Negative odds may seem confusing at first, especially if you're new to sports betting; however, they are more common than you may realise.
Negative odds play an important role in betting, as they can tell you how likely something is to happen and what you could potentially win if your bet is successful.
In this blog post, we'll explain what negative odds are in betting and whether it is better to bet on negative or positive odds. We'll also provide an example of negative odds in betting so you know what to expect.
What Are Negative Odds In Betting?
Negative odds are a way bookmakers show you which team or player is more likely to win an event. Negative odds is a term commonly used in the US and is often shown as plus or minus numbers, whereas betting favourites in the UK are shown as a fraction.
For example, you may see negative odds in the US shown as numbers like -200, while UK betting favourites are displayed as fractions such as 1/5.
Imagine you are looking at a football match between Team A and Team B, where Team A has odds of -400. This indicates Team A is the favourite to win, meaning you need to bet £400 to try and win a profit of £100.
The lower the negative odds, the less profit potential there is because they represent more certainty in the outcome.
Why Is The Favoured Team Negative?
When betting on a sports event, you may see the favoured team showing negative odds. This happens because bookmakers believe this team is more likely to win based on their performance, past results, and other factors.
Bookmakers use negative odds to balance bets, as they want to encourage people to bet on both the favourite and the underdog. By making the odds for the favoured team negative, they try to balance potential payouts.
Negative odds mean you have to bet more money to earn a profit, as there is a higher probability of the favoured team winning. Bookmakers adjust the odds to reflect this likelihood, making it challenging to gain big returns from betting on the favourite.
Is It Better To Bet On Negative Or Positive?
Deciding whether to bet on negative or positive odds depends on what you're comfortable with, as both types of odds offer different risks and potential rewards.
Negative odds often mean you're betting on the favourite; however, the potential for large profits is less because you need to wager more for a smaller possible return.
On the other hand, positive odds are linked to the underdog. These may seem riskier because these outcomes are less likely; however, if the underdog wins, you could potentially enjoy larger payouts for a smaller bet.
Your choice between negative or positive odds should align with your own personal preferences. If you'd prefer potentially more consistent, smaller wins, negative odds may suit you better. If you're aiming for a potentially bigger win and don't mind the increased risk, positive odds could be more appealing.
What Is An Example Of Negative Odds?
Let's break down an example of negative odds to make it easy to understand. Suppose you’re interested in a tennis match between Player A and Player B, and the bookmaker lists Player A's odds as -200.
These negative odds mean Player A is the favourite in this match. To potentially win £100, you would need to place a bet of £200, reflecting the higher probability of Player A winning, according to the bookmaker's assessment.
With odds of -200, the chance of winning is considered more certain compared to an underdog; however, because of this, your potential profit could be smaller relative to your stake.
By using this example, you can see how negative odds work and what they may mean for your betting strategy. This understanding ensures you can better calculate the risks and potential rewards before placing any bets.
Always remember to gamble responsibly for an enjoyable betting experience. Ensure your betting experience remains safe and entertaining by setting limits to your playing time, sticking to a strict budget within your means and making use of any responsible gambling tools available.
*All values (Bet Levels, Maximum Wins, etc.) mentioned in relation to this game are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.