Sports Betting 101

Odds
What are handicaps?

What makes sports betting so attractive to people? In sports, we can bet on various things - horse racing, cricket, football, snooker and rugby to name a few. Is it the lure of easy money, or is it the challenge of having to outsmart others with a combination of intelligence and luck? And while gambling is illegal in many countries due to its addictive nature, placing a bet randomly without doing prior research is sheer foolishness and you will only dig your own grave.

For example, a fan who has a basic knowledge of football would tip Arsenal to win when they play Bolton Wanderers at the Reebok. But dig a little deeper, and you will see that Bolton have a good record against the Gunners at home, even if they have been playing mediocre football against other teams. If Bolton end up winning, the fan gets a shock of his life, as he never expected the in form team to lose. Thus, one needs to place an educated bet by looking at the past history, climatic conditions, players missing out due to injury or suspension, and even the referee. Instinct does play a part, as it does with everything in our lives.

Greece was rank outsider for winning Euro 2004, but the man who took a gamble with them would be floating in money after their shock win. But you shouldn't rely on instinct alone to win. Your sixth sense must be used sparingly, and as a surprise weapon.

Let us look at some of the basic things that you should know before attempting online sport betting. Examples here are all from football/soccer. The concept remains the same across all sports, only the terms change. If you would be betting on X to score a goal in a football game, cricket would see you placing money on Y to score a century.

There are plenty of bookmakers in the market today. If you want to bet, you will need to open an account with the bookmaker of your choice and deposit funds in it. Some sites offer a promotional bonus on signing up. Transaction fees and methods of withdrawal and payment may differ from bookmaker to bookmaker. Choose your bookmaker after doing thorough background research, and make sure that you read all the terms and conditions before deciding to click on the agree button.

Odds

Odds are given by bookmakers to determine the possible earnings from a game. Lower odds generally mean that the team has excellent chances of winning, while higher odds indicate that the team is most likely to end up on the losing side. If United were quoted at 3/1 to win the Premiership and the corresponding figure for Watford was 250/1, then it is clear that while United are expected to bag the title, Watford are not. Depending on the market that they are targeting, odds may be expressed in American, UK or European standards.

European odds are expressed in decimal form. The odds, multiplied by the stake, give your payout. For example if Aston Villa has Euro odds of 4.00 on them to win against Manchester United and your stake is $100, your payout is $400. In the British fraction form, for the same event, Aston Villa would have odds of 3/1. UK odds multiplied by your stake give your winnings. So if the Villains do beat the Red Devils, your winnings are $300. The US odds for an Aston Villa win in the same case would be + 300.

Your payout in the US form would be as follows:

Stake x ( 1 + US Odds/ 100) = 100 x ( 1 + 300/100) = $ 400.

If Villa were quoted at 4/5 for a win, then their Euro odds would be 1.80, and the US odds would be - 80. The negative odds tell you how big a stake you need to win 100 units.

Your payout in the US form using negative odds would be calculated as follows:

Stake x (1 + 100/US Odds) = 100 x (1 + 100/80) = $180. (Ignore the negative sign in the calculation).

Ultimately, the payout and stake in all the three forms are the same.

What are handicaps?

Many a time in sport, you will see a small team taking on a bigger one. To make things more competitive, the smaller teams are given a handicap. For example, let us assume that China is given a handicap of + 0.5 in a game against Brazil. It means that China is given a half goal advantage going into the game. If China wins or draws in the actual game, it is a win for the man who put money on China. The 0.5 handicap ensures that a draw cannot happen, and the game can go only two ways- in favor of China or Brazil. Assuming that China are playing at home, a 0.5 handicap will be represented in the following format:

1/2 : 0

If China was given a handicap of + 1.0 and lost the game 0-1, then the match has ended in a draw. Generally bookmakers offer only the no draw option, popularly known as Asian Handicap betting.