Betting Odds Explained: Beginners Guide on How to Understand Betting Odds

Understanding how betting odds work is crucial if you want to make informed decisions while betting. Taking the time to learn the details of betting odds can significantly improve your betting experience.

Betting odds represent the likelihood of a particular outcome according to the bookmakers. They also indicate how much you stand to gain if your bet is successful.

If you're new to betting, odds can seem confusing at first. That's why we've put together this comprehensive guide to help you understand betting odds better.

What are betting odds?

Betting odds are used by bookmakers to represent the likelihood of an event occurring.

They also show how much you can potentially win if you bet on a particular market.

Low odds mean the outcome is more likely to happen according to the bookmaker, while high odds suggest the outcome is less likely.

In Ghana, you’ll often encounter odds displayed in either decimal or fractional formats, similar to those used internationally.

What is probability?

Probability is the measure of how likely or unlikely an outcome is to occur. If an outcome has a low probability, it’s less likely to happen, while a high probability means it’s more likely.

For instance, if you had to pick a number between 1-10 and someone guessed your number, there’s a 10% chance they’d get it right since there are 10 possible numbers.

However, if the guess was whether the number is odd or even, there’s a 50% chance of getting it right since there are only two options.

Bookmakers use probability to set their odds, influencing the price of each market.

How to use odds to calculate probability

You can calculate the probability of an outcome happening based on the odds. This helps you understand how likely an outcome is to occur.

Fractional odds are common in Ghana, much like in other markets.

The formula for calculating probability is: Probability (%) = B / (A+B). Let’s break it down with examples:

• 9/1 becomes 1 / (9+1) = 0.10 - There’s a 10% chance this will happen.
• 4/1 becomes 1 / (4+1) = 0.20 - There’s a 20% chance this will happen.
• 1/1 becomes 1 / (1+1) = 0.50 - There’s a 50% chance this will happen.
• 1/4 becomes 3 / (1+3) = 0.75 - There’s a 75% chance this will happen.

Decimal odds are also used in Ghana, and they are easier to understand:

• 10.00 becomes (10 / 10) / 10 = 0.1 - There’s a 10% chance this will happen.
• 5.00 becomes (10 / 5) / 10 = 0.2 - There’s a 20% chance this will happen.
• 2.00 becomes (10 / 2) / 10 = 0.5 - There’s a 50% chance this will happen.
• 1.25 becomes (10 / 1.25) / 10 = 0.8 - There’s an 80% chance this will happen.

How to read betting odds

You can use odds to calculate your potential profits from a successful bet, whether using fractional or decimal odds.

For fractional odds, if the odds are displayed as a top-heavy fraction like 10/1, it’s an ‘odds against’ bet, meaning it’s less likely to happen.

If the odds are shown as a bottom-heavy fraction like 1/2, it’s an ‘odds on’ bet, meaning it’s more likely to happen.

With fractional odds, your potential winnings are calculated by using the numbers in the fraction. The first number indicates your profit for a stake equal to the second number.

For example:

• At odds of 10/1, a GHS 1 stake = GHS 10 in profit + GHS 1 stake = GHS 11 returned.
• At odds of 5/2, a GHS 2 stake = GHS 5.00 profit + GHS 2 stake = GHS 7 returned.
• At odds of 1/2, a GHS 1 stake = GHS 0.50 profit + GHS 1 stake = GHS 1.50 returned.

Decimal odds are straightforward: just multiply the odds by your stake to find your winnings.

For example:

• At odds of 11.00, a GHS 1 stake = GHS 11 returned (11 x 1).
• At odds of 2.50, a GHS 2 stake = GHS 5.00 returned (2.5 x 2).
• At odds of 1.50, a GHS 1 stake = GHS 1.50 returned (1.5 x 1).

How do fractional odds work?

Fractional odds are popular in Ghana, much like in other countries. They show how much you can win based on a certain stake.

The numerator of the fraction shows the profit you’ll make if you stake the denominator. To find out the total return, simply add your stake to the profit.

For instance, a bet with odds of 7/2 will return GHS 4.50 from a GHS 1 stake (7/2 x GHS 1 = GHS 3.5), plus your GHS 1 stake.

Fractional odds also indicate probability: top-heavy fractions are less likely to occur, while bottom-heavy fractions are more likely.

A bet with 9/1 odds has a 10% chance of occurring, while a bet with 1/2 odds has a 50% chance.

How do decimal odds work?

Decimal odds are less common but easier to understand. The number shows the total amount your bet will return for every GHS 1 staked, including the probability of the outcome occurring.

To calculate your returns, multiply your stake by the decimal odds. For example, if you stake GHS 1 on a bet with odds of 5.00, you’ll receive GHS 5 in return.

If the odds are above 2.0, it’s an ‘odds against’ bet. If they’re below 2.0, it’s an ‘odds on’ bet.

How do American odds work?

American odds are available with some bookmakers in Ghana but aren’t commonly used. They’re displayed with a + or - sign to indicate whether the bet is odds against or odds on.

For example, if Hearts of Oak are +250 to win a match, they’re considered underdogs, while their opponents at -170 are the favorites.

+250 odds mean that for every GHS 100 staked, you’ll make GHS 250 profit, returning GHS 350 total (including your GHS 100 stake).

Odds of -170 show how much you need to stake to win GHS 100, requiring a GHS 170 bet to return GHS 270 total (including your GHS 170 stake).

How odds work: Summary

That's our complete guide to understanding betting odds and how they function. This knowledge will help you make more informed betting decisions.

Now that you’re ready to start betting, check out our guides to the best betting sites in Ghana and the top welcome offers available right now.