# How Canadian bookmakers set odds

Sports betting is impossible without the ability to understand odds. Understanding how quebec sports betting odds are calculated is important for both bettors and operators. Bookmakers can evaluate the odds provided by their data providers and better meet the needs of the audience, and bettors can interpret the outcome of their bets.

At first glance, the table of events seems complicated, and the coefficients are incomprehensible, but this is a delusion. Using real examples, our practical manual will show you what odds are in sports betting, how bookmakers calculate them, and what types of odds exist.

## WHAT IS ODDS IN SPORTS BETTING?

Before talking about odds, it is important to introduce the concept of “probability”, because it is on it that betting odds are built. Probability in sports betting is the possibility of one of the outcomes occurring.

In order to accurately calculate the probability of each outcome, the bookmaker conducts a deep analysis of the statistics of specific teams, individual players, rivals, and so on. If the bookmaker does not calculate the probability on its own, choosing a reliable sports data provider is an important step in the development of the sportsbook.

Now that we have determined the probability, we can return to the odds. Betting odds (kef) is the probability of an event outcome, which is expressed in monetary terms and includes the operator’s margin. The term “event” in this context refers to sports events (matches, games, etc.) on which players place bets.

In essence, the coefficient reflects the probability that an event will occur. The simplest example of probability involves a coin toss: heads or tails, the odds of getting one of the images is 50/50. To translate this percentage probability into decimal odds, you need to divide 100% by the probability of the outcome, which in our case with a coin is 100% / 50% = 2.0.

No matter how the odds are written, their meaning is always the same: the odd shows how much the player will receive if the outcome wins. The different display is explained only by the habit of players in some regions to perceive odds in a certain way. Below we take a closer look at each type of coefficients.

The popularity of sports directly depends on the location that we are considering, each country has its own characteristics. In the UK, horse racing is preferred, while in India, cricket is more often bet on. Football, hockey, table tennis, volleyball and the relatively new but rapidly growing esports consistently rank at the top of the list in all regions.

Let’s see how the bet odds are calculated and what factors should be taken into account.

## HOW BOOKMAKER ODDS WORK

Betting odds are determined by two main factors: the probability of an event and the margin. With the first factor, everything is clear: the coefficients are inversely related to the probability. In other words, the higher the probability of an outcome, the lower the odds.

In sports competitions, there is usually a favorite (leader) and an underdog (less popular opponent). When the favorite meets the underdog, the odds of the first are always lower, while the odds for the underdog are higher.

As the event develops, the values of the odds also change. If the probability of an event increases, bookmakers lower the odds. Anything can affect the outcome: bad weather on game day, an injury to one of the top players, a change in coach, and so on.

The most important reason for changing betting odds remains the opinion of the audience: if during a match players actively choose one outcome and ignore the second, then the bookmaker will most likely reduce the odds for a popular outcome and increase the odds for a less popular one.

Consider an example from eSports. Vitality plays against Astralis; the odds for the victory of Astralis is 2.57, for the victory of Vitality – 1.47.

Winner 1. Vitality defeats Astralis 2. Astralis defeats Vitality

1.Vitality

2. Astralis 1.47 2.57

Vitality is the favorite as the team defeated Astralis at Majors 2021, CS:GO’s premier competition. The bookmakers will adjust the odds if, for example, the Astralis team takes revenge and wins the map.

Margin is the bookmaker’s net income, which does not depend on whether the player wins or loses. The percentage of the bookmaker’s profit is already included in all odds for each outcome and event.

Going back to the coin example, the odds for heads and tails are 2.00 without margin. If the bookmaker decides to bet, for example, 5% margin on each selection, then the final odds will look like this: 2 / 1.05 = 1.9.

Below is a simplified margin calculation formula. To calculate more outcomes (for example, three: Team 1 wins, Team 2 wins, and draws), simply add a third term in parentheses.

How betting odds work

In the esports example, the bookmaker’s margin will be 6.94%.

## TYPES OF BOOKMAKERS OFFICIENTS

The way the odds are displayed does not affect the winnings, however, many countries have their own traditions for determining odds.

The undisputed home of the first sportsbooks was Great Britain, so it makes sense to start with it.

British odds, also known as fractional odds or ratio ratios, are displayed as fractions. The left or top part of the fraction (numerator) determines the winning units, and the right or bottom part (denominator) determines the units of bets that must be made to receive the winnings.

For example, consider the football match between Bayern and Stuttgart:

Winner 1. Bayern beat Stuttgart 2. Stuttgart beat Bayern Draw

1. FC Bayern Munich

2. Stuttgart 9/31 62/7 26/5

The betting odds show who is the underdog in this meeting: the odds for Stuttgart to win are much higher, according to analysts, they are lagging behind. The odds for Bayern to win are lower, which means that the team’s chances of winning the match are higher.

Let’s break down the coefficients and clarify what the numerator and denominator mean in each case:

9/31 – for every 31 GBP bet, the player receives 9 GBP of net winnings.

62/7 – for every 7 GBP bet, the player receives 62 GBP of net winnings.

26/5 – for every 5 GBP bet, the player receives 26 GBP of net winnings.

If the player bets 100 GBP on a draw, then if successful, the winnings will be 100 x (26/5) = 520 GBP net winnings + 100 GBP bet. The total winnings will be 620 GBP.

## American odds

This type of betting odds is common in the United States. American (moneyline) odds work in the same way as any betting odds: they reflect the probability of an outcome and show the potential winnings.

By looking at the moneyline, bettors can quickly figure out who is in the lead and who is behind. The leader’s coefficient is denoted by the “-” sign, the outsider’s coefficient – by the “+” symbol.

A positive odd shows the potential win for every 100 USD bet. A negative odd works in the opposite way: it shows how much a player has to bet to win 100 USD.

Consider hockey. For the match between Vegas Golden Knights and Boston Bruins, the bookmaker offers the following odds (we do not take into account a draw):

Winner 1. Vegas beats Boston 2. Boston beats Vegas

1. Vegas Golden Knights

2. Boston Bruins +115 -140

There are two options:

If the player bets $100 on the first selection and Vegas actually wins, the total win is $215 ($115 net winnings + $100 original bet).

If a player predicts Boston to win and bets $140 on it, his potential profit is $100 + the original bet of $140, which equals $240.

## European odds

European (decimal) odds came about when sports betting spread from the UK to neighboring France and took over Western Europe at a furious pace. Despite the fact that British bookmakers remained very popular, new gambling establishments made them good competition.

The British odds system seemed too complicated for many, and as a result the European odds system was born. Traditionally, European odds are written as a decimal fraction: 6.1; 4.7 and so on.

Let’s take a darts example: Ricky Evans vs. Nitin Kumar.

Winner 1. Evans defeats Kumar 2. Kumar defeats Evans

1. Ricky Evans

2. Nitin Kumar 1.06 8.6

A player who bets 100 EUR on Evans’ clear favorite will win 100 EUR x 1.06 = 106 EUR, with a net win of 6 EUR.

The player can risk and bet 100 EUR on Kumar’s win. In case of a successful outcome, the player will receive 100 EUR x 8.6 = 860 EUR, where 760 EUR is the net winnings.

## Hong Kong odds

As the name suggests, this type of betting odds is the most popular in Hong Kong. However, many bookmakers offer it in other countries as well, as bettors easily read this type of odds.

How do Hong Kong odds work? They are similar to the previous European format in that they are displayed in decimal form. But there is a significant difference: the Hong Kong odds show the net winnings that the player can expect if the bet wins.

Tennis example: Elsa Jaquemo is dating Caroline Garcia.

Winner 1. Jaquemo beats Garcia 2. Garcia beats Jaquemo

1. Elsa Jaquemot

2. Carolina Garcia 1.48 1.53

If the player chooses to bet HKD 100 on the first player, his potential winnings will be HKD 100 x 1.48 = HKD 148, for a total of HKD 248.

In the case of a bet of 100 HKD on the opponent’s win, the net profit will be 100 HKD x 1.53 = 152 HKD. The total amount will be 252 HKD.

## Indonesian odds

Indonesian odds look the same as standard decimal odds. But this type takes inspiration from the American format, as it has a positive (“+”) or negative (“-“) value.

If the coefficient is displayed with a “+” sign, then it shows the net profit at a bet of 1 USD. The same applies to American odds, with the only difference that the Americans determine the yield from 100 USD, and the Indonesians – from 1 USD.

If the player sees “-”, then he can understand how much he needs to bet in order to make a profit of 1 USD.

UFC example: Sijara Jihan Eubanks and Melissa Gatto.

Winner 1. Eubanks defeats Gatto 2. Gatto defeats Eubanks

1. Sijara Jihan Eubanks

2. Melissa Gatto -1.5 +1.1

For example, a player bets 100 IDR on the first MMA fighter. If the bet wins, he will receive a net profit of -(100 IDR / (-1.5)) = 67 IDR. If the player chooses the 2nd outcome and risks a bet of 100 IDR, he can receive 100 IDR x 1.1 = 110 IDR net profit.

## Malay odds

Unlike Indonesia, the Malayan system works as a mirror of the American model. Bookmakers define odds with a minus or plus sign and present them as a decimal fraction (for example, -0.29 or +1.0).

The value with a negative sign shows how many currency units you need to bet to win 1 MYR.

Last but not least, from basketball, the game between the Orlando Magic and the Atlanta Hawks (not counting the tie).

Winner 1. Orlando defeats Hawks 2. Hawks defeats Orlando

1 Orlando Magic

2. Atlanta Hawks -0.35 0.36

If players bet 100 MYR on the Orlando Magic and the team lives up to expectations, the net winnings will be -(100 MYR / (-0.35)) = 285.7 MYR.

If you bet the same amount on the opponent’s victory, and the prediction comes true, the net winnings will be 100 MYR x 0.36 = 36 MYR.

## SPORT Odds: RULES TO REMEMBER

If you form a clear understanding of the principles of operation of the classic types of odds, no other types of difficulties will cause, the idea is the same everywhere. Therefore, we propose to summarize the main differences underlying the different types of odds in the last table.

Odds type Format How to calculate winnings?

British Fraction Ratio The numerator shows the winnings, the denominator shows the amount of the bet

American Integer with ‘+’ or ‘-‘ To calculate the potential win at a negative odds, you need to divide 100 by the odds, then multiply the result by the amount of the bet.

To calculate the potential winnings at a positive odds, divide the odds by 100 and multiply the result by the bet amount.

European Decimal To determine the total win, multiply the bet by the odds.

Hong Kong Decimal To determine the total win, multiply the bet by the odds and add the bet amount.

Indonesian Decimal For “-” (negative) odds: to find out the total win, divide the bet amount by the odds and add the bet amount.

As for the “+” (positive) odds: to determine the total win, multiply the bet amount by the odds.

Malaysian Decimal The bet multiplied by the odds is the net win when betting on the underdog.

The bet divided by the odds is the net win when betting on the favorite.

## CHOOSE FROM MULTIPLE RATES

It is not difficult to master the skills of reading coefficients. If you master the classic mathematical models of decimal odds, ratios, and integers, it’s easy to see how all other types simply reflect them with slight differences.

Although the types of odds do not directly affect the winnings, they do affect the experience of the player: a successful sportsbook offers a variety of betting options in order to satisfy any preferences of the players and offer the best options to the audience.