers accept wagers on sporting events around the world. Looking at the various and most common betting types there is a few to select from.

Simple Bets

Simple wagers where one places a bet on the outcome of for instance a soccer or basket ball game, which team will win. 

Proposition Bets

These are bets placed on a very specific outcome of a match. For instance predict the number of goals each team scores in a soccer match, betting whether a player will score more goals than another player.

Parlay Bets

Parlay bets involves multiple bets, usually no more than 12, and the payout in hitting all rights are large. For instance, a player could include four different wagers in a four team parlay, whereby he is wagering that all four bets will win. If any of the four bets fails to cover, the bettor loses the parlay, but if all four bets win, the bettor receives a substantially higher payout than if he made the four wagers separately.

Progressive Parlays

As in a regular Parlay bet the Progressive parlay bet involves multiple bets, usually no more than 12, and rewards successful bettors with a large payout, but not as large as normal parlays. However in a progressive parley, unlike a regular parley, some of the bets can lose, and a reduced payout will still be made.

Teasers

Teaser bets allows the bettor to combine his bets on two or more different games. The bettor can adjust the point spreads for the two games, but receives a lower return on the bets in the event of a win.

Run Line, Puck Line, Goal Line

These are wagers offered as alternatives to straight-up/moneyline prices in baseball, hockey or soccer, respectively. These bets feature a fixed point spread that usually offers a higher payout for the favourite and a lower payout for the underdog (both in comparison to the moneyline). For instance a Brewers/Cubs baseball game might offer a run line of Milwaukee -1.5 (+100) and Chicago +1.5 (-120). A bettor taking Milwaukee on the run line can avoid risking $200 to win $100 on the moneyline, but will collect only if the Brewers win by 2 runs or more. Similarly, a run line wager on the Cubs will pay if Chicago loses by no more than a run, but it requires the bettor to risk $120 to win $100. Bettors may also wager on so called alternate run, puck, or goal lines, which offer decreased payouts on the favourite and increased payouts on the underdog. Once again using the Brewers/Cubs baseball game as an example, a sportsbook might offer an alternate run line of Milwaukee +1.5 (-300) and Chicago +1.5 (+270).

Future Wagers

While all sports wagers are by definition on future events, bets listed as "future wagers" generally have a long-term view and are measured in weeks or months. For instance, a bet that a certain NFL team will win the Super Bowl for the upcoming season. Such a bet must be made before the season starts, and winning bets will not pay until the season ends, although many of the losing bets will be clear well before then. Odds for such a bet are generally given in a ratio of units paid to unit wagered. Team wagered upon might be 50-1 to win the Super Bowl, which means that the bet will pay 50 times the amount wagered if the team wins.

Head to Head

In these bets, bettors predict competitors results against each other and not on the overall result of the event. One example are Formula One races, where you bet on two or three drivers and their placement among the others. Sometimes you can also bet on a tie, in which one or both drivers either have the same time, drop out, or get disqualified.

Parimutuel Betting

Parimutuel betting differs from fixed odds betting in that the final payout is not determined until the pool is closed, while in fixed odds betting, the payout is agreed at the time the bet is sold. Hence if the total pool of money on an event is $514.00, following the start of the event, no more wagers are accepted. The event is decided and the winning outcome is determined to be outcome 4, with $55.00 wagered. The payout is now calculated, first the commission or take for the bookmaker is deducted from the pool, for instance with a commission rate of 14.25 percent the calculation is: $514 × (1 - 0.1425) which equals $440.76. The remaining amount in the pool is now distributed to those who wagered on outcome 4, i.e. $440.76 / $55 equals $8.00 per $1.00 wagered. This payout includes the $1.00 wagered plus an additional $7.00 profit. Thus, the odds on outcome 4 are 7 to1, or expressed as decimal odds 8.

The parimutuel system is used in gambling on horse racing, greyhound racing and commonly all sporting events of relatively short duration, in which participants finish in a ranked order.