G’day, punters!
If you’ve ever stared at a betting board or scrolled through a sportsbook app, you’ve seen them: those numbers that tell you who’s favoured to win and what you stand to collect if your pick gets up. But if you’re new to the game, understanding the difference between $2.10, +110, and 11/10 can feel like trying to understand a different language.
Well, stop scratching your head. Here at Top Betting Australia, we believe an informed punter is a successful punter. This fair dinkum guide will break down the three main types of betting odds—Decimal, American, and Fractional—so you can read them, understand them, and use them to your advantage.
Let’s dive in.
Why Understanding Odds is Your First Winning Bet
Before we get into the nitty-gritty, it’s crucial to understand what odds actually represent. At their core, odds are a numerical expression of the probability of a particular outcome occurring. But more importantly for your wallet, they determine how much profit you’ll make from a winning bet.
Bookmakers set these odds based on statistics, form, weather, insider news, and a whole lot of complex maths. Their job is to create a market that attracts bets on all sides. Your job is to spot where the value lies. And it all starts with knowing what those numbers mean.
Decimal Odds: The Aussie & Kiwi Favourite
If you’re betting in Australia or New Zealand, Decimal odds are what you’ll see on the boards at the pub TAB and on most online betting sites. They’re the most straightforward system to understand, which is why they’re so popular here.
How to Recognise Them:
Decimal odds are always a number greater than or equal to 1.00, expressed with two decimal places (e.g., $1.90, $2.50, $4.00).
How They Work:
The number represents the total payout you will receive for every $1 you bet, including your original stake. This makes calculating your winnings dead easy.
The Formula:
Stake x Odds = Total Payout
Example:
- You bet $20 on the Melbourne Storm at odds of $2.10.
- Your calculation is: $20 (stake) x 2.10 (odds) = $42.
- This $42 is your total return – your original $20 stake plus $22 in profit.
Easy, right? The higher the decimal odds, the less likely the event is to occur, but the bigger your potential payout.
Fractional Odds: The Old-School Tradition
Commonly used in the UK and Ireland, Fractional odds are the classic system you see in movies. They’re still widely used for horse racing and greyhounds here in Australia, especially when you listen to race callers or read the form guide in the paper.
How to Recognise Them:
They are presented as a fraction, like 5/1, 2/5, or 6/4.
How They Work:
The fraction shows you your potential profit relative to your stake. The number on the left (numerator) is how much you win. The number on the right (denominator) is what you need to stake to win that amount.
The Formula:
(Stake x Numerator) / Denominator = Profit
Then add your stake to get the total payout.
Example:
- You bet $10 on a horse at odds of 5/1.
- Your profit is: ($10 x 5) / 1 = $50 profit.
- Your total payout would be your $50 profit + your $10 stake = $60.
Another example with shorter odds:
- You bet $15 on a favourite at odds of 1/4 (pronounced “four-to-on”).
- Your profit is: ($15 x 1) / 4 = $3.75 profit.
- Total payout = $15 stake + $3.75 profit = $18.75.
Fractional odds tell you the risk versus reward. 5/1 is a “long shot,” while 1/4 is a “short price favourite.”
American Odds: The US Import
Also known as Moneyline odds, this system is the standard in the United States. You’ll see them on US-focused betting sites for sports like NBA, NFL, and MLB. While they look confusing at first, they’re simple once you know the trick.
How to Recognise Them:
American odds are based on a $100 bet and are presented as either a positive or negative number (e.g., +150, -120).
How They Work:
- Negative Odds (-): Indicates the favourite. The number shows how much you need to bet to win $100.
- Positive Odds (+): Indicates the underdog. The number shows how much you would win from a $100 bet.
The Formula for Negative Odds (Favourite):
Stake / (Odds / 100) = Profit
Or, to win $100, you need to bet the amount of the odds.
Example:
- You see odds of -200.
- This means you need to bet $200 to make a $100 profit. Your total payout on a $200 bet would be $300.
The Formula for Positive Odds (Underdog):
Stake x (Odds / 100) = Profit
Or, a $100 bet would win you the amount of the odds.
Example:
- You see odds of +350.
- This means a $100 bet would net you a $350 profit. Your total payout would be $450.
Quick Conversion Cheat Sheet
| Decimal | Fractional | American (Underdog) | American (Favourite) | $10 Bet Profit |
|---|---|---|---|---|
| 1.50 | 1/2 | -200 | +200 | $5.00 |
| 2.00 | 1/1 (Evens) | +100 | -100 | $10.00 |
| 2.50 | 6/4 | +150 | -150 | $15.00 |
| 3.00 | 2/1 | +200 | -200 | $20.00 |
| 4.00 | 3/1 | +300 | -300 | $30.00 |
| 10.00 | 9/1 | +900 | -900 | $90.00 |
The Key Takeaway for Aussie Punters
While it’s handy to understand all three systems, your main focus in Australia will be on Decimal odds. They are the simplest, most transparent system, allowing you to instantly see your exact return without any complicated mental gymnastics.
The ability to quickly glance at a price and know exactly what a $20, $50, or $100 bet will return is a huge advantage. It lets you compare prices across different bookmakers to ensure you’re always getting the best value for your wager.
Remember, the goal isn’t just to pick winners—it’s to find odds that are better than the true probability of an event occurring. That’s where the long-term profit lies.
Ready to Put Your Knowledge to the Test?
Now that you can read the betting board like a seasoned pro, it’s time to find the best markets and the sharpest odds. Top Betting Australia is your home for honest, in-depth reviews of Australia’s leading betting sites.
We’ve done the hard yards for you, comparing welcome offers, odds boosts, live streaming features, and digital cash-out options across all the major players. Whether you’re a Saturday afternoon punter or a serious stats analyst, we’ll help you find the perfect bookmaker to suit your style.
Don’t just bet. Bet smart.
Click here to visit Top Betting Australia and find your edge today!