Are you struggling to get player retention and operating profit because your odds aren’t competitive or flexible enough? As an iGaming operator, balancing player satisfaction with profit is tough when odds management isn’t optimized.
Here is a complete guide on understanding odds in sports betting – all for the operators who want long-term success.
Table of Contents
What are the odds in sports betting?
Odds in sports betting aren’t just numbers – they’re the foundation of every bet on your platform. Essentially, odds are the probability of a specific outcome happening in any sporting event. Whether your player is betting on a Premier League match, NBA Finals, or an Esports tournament, odds tell two things: the likelihood of the outcome and the payout for the player.
In iGaming, odds management is important for:
- Sportsbooks: Display odds for various sports like football, cricket, and MMA, reflecting the competitive nature of the industry.
- In-play betting: As odds change dynamically in real-time, accurate and responsive odd management is key to offering in-play experiences.
- Exchange betting: Operators managing back and lay bets need to balance both odds types to attract both sides.
- Esports betting: The emerging market of esports betting adds complexity, where operators need to calculate odds on games with fewer historical data points.
How are odds in sports betting calculated?
Behind every set of odds is a complex calculation process. As an iGaming operator, you know you need to balance statistical analysis, market demand, and risk management. Bookmakers use algorithms that take into account a wealth of data:
- Historical performance: Past performance of teams or players.
- Real-time data: Current form, injuries, and weather conditions affecting the game.
- Market behavior: How your users bet is often reflected in the market demand for certain odds.
- Commission and margins: Commission rates tailored to ensure profit without scaring off players.
Different types of odds in sports betting
To cater to players worldwide, you need to understand and offer multiple odd formats. It will give your players the flexibility and comfort they seek ensuring more engagement and retention. Each user segment may prefer a different odd format based on their geography and betting habits.
1) Fractional odds (UK odds)
Used in the UK, fractional odds are presented as ratios (e.g. 5/1). This format shows how much profit a player will make on their stake. A player betting £1 at 5/1 will win £5 if successful. For operators, understanding fractional odds allows you to control the profit margins for both players and the platform.
2) Decimal odds (European odds)
Popular in Europe and Canada, decimal odds are easier for many players to understand. A decimal figure (e.g. 6.00) is the total payout (including the stake). This simple calculation (stake x odds) is global-friendly. For operators, multi-format support is key to targeting international markets.
3) Moneyline odds (American odds)
Used in the US, Moneyline odds show either a positive or negative number. Positive odds are how much a player can win with a $100 stake, negative odds are how much a player needs to stake to win $100. As an operator, offering Moneyline odds will help you attract and retain US-based players.
How do you convert odds in sports betting?
If you have a global sportsbook platform, allow your players to convert between odds formats. Players from different regions will prefer different odds formats and when they can convert the odds, it will enhance their experience.
- Fractional to Decimal: Divide the fraction, then add 1.
- Example: 5/1 becomes (5 ÷ 1) + 1 = 6.00. 5/1 means for every 1 unit you bet you’ll win 5 units in profit and the decimal is 6.00 which includes the total payout (profit and stake).
- Moneyline to Decimal (Positive): Divide the Moneyline figure by 100, then add 1.
- Example: +500 becomes (500 ÷ 100) + 1 = 6.00. So, if you bet $100 at +500 you’ll win $500 in profit and get a total payout of $600 (including your original $100 stake).
- Moneyline to Decimal (Negative): Divide 100 by the absolute value of the Moneyline figure, then add 1.
- Example: -200 becomes (100 ÷ 200) + 1 = 1.50. So if you bet $200 at -200 you’ll win $100 in profit and get a total payout of $300 (including your original $200 stake).
Why odds management is important for iGaming operators?
For iGaming operators, odds management is more than just setting numbers. It’s about being competitive, engaging, and profitable. Top B2B iGaming solutions providers offer odds management tools, including matching engines and easy bet management, to make this process seamless.
Here’s why odds management is key for your iGaming business:
- Player retention: Players like platforms that offer fair, clear, and competitive odds. With a back and lay odds support you can offer both sides of the betting experience to different types of players.
- Profitability and risk management: Adjust custom commission rates in the back-office and you control your margins, your platform will be profitable and the odds will be attractive.
- Real-time flexibility: In fast-paced betting environments like in-play betting the ability to adjust odds and manage risk is key to a smooth player experience and protecting your bottom line.
Summary
As the iGaming industry evolves, the future of sports betting odds will be all about real-time data, AI-driven algorithms, and personalization. With in-play betting on the rise, operators must adapt to dynamic odds changes to stay relevant and offer fair but fun opportunities for players. Future-proof your platform now with PieGaming’s robust matching engine, easy bets management, and secure odds management solutions.
