How do betting odds work?
New to sports betting and staring at a wall of numbers?
This guide breaks odds down to the basics: what they mean, how to read them fast, how to calculate your payout, and how to turn those numbers into useful signals.
We’ll cover the three main odds formats you’ll see at LeoVegas Canada, show how they convert to implied probability, and give you a quick reference sheet you can use on the fly.
No tables. No fluff. Just the essentials a regular punter needs.
Learning The Basics - What Are Odds?
Odds are the price of an outcome.
One number, shown in different formats, tells you two things at the same time: how much you’d be paid if your bet wins, and how likely that outcome is judged to be.
When the odds are short, the outcome is considered more likely, and your return per dollar is smaller. When the odds are long, the outcome is considered less likely, and your return per dollar is bigger.
Different formats (Decimal, American, Fractional) are just different ways of writing the same idea, so you can pick the one that’s easiest to read. If you remember nothing else, remember this: odds = payout and probability in a single glance.
Understanding Key Terms Associated With Odds
Before you place a bet, there will be core terms you’ll likely see around the site, many of which may leave you scratching your head, wondering what they mean. Learn them once, and understanding odds will become second nature:
- Stake: The amount of money you risk on a bet. It’s what you put in up front, and it’s always returned to you on top of any winnings when a straight bet wins.
- Payout: The total amount you get back on a winning bet: your original stake plus any profit. When comparing odds, the payout shows the full return, not just the gain.
- Profit: Your winnings, excluding the stake. It’s simply payout minus stake. Odds tell you how large that profit could be for every dollar wagered.
- The Favourite: The selection the market rates as more likely to win, reflected by shorter odds.
- Short Odds: Prices that imply a higher chance of the event happening and therefore a smaller return relative to your stake. Useful when you believe the market is right and you’re prioritising likelihood over a big payout.
- The Underdog: The less-fancied side, shown with longer odds. Longer prices pay more per dollar because the outcome is considered less likely.
- Long Odds: Prices that imply a lower chance and a larger potential return. Attractive when you think the market is underrating an outcome, but the hit rate will be lower.
- Even Money (Evens): The breakeven reference point across formats. A true 1:1 price. Decimal 2.00, American +100, and fractional 1/1 all mean a winning $10 stake returns $20 total ($10 profit).
- Odds Format: The display style for prices. Decimal shows total return per $1 staked. American uses plus/minus to show favourites and underdogs. Fractional shows profit relative to stake. Same bet, three ways to write it.
- Implied Probability: The chance suggested by the odds. Lower decimal numbers, more negative American prices, or smaller fractions all indicate a higher implied chance. Converting odds to implied probability helps you judge whether a price feels fair.
- Line Movement: A shift in odds caused by new information or betting pressure. Injuries, weather, goalie or QB news, or a surge of action can all move a line, which is the market updating its view of the chance.
- Push/Void: When your bet can't be completed, or the outcome ties in a way where you or the sportsbook doesn't win. In this situation, your stake is usually returned to you.
Three Main Types Of Odds
There are three ways you’ll see odds written. They all say the same thing: how likely something is and how much you’d get paid, just in different formats.
Here’s the friendly, no-maths headache version, with simple examples and quick payout checks. Then you can pick the format you find easiest to read going forward:
American Odds
American odds use plus and minus signs. Minus means favourite. It tells you how much you’d need to stake to win $100 profit. Plus means underdog. It tells you how much profit you’d win from a $100 stake.
Let's show how it works in NFL betting, where the Buffalo Bills are listed at -150 vs the Miami Dolphins at +140.
- If you stake $10 on Buffalo -150, you’d win about $6.67 in profit and get $16.67 back in total.
- If you stake $10 on Miami +140, you’d win $14 profit and get $24 back in total.
That’s all you need: minus = safer pick, smaller return; plus = riskier pick, bigger return.
Decimal Odds (Most Common On LeoVegas CA)
Decimal is the cleanest to read because it shows your total return per dollar.
For this one, let's use an NHL betting example: Toronto Maple Leafs at 1.85 vs Montréal Canadiens at 2.30.
- $10 on Toronto 1.85 returns $18.50 total ($8.50 profit).
- $10 on Montréal 2.30 returns $23.00 total ($13.00 profit).
Quick rule: stake × decimal = payout. Done. It’s why most Canadian bettors prefer it, fast and clear.
Fractional Odds
Fractions are more popular in Europe, especially in the UK. They essentially display the profit-to-stake ratio. Think A to B.
Since it's a more popular format in the UK, we'll use a Premier League betting example for this one, where Liverpool are placed at 4/5 to win vs Crystal Palace, who are 3/1.
- $10 on Liverpool 4/5 wins $8 profit and returns $18 total.
- $10 on the opponent 3/1 wins $30 profit and returns $40 total.
A fraction under 1/1 (like 4/5) usually means favourite; over 1/1 (like 3/1) usually means underdog.
Implied Odds And Reading Between The Lines
Implied odds are the market’s way of saying, "Here’s how often we think this will happen".
With decimal prices, lower numbers mean a higher implied chance; higher numbers mean a lower implied chance. A few anchors help: 2.00 is roughly a 50-50 shot (even money), 1.50 is roughly two-in-three, 3.00 is roughly one-in-three, and 4.00 is about one-in-four.
You don’t need to crunch anything on paper; just remember that as the decimal price drops, the implied chance goes up.
Reading between the lines is where bettors turn prices into decisions.
If a team is 1.80, the market is saying "slightly better than even money". If you genuinely believe they win this matchup more often than that rough signal suggests, the price might be worth a look. If you think they win less often, the price is probably too short and not worth taking a risk.
Finding value is about comparing your view to the market’s view.
Start simple:
- Know your anchors: Even money is 2.00. If you see 1.67, think "strong favourite". If you see 2.50, think "underdog with a puncher’s chance".
- Track small differences: 1.85 versus 1.80 looks tiny, but over time, that gap adds up in your results.
- Watch for moves: A drift from 1.90 to 2.05 hints at changing information or betting pressure. Ask yourself what’s changed. Injuries, lineup news, travel spots, or weather? Then question whether the new price now matches (or misprices) reality.
- Matchup context matters: In hockey, a goalie change can shift the true chance; in football, a star QB or left tackle being out changes everything. Prices move for a reason; use that reason to check if the new number is fair or an overreaction.
Reference Sheet
Bookmark this section. It’s a quick, no-tables cheat sheet you can scan before placing a bet. It covers how to read signs and formats, how payouts work, and a few "sanity checks" so you don’t mix up profit and payout or favourites and underdogs.
What Do “+” And “-” Mean?
- - (negative) = favourite: The number shows how much you must stake to profit $100.
- + (positive) = underdog: The number shows how much you profit from a $100 stake.
How To Calculate Payouts
Decimal Odds
Multiply your stake by the decimal price; that’s your total back. Subtract your stake to see the profit.
American Odds
- Minus odds (favourite): think “stake this to win $100,” then scale up or down.
- Plus odds (underdog): think “$100 wins this much,” then scale up or down
Fractional Odds
Read it as "profit to stake". A/B means you win A for every B you stake; add your stake for the total back.
Quick Examples (Stake $10)
- -150: payout $16.67; profit $6.67
- +130: payout $23.00; profit $13.00;
- 1.85: payout $18.50; profit $8.50
- 4/5: payout $18.00; profit $8.00
- 3/1: payout $40.00; profit $30.00
Favourite Or Underdog At A Glance
- Decimal below 2.00 ≈ favourite; above 2.00 ≈ underdog
- American negative = favourite; positive = underdog
- Fractional below 1/1 (like 4/5) = favourite; above 1/1 (like 3/1) = underdog
Understanding Line Movement
If Decimal drops (for example, 2.10 to 1.95), the market thinks the chance has gone up. If it drifts up (for example, 1.80 to 2.05), the market thinks the chance went down.
Parlay Snapshot
With decimal odds, the combined price roughly multiplies (for example, 1.80 × 1.90 ≈ 3.42).
The bigger the combined price, the bigger the potential payout, and the lower the overall chance.
Common Pitfalls To Avoid
Don’t confuse payout with profit: payout includes your stake, profit doesn’t.
Check your odds format in settings so you’re reading prices the way you expect.
A push/void usually returns your stake on spreads/totals that land exactly on the number.
Betting Responsibly
Sports betting should feel like entertainment, not pressure. A simple plan, a clear budget, and a calm head go a long way. Here’s how to keep control:
Use odds as a way to understand risk: Odds are a shorthand for chance and payout.
Lower Decimal odds like 1.50 suggest a higher chance but smaller returns; higher prices like 3.00 suggest a lower chance and bigger swings.
Let that guide your stake size and expectations. Shorter prices usually mean steadier results; longer prices mean more volatility. If a loss would frustrate you into upping the stakes, choose a safer price or skip the bet.
Make use of safer gambling tools to set limits when betting: Set deposit limits, loss limits, and session reminders before you play. They put rails on your spending and time so decisions don’t drift in the heat of the moment.
Time-outs and self-exclusion are there if you need a longer break. Limits help you stick to a plan, which matters more than any single result. Discover LeoSafePlay tools to set limits around your play at LeoVegas.
Avoid chasing losses: Chasing is when you raise stakes or fire off extra bets to win back what just slipped away.
It’s emotional, not logical, and it usually makes a bad day worse. Set a stop-loss for the day, and if you hit it, step away. Don’t redeposit to "get even", don’t double stakes after a loss, and don’t bet when tired, stressed, or tilted.
Ensure you understand how odds work before you stake: Know the basics from this guide: the difference between payout and profit, how Decimal odds map to chance, and why prices move.
Check your odds format in settings so you’re reading lines the way you expect. Start with small stakes and simple markets (singles) before trying multis. If a price or market doesn’t make sense, don’t bet on it; learn it first.
Keep it simple, set your limits, and treat odds as a tool for judging risk.
Learn more about sports betting in our guides