Many bettors, especially newcomers, often find betting odds confusing. To make things clearer, we’ve created a detailed guide that explains how to understand betting odds and how to understand them.
What are Betting Odds?
At their core, betting odds are numbers that tell you two things: the likelihood of an event happening and how much you could win if you place a bet. They’re the foundation of every Canadian sportsbook, whether you’re betting on the NHL, CFL, or even esports. For Canadian players, betting odds explained starts with recognizing their dual purpose—showing probability and payout potential.
Sportsbooks set odds based on a mix of statistics, expert analysis, and betting trends. For example, if the Montreal Canadiens are heavy favorites to beat the Ottawa Senators, their odds reflect that confidence. But odds aren’t static—they can shift as more bets come in or news like injuries breaks. Understanding this basics is your first step to mastering sports betting in Canada.
How are odds determined?
A bookie has a trader or oddsmaker who sets the odds. They assess team performance based on past results, ability and recent form. Better teams have lower odds as they are more likely to win, weaker teams have higher odds.
But most recently, there is technology involve that is capable of assigning odds to games and events and updating them accordingly to the other bookies. So, although it is still possible to find difference in between sportsbooks and they offered odds, there is somehow an equal balance in between them and these days it is hard to choose an sportsbook only based on their odds, hence we recommend to choose a betting site based on other factors as well, such as efficiency on payments, wide variety of sports markets and of course bonuses.
The Three Types of Betting Odds Explained
Canadian bettors will encounter a few odds formats, but two dominate the scene: American and decimal. Here’s betting odds explained across these types, with a quick nod to fractional odds for completeness.
Decimal Odds
Decimal odds are the go-to for many Canadian sportsbooks, like Sports Interaction, because they’re simple. The number represents your total payout per $1 bet, including your stake. So, 2.50 odds mean a $1 bet returns $2.50 ($1.50 profit + $1 stake). Example: Betting $10 on the Edmonton Oilers at 1.80 odds yields $18 total ($8 profit). Most Canadian bettors prefer decimals for their clarity—multiply your stake by the odds, and you’re done.
Fractional Odds:
Fractional odds are mostly spotted in the UK and Ireland, they’re a classic way of showing betting odds with a little fraction, like 5/1 (“five-to-one”) or 2/5 (“two-to-five”). Picture this: the top number (the numerator) is how much cash you’d pocket as profit, while the bottom number (the denominator) is what you’re tossing into the pot to start with. Say you’ve got 5/1 odds—if you bet a buck, you’d snag $5 in winnings plus your original dollar back, so you’re walking away with $6 if luck’s on your side.
Now, when the odds flip to something like 1/2, it’s a different vibe—the profit’s smaller than your stake, so it’s more of a “safe bet” with a modest payout. Bet $2 at 1/2, and you’re looking at $1 profit plus your $2 back, totaling $3. Fractional odds might feel a bit old-school compared to slick decimal or moneyline setups.
American Odds
American odds, often called moneyline odds, use positive (+) and negative (-) signs. Negative odds (e.g., -110) show how much you need to bet to win $100. Positive odds (e.g., +150) show how much you’d win on a $100 bet. For instance, if the Toronto Raptors are -130 against the Boston Celtics, you’d need to wager $130 to pocket $100 in profit. If they’re +150 underdogs, a $100 bet nets you $150 if they win. This format is common on U.S.-facing sites Canadians use, like Bet365.
How to Read Betting Odds: Step-by-Step
Now that you know the formats, let’s get practical. Here’s how to read betting odds like a pro, whether you’re eyeing an NHL playoff game or a CFL matchup.
- Identify the Format: Check if the odds are American (+/-) or decimal (e.g., 2.25). Most Canadian sites let you toggle between them.
- Spot Favorites and Underdogs: Favorites have negative American odds (e.g., -150) or decimal odds below 2.0 (e.g., 1.67). Underdogs show positive American odds (e.g., +200) or decimals above 2.0 (e.g., 2.50).
- Calculate Winnings:
- American: For -150 odds, a $150 bet wins $100 profit ($250 total). For +200, a $100 bet wins $200 profit ($300 total).
- Decimal: Multiply your stake by the odds. A $50 bet at 2.20 odds returns $110 ($60 profit).
What does 3 to 1 mean?
When you see odds listed as 3 to 1 it means for every $1 you bet you will win $3 if your bet is successful. So your total payout would be $4 (your $1 bet plus your $3 win).
What does +200 mean?
If you see odds of +200 it means a $100 bet on the underdog will win you $200. These are American odds showing the payout is more than your original stake, because the underdog is the riskier bet.
Negative Odds
Negative odds like -200 mean you need to bet $200 to win $100. To calculate the payout for a winning bet, multiply the wager by the odds and subtract the original wager. You would have to bet $200 to get a $100 profit. These are favourite odds, meaning the outcome is considered
What does +/- mean in betting odds?
- Plus (+) indicates an underdog. The number that follows tells you how much profit you’ll make on a $100 bet.
- Minus (-) signifies a favorite. The number that follows shows how much you need to bet to win $100.
Here’s a quick comparison for a $100 bet:
| Outcome | American Odds | Decimal Odds | Profit | Total Payout |
|---|---|---|---|---|
| Favorite Wins | -150 | 1.67 | $66.67 | $166.67 |
| Underdog Wins | +200 | 3.00 | $200 | $300 |
Betting Odds in Action: Canadian Examples
Let’s see betting odds explained with real-world Canadian examples, showing how odds play out in popular sports.
NHL Example
Imagine the Edmonton Oilers at +120 facing the Calgary Flames at -140. If you bet $100 on the Oilers and they win, you’d earn $120 profit. But a $140 bet on the Flames would return $100 profit if they take the game. These odds might shift if Connor McDavid gets injured—suddenly, the Flames could drop to -160 as more bettors back them.
CFL Example
Picture the Toronto Argonauts at 2.10 odds against the Winnipeg Blue Bombers at 1.75. A $50 bet on the Argos pays $105 total ($55 profit) if they pull off the upset. Meanwhile, $50 on the Bombers nets $87.50 ($37.50 profit). Odds could tighten if Winnipeg’s quarterback is sidelined late in the week.
These examples show how odds reflect both probability and betting action, giving Canadian bettors a dynamic landscape to navigate.
The Vig and Its Impact on Sports Betting Odds
Vigorish, also known as vig or juice, is the fee that a sportsbook charges when you place a bet. It’s essentially the cut that the betting sites take for offering its services.
To maximize your winnings, it’s best to choose a sportsbook with a lower vig. A lower vig means you’ll retain more of your earnings. While it can be challenging to figure out the vig just by looking at sports betting odds, we’re here to clarify it for you.
Let’s say you and a friend bet $20 each on who will win a hockey game. In a straightforward 50-50 bet like this, the winner would normally expect to collect $40, doubling the original stake.
However, sportsbooks don’t operate in this simple manner. Instead, they take a percentage of the total $40 payout, leaving you with around $38, depending on the site. This deduction is what’s referred to as the vig or juice.
Implied Probability in Sports Betting
Betting odds aren’t just about payouts—they hint at the likelihood of an outcome, known as implied probability. Understanding this adds depth to betting odds explained and helps you spot value.
How It Works
Implied probability converts odds into a percentage chance. Here’s how to calculate it:
- American Odds:
- Negative: Odds / (Odds + 100). For -200, it’s 200 / (200 + 100) = 66.67%.
- Positive: 100 / (Odds + 100). For +150, it’s 100 / (150 + 100) = 40%.
- Decimal Odds: 1 / Odds. For 2.50, it’s 1 / 2.50 = 40%.
Example
If the Vancouver Canucks are at -200, the implied probability is 66.67%—the sportsbook thinks they’re likely to win. If they’re at 2.50 decimal odds, the chance drops to 40%, suggesting an underdog status. Compare this to your own analysis; if you think the Canucks have a 50% shot at 2.50 odds, that’s a potential value bet.
Converting Odds to Percentages
Here’s how you can transform different odds formats into percentages.
Decimal Odds to percentage
To convert decimal odds to a percentage, simply divide 100 by the decimal odds. For instance, with odds of 4.00, you calculate it as 100 / 4, which equals 25%. This means there’s a 25% chance of the event happening.
Fractional Odds to percentage
First, turn the fractional odds into a decimal, then apply the same formula. For odds of 3 to 1, the decimal equivalent is 4 (since you add 1 for the stake). Thus, 100 / 4 = 25%.
American Odds to percentage
For positive American odds, use the formula 100 divided by (odds + 100). Positive odds indicate potential winnings over the initial stake and represent riskier bets. For negative odds, divide the negative odds by (negative odds + 100). For example, +200 odds convert to 100 / (200 + 100) = 33.33%, while -200 odds convert to 200 / (200 + 100) = 66.67%.
Check our odds converter where you can insert your odds and get a conversion into other formats as well as the implied probability of the odds.
Tips for Using Betting Odds Effectively
Knowing betting odds explained is one thing—using them well is another. Here are tips to boost your betting game in Canada:
- Shop Around: Compare odds on sites like Bet365, Sports Interaction, or Pinnacle. A difference of -110 vs. -120 on the same game can save you money long-term.
- Find Value: Look for bets where your predicted probability beats the implied odds. If you think a +200 underdog has a 40% chance (vs. 33.33% implied), it’s worth a shot.
- Avoid Over-Betting Favorites: Heavy favorites (e.g., -300) offer low returns for high risk if an upset happens. Balance your bets with calculated underdog plays.
- Use Tools: Check out TheOddsCalculator’s odds calculator to test payouts before you bet.
FAQ
Decimal odds are simplest for Canadian newbies. They show your total payout clearly—multiply your stake by the number, and you’re set.
Sportsbooks use stats, team performance, and betting patterns. If lots of money flows to the Leafs, their odds might shorten from -120 to -150.
Yes! Most Canadian platforms like Bet365 or Sports Interaction let you toggle between American, decimal, and fractional in the settings.
Odds reflect probability and potential winnings; payouts are the actual cash you get. Betting odds explained means understanding both—for example, 2.00 odds on a $10 bet pays $20 total.
Conclusion
By now, betting odds explained should feel less like a puzzle and more like a tool in your hands. Whether it’s American odds on an NHL game or decimal odds on the CFL, you’ve got the basics to read, calculate, and strategize like a pro. Canadian bettors have a unique edge with legal sportsbooks and a passionate sports culture—use it wisely. Ready to put this knowledge to work? Try our odds calculator at TheOddsCalculator to crunch the numbers on your next bet. And remember: bet responsibly—check out resources like the Responsible Gambling Council to keep it fun. Happy betting!
