Odds

Definition:

In sports betting, odds are the numerical representation of the probability of an outcome happening, and they determine how much you win if your bet is correct.

They serve two main purposes:

1. Show likelihood (probability): Higher odds = less likely event. Lower odds = more likely event.

2. Set payouts (risk vs reward): Odds tell you how much profit you’d get relative to your bet size.

Real-World Example

• NFL Game: Kansas City Chiefs vs. Las Vegas Raiders

  • Chiefs are –120 favorites (slightly favored).

    • You’d need to bet $120 to profit $100 if the Chiefs win.

  • Raiders are +180 underdogs (less likely to win).

    • A $100 bet on the Raiders would profit $180 if they pull the upset.