# How to Calculate Betting Odds

In all types of sports betting we come across betting odds of some sort. The bookmakers put these into place as a form of prediction as to how the event will turn out. In the case of horse racing, the odds reflect the likelihood of a particular horse winning a race, and directly affect the amount of money you can win on that horse should you bet on it. Understanding these betting odds is vital to not only having a successful and enjoyable experience, but also to be more profitable in the long run.

## From Probability To Betting odds

Betting odds are based on probability; i.e. the likelihood of something happening. We use probability every day without realising it, in making decisions such as whether to take a jacket due to rain or if there is going to be traffic on the way to work.

Probability is worked out using the equation:  Favourable outcomes / all possible outcomes. To understand this, let’s look at a boxing match. In boxing you have two competitors, so there is one favourable outcome and two possible outcomes: 1 / 2 which gives us 0.5. So the probability of your favourite fighter wining the match is 0.5

## Transferring Probability Into Betting Odds

Working out betting odds from here is not hard at all. Again you will need a simple equation: 1 / probability of your chosen outcome. So in our boxing match the calculated betting odds of your fighter wining is 1 / 0.5 which is 2.0. Of course, no match is exactly even, which is where the bookies come into the equation. All matches will be given odds by various bookies, be they online or not. Working out exactly how fair the odds offered by each bookmaker is, is the whole idea behind being able to calculate betting odds.

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