Bookmakers need a large amount of capital to be profitable. Therefore, they take care to adjust the odds to the odds at which they are going to make a sure profit.
This is not always true, so it is important to be vigilant. The data on the platform is important, but not always accurate.
How Momios Work, Example
- After making all the statistics and predictions for a match, the following results:
- Team 1 has 30% chance of winning.
- Team 2 has a 60% chance of winning.
- There is a 10% chance of a draw.
All this adds up to 100%, but this establishes that the bookmaker would neither win nor lose money. So, in order to make a profit, bookmakers calculate odds on bets where the odds are different.
In this case, team 1 has a 37.4% chance of winning. Team 2 has a 59% chance of winning and there is an 11.6% chance of a draw.
Thus, you have 108% of which the bookmaker will make a profit of 8%. This odds system is known as the European odds system, showing the odds as ratios and results from this:
- 59% = 1.85
- 37.4% = 3.09
- 11,6% = 4.63
Thus, the bookmaker pays the betting amount multiplied by 1.85, 3.9 or 4.63, depending on the outcome of the game. This shows that the potential winnings are similar for any of the 3 betting options.
This is because they calculate the odds on the bets and modify them to make a profit on any possible outcome. To do this, bookmakers use crowd-sourced opinion, preventing bettors from only having recourse to a single outcome.
This lowers the risks for everyone and allows betting to be carried out with clear objectives. The balance of the odds also means that bookmakers make a profit on every bet in a conscious way.
This whole strategy makes customers play again and again, reiterating that bookmakers never lose. This is not to say that customers or users always win, because in that case you never know.
Ways in which betting odds are calculated
American or Moneyline odds
This format is mostly used in the United States, in which a positive and a negative number is shown. The positive number expresses how much the winning bet will win, but the negative number shows what is needed to win.
This odds is mostly used in Europe, Australia and Canada, and is well known throughout the world. It is used as standard in all bookmakers around the world, except for the United States.
This is because it is known as the simplest format and is expressed in a positive way. The main figure will always be followed by its decimal places, being characteristic of the calculation.
When Calculating Betting Odds with this process, everything is simpler. The decimal odds number shows the total payout amount of the winning bet.
Although the above format is the most commonly used, this range of odds is widely used in the UK. With this system you can find out how much potential profit you can make on a bet.
In order to make the calculation, the odds calculators add the original bet. Thus, the odds are displayed in the form of fractions for easier understanding and handling.
Most of the time, whenever the first number is higher than the second, you have “odds against”. In case you need to convert fractional odds to decimal odds, follow the example below:
- 5/2 = 2,5 + 1 = 3,5
- 7/4 = 1,75 + 1 = 2,75
All these formats are used by odds calculators in betting, resulting in a previous analysis. In this way bettors know what their profit or loss will be depending on the amount of money wagered.