Betting Odds Explained

Betting odds is one of the most significant aspects of any bookmaker, representing the probability of an event happening. Understanding them will help you in your journey as a bettor.

We gathered the best betting platforms in Tanzania that offer reasonable odds for our readers. We will also analyse these odds, including how to read and calculate probability of odds. Continue to read our betting odds explained to discover how betting odds work.

Betting Odds: What Are They?

Bookmakers display betting odds to show the likelihood of specific sports betting events occurring. While low odds indicate a high possibility of the outcome from such an event happening, high odds indicate a low possibility of that outcome.

Betting odds serve as the basis for calculating your payout when your predictions become successful. In other words, they depict the bookmaker’s way of communicating the probability of your wager.

Let’s illustrate how to read odds. For instance, let’s say a bookmaker provides odds for a Manchester City vs Tottenham Hotspur game, with Man City having 2.60 odds to win and Tottenham having 3.20 odds to win. 

So, if you wager TZS 500 on Manchester City at 2.60 odds, you will receive a total payout of  TZS 1,300 (500 x 2.60) if they win the game. On the other hand, if your stake is on Tottenham and they win, you will receive TZS 1,600 (500×3.20). 

Betting Odds Explained

Odds On vs Odds Against

Odds On and Odds Against are popular terms in sports betting. Odds On bets are the kind of bets whereby the betting sites feel the outcome is likely to occur. Odds Against, on the other hand, are bets on events that are less likely to occur. 

Let’s illustrate how to read Odds On and Odds Against bets. For instance, a 3-way football market with Arsenal FC at 1.30 odds, Sheffield United at 8.50 and Draw at 4.55 odds.

This illustration shows that the bookie thinks Arsenal will win the game, indicating an Odds On bet. In contrast, a wager on Sheffield United or Draw indicates an odds against bets because the outcome is less likely to occur. When you wager on Arsenal, you will realise that your payout will be less than wagering on Sheffield or a Draw.

A bet on an Odds-Against pick is usually risky because they don’t always happen. However, if your predictions are right, the rewards are usually worth it.

The table below highlights the pros and cons of both odds types.

Odds-On Pros and Cons

It is less riskyRequires a significant amount to get a good return on your bet
Outcomes are easily predictableDoesn’t provide as much excitement as you can easily predict the likely winners in a game.
Provides a high winning chance

Odds-Against Pros and Cons

Odds are competitiveIt’s risky
Gives a good return on your wagerOutcomes are difficult to predict
It’s more fun as you get to experience the outcome of an unlikely event occurringThe chances of winning are less

Even Money

There’s also the Even Money bet, which differs from Odds On or Odds Against. They are uncommon as bookies get little returns from it. It’s more like a 50/50 chance bet for players and bookies.

Depending on your preferred odds format, bookies display it differently: +100 for American, 1/1 for Fractional and 2.00 for Decimal. Hence, a wager on the odds of an Even Money bet will return double your stake.

For instance, a TZS 1,000 wager on an event with even odds will return TZS 2,000 if your bet wins. That is your TZS 1,000 stake and TZS 1,000 for winning.

What Are the Different Odds Formats?

Bookies provide odds in different formats. On some betting sites, you will find the odds for the various sporting events in Decimal. On others, the site can display their odds in the Fractional and American format. Some even go as far as providing Percentage and Moneyline Odds. However, the Fractional, American and Decimal odds are the most popular types. 

Interestingly, a betting site may provide odds in all these formats, needing you to switch to the one you prefer the most. Let’s explain all the odd types to better understand how betting odds work.

Fractional Odds

Fractional odds are very popular on UK-themed betting sites. They are mostly used on Horse Racing bets, but bookies also provide them for other sports. As the name suggests, they appear in fractions and are easy to calculate. 

Let’s give an example of how these betting odds work. Assuming you place TZS 100 on a Horse Racing bet with fractional odds of 3/1, you will win TZS 400 if your prediction is correct. That is 100×3 = 300 plus your initial TZS 100 stake, giving you a TZS 400 total payout.

Decimal Odds

Decimal Odds is arguably the most popular odds on African bookies. It’s easy to understand, requiring little or no calculation. It simply indicates your payout on every TZS 1 you stake. 

For instance, if you’re backing a particular team to win at 1.70 odds with a TZS 100 stake. Your total payout will be TZS 170, meaning a TZS 70 winning plus your TZS 100 stake.

American Odds

American Odds, as the name suggests, are popular with USA-themed bookies. It’s easy to read this type of odds as they are denoted with the ‘+’ and ‘-‘ symbols. These betting odds use 100 as the baseline value.

To better understand how it works, let’s use an example. Assuming you’re backing a team with -175 American odds, you must stake TZS 175 to win TZS 100. On the other hand, if you’re backing a team with +350 American odds, you have to stake TZS 100 to win TZS 350.

Moneyline Odds

Moneyline odds are a variation of American odds. It is a 2 or 3-way bet, as the case may be and denoted using the ‘+’ and ‘-‘ symbols. 2-way if the sport provides a Home and Away Win, 3-way, with the third option being a draw.

To understand how the Moneyline odds work, the favourite team carries the ‘-‘ symbol while the underdog carries the ‘+’ symbol. So if a team has a – 125 Moneyline odds indicating they are the favourite, you must stake TZS 125 to win TZS 100. On the other hand, if you’re backing an underdog team with a +360 Moneyline odds, you have to stake TZS 100 to win TZS 360.

Percentage Odds

As the name suggests, percentage odds indicate bookies utilise percentages to represent their odds. They are used to express the implied probability of an event occurring. Hence, your wager is more likely to happen when the percentage is high.

For instance, if you’re backing a team with an 85% percentage odds, they would have (100/85) 1.18 odds. So imagine a bookie offering 1.18 odds; you can easily tell they’re the favourites to win in a contest.

Betting Odds Calculator

To calculate betting odds, bettors can use an online odds calculator. It helps simplify whichever odds format you choose, calculating the payout for your bets. 

You only need to input information like your stake amount, choice of odds format, and the bet type; the calculator does the rest. This will be helpful to bettors, especially the new ones who are yet to understand how to calculate their bets. You will also find an online calculator that can calculate probability in percentages.

How Are Betting Odds Calculated?

As mentioned earlier in this guide, betting odds determine your payout on a bet. The odds reflect the likelihood that a particular outcome will happen. The smaller they are, the more likely your bet wins. However, you must understand that a bet on an event with small odds would provide fewer rewards than the bigger odds, which are less likely to happen.

Let’s give a decent illustration of how betting odds work in sporting events. Think about a game between Real Madrid and Almeria, one of the lowest-ranked teams in Spain. Looking at both teams, you’d expect Real Madrid to prevail over Almeria.

The bookies understand this situation and provide the better team with low odds. Hence, bettors will get less reward for placing bets on Los Blancos compared to betting on Almeria, whose chances of winning are slim.

Calculating betting odds might be challenging for bettors as it involves different variables. However, fully understanding it helps you read various betting scenarios perfectly and make smart betting choices.

For instance, to calculate fractional odds, you can use this simple formula: (Stake โœ– fractional odd) + Stake = Total Payout. You only need to input the necessary variables, and you’re good to go.

Let’s use a horse racing event as an example: we’re backing one of the Horses to win at 8/10 fractional odds with a TZS 100 stake. So, you will have (100 โœ– 8/10) + 100 = TZS 180 total payout.

To calculate decimal odds, use the formula Stake โœ– Odds = Total Payout. Players can do all these using an online calculator. You might as well do the calculation yourself if you wish.

How Are the Implied Probabilities Calculated?

Players can determine implied probability from their various betting odds. In other words, Implied probability tells the possibility of an outcome happening based on the odds offered by a bookmaker.

Like the other odd types, we have various online calculators that can calculate implied probability. However, if you need to solve the math yourself, there are different formulas for the Decimal, Fractional and American odds formats.

Calculating the implied probability for the Decimal odds is simple: 1/odds multiplied by 100. Let’s use 2.50 odds as an example. So you will have 1รท2.50 =0.4 ร— 100 = 40%.

For Fractional odds, the formula is Denominator รท (Denominator + Enumerator) โœ– 100. Let’s say our odds is 7/3, you will have 3 รท (3+7) โœ– 100 = 3 รท 10 โœ– 100

That is 0.3 x 100 = 30%.

For American Odds, you have to consider their โ€œ+โ€ and โ€œ-โ€ signs. To calculate probability of a betting odds with a โ€œ-โ€ sign, the formula is Odds/ (Odds + 100) โœ– 100. The formula for the one with a โ€œ+โ€ sign is 100/ (Odds + 100) โœ– 100.

So if you have an odd of -175, the calculation goes thus: 175/(175+100) โœ– 100 = {175/275} โœ– 100 = 0.64 โœ– 100 = 64%.

On the other hand, if you have an odd of +350, the calculation goes thus: 100/(350+100) โœ– 100 = {100/450} โœ– 100 = 0.22 โœ– 100 = 22%.

Why Do Odds Change?

You must have noticed a change or shift in the odds a bookie offers during a particular duration. The change in odds happens for various reasons, which allows these betting sites to tilt their odds to how they see the probable outcome of a game. 

What are these factors that cause the odds to change?

New Information

New Information can cause bookies to adjust their betting odds. For instance, when a team announces a recent injury news, a change in the coach’s tactics and lineup, a sudden change in the weather conditions, and so on. All these will influence the outcome of a game, making the bookie adjust their odds based on the new Information.

A betting trend from bettors could also influence a change in betting odds. For instance, if the number of bettors wagering on a specific sporting event is so high, it can cause a shift in odds. Another example is when bettors stake high on a game with a high chance of a return; the bookies might adjust the odds to make it less rewarding for the players.

Bookmaker’s Decision

Odds change may also result from the bookmakers themselves. They do this to balance their books. For instance, if they notice that they stand to lose so much should a specific outcome on a bet happen, they could tamper with the odds to push bettors away from staking on the game.

Where to Bet on Odds?

Betting odds are surely an inseparable part of any bookmaker. However, they differ slightly across websites. We gathered here some of the best betting sites in Tanzania for you to bet on the odds for various sporting events. 

Below are bookies you can sign up with using an optional promo code and gain access to the betting odds for your different selections.

Gal Sport Betting
Premier Bet

Frequently Asked Questions about Odds Betting

To wrap up our betting odds explained guide, our experts answered some of the frequently asked questions about betting odds below.

What happens if you bet on negative odds?

Negative odds are synonymous with the American type of betting odds. It signifies the favourite team, meaning that you have to bet the exact odds value to win TZS100.

Why do bookmakers have different odds?

Sports betting sites usually provide betting odds in different formats to their customers. This way, bettors can easily place bets using the odds they understand the most.

Are betting odds accurate?

Yes. Betting odds have a high level of accuracy. They are a determining factor of how much you get to win, so they ensure accuracy.

Can the odds change after betting?ย 

Yes. Odds change in-game due to the actions happening in the match. For instance, the odds change if there’s a red card in the game or a team already leads by a goal.

Are decimal or fractional odds better in betting?

The odds format to choose depends on what a player prefers. However, they are the most popular betting odds on bookies in Tanzania.

What are good odds?

Good odds are odds that offer better value for your stake. You will usually find this type of odds on events that are less likely to occur. With the correct predictions on them, you can potentially maximise your payout.

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