Decimal odds
Decimal odds is a format used to display betting odds. The potential return of a given bet relative to the risk is indicated by a decimal number. Decimal odds are most commonly used in Europe, Canada, and Australia.
How Decimal Odds Work
The betting odds will be displayed as a decimal number. Multiplying the initial risk by the decimal odds will calculate to the total return (which includes both risk and profit). In the example below the Montreal Canadiens have 1.66 odds on the moneyline. A bet of $200 on Montreal to win the match would have a potential return of $332 for a profit of $132. This is calculated by multiplying the decimal odds (1.66) by the initial risk ($200). The more favored a given betting market is the smaller the decimal odds will be.
Team | Puck Line | Total | Moneyline | |
Montreal Canadiens | -1.5 (2.70) | Over 6.5 (1.91) | 1.66 | |
Toronto Maple Leafs | +1.5 (1.50) | Under 6.5 (1.91) | 2.30 |
Consequently the less favored a betting market is the larger the decimal odds. A wager on the Montreal Canadiens puck line has odds of 2.70. This bet is less likely to win as they would be required to win by 2 or more goals. The same $200 risk would now yield a $540 return for a profit of $340. The following table features some sample decimal odds and the calculations required to determine return and profit for a fixed $100 risk:
Decimal Odds | Risk | Return Calculation | Profit Calculation |
1.20 | $100 | $100 x 1.20 = $120 | $120 - $100 = $20 |
1.50 | $100 | $100 x 1.50 = $150 | $150 - $100 = $50 |
1.91 | $100 | $100 x 1.91 = $191 | $191 - $100 = $91 |
2.00 | $100 | $100 x 2.00 = $200 | $200 - $100 = $100 |
2.10 | $100 | $100 x 2.10 = $210 | $210 - $100 = $110 |
2.50 | $100 | $100 x 2.50 = $250 | $250 - $100 = $150 |
3.00 | $100 | $100 x 3.00 = $300 | $300 - $100 = $200 |
5.00 | $100 | $100 x 5.00 = $500 | $500 - $100 = $400 |
A wager with a 1-to-1 return would have 2.00 odds as a $100 risk would yield a $200 return and $100 profit. However due to bookmaker commission two sides of a market with equal odds will each be set between 1.85 and 1.91. This is the house's advantage that needs to be overcome in order to generate a long-term profit.