Sometimes, you may need to know how to work out betting odds for some friends. Maybe the office was invited to the horse races and you have to figure it out; or perhaps you are the best at math out of all your buddies. Never fear, for we will inform you just how the pros work out betting odds. While gambling is nothing to take lightly, it won't hurt to know more about betting odds than you did before.
Here is what you will need to work out betting odds:
- Good math skills
- The probability of winning for each contestant
- Convert probabilities into percentages. Let's suppose you are at the horse raceway (for the sake of example). Horse one has a 50/100 chance of winning, while Horse two has a 30/100, and Horse three has 20/100. Note that all add up to 100, therefore Horse one has a 50% chance, etcetera. Theoretically, if these horses raced 100 times together, Horse one should win 50 of the races, Horse two would win 30, and Horse three would get 20.
- The risk of betting on a specific contestant should be inversely proportional to the reward. Think about it. If you are betting on a very high-ranked contestant, and he/she wins, your reward should be minimal (considering that it didn't take much risk to bet on a sure-fire winner). If, however, you place your betting odds on a low-ranked contestant, and he/she comes out victorious, you should be greatly rewarded (for such a high risk). Therefore, if Horse one's betting odds are 50/100, for every 50$ you wager, you will receive $100 in reward if your contestant wins. Horse two, however, with its 30/100 betting odds, only has to have $30 placed on it to receive a $100 profit. The formula for the betting odds are X/Y; therefore for X amount of dollars wagered, Y is rewarded in the case of a victory.
- Dish out money appropriately. Part of knowing to work out betting odds is also what money to give what people. As said before, the X/Y formula is very good for a winner-take-all situation, in where the number one contestant takes 100% of the pool. However, sometimes second place (or third, etcetera) needs a little something. In this case, to work out betting odds between multiple shares you will need to divide the 100% up into three shares (for first, second, and third place). The lowest amount the winner should receive must at least be higher than the highest percentage of winning; so if Horse B wins against Horse A's 50/100 betting odds, the better of Horse B needs at least 51% of the pool.
While it isn't easy to figure out how to work out betting odds, we are certain you are a pro. With some basic college math skills, a sheet of paper, and a pen, you will be working out betting odds in no time! Stick with it chief!