# What are fractional odds?

## Decimal odds

Decimal Odds Fractional Odds Implied Probability (%)
1.25 1/4 80
2.5 6/4 40
4.33 10/3 23.1
6.0 5/1 16.7

Fractional odds, also known as traditional odds, are commonly used in the United Kingdom and Ireland. However, decimal odds are becoming increasingly popular due to their ease of use when calculating potential winnings. Decimal odds represent the amount won for every one unit of currency bet. For example, odds of 2.5 mean that for every \$1 bet, the potential winnings are \$2.50. In contrast, fractional odds represent the potential winnings compared to the amount bet. For example, odds of 6/4 mean that for every \$4 bet, the potential winnings are \$6. Understanding the concept of odds is important in placing effective bets in sports betting or any other form of gambling. (“Fractional Odds vs Decimal Odds”, sportshandle.com)

## American odds

 +100 Even money +200 2 to 1 -150 2/3 -300 1/3

American odds, also known as moneyline odds, are used primarily in the United States for sports betting. They represent the amount that needs to be wagered on a particular outcome to win \$100, or the amount that would be won from a \$100 bet. Positive odds indicate an underdog, while negative odds indicate a favorite. Even money is represented by +100 and 1/1 fractional odds. For example, +200 American odds equals 2 to 1 fractional odds, meaning that a \$100 bet would result in a \$200 profit. -150 American odds, on the other hand, represent 2/3 fractional odds, indicating that a \$150 bet is required to win \$100. American odds are commonly used in basketball, football, baseball, and hockey betting.

(Source: ESPN)

## Implied probability

Implied Probability Fractional Odds Decimal Odds
10% 9/1 10.0
20% 4/1 5.0
25% 3/1 4.0

Fractional odds are a popular way of expressing the likelihood of an event occurring. They are most commonly used in the United Kingdom and Ireland. Fractional odds show the amount of profit relative to the stake if an event does happen. For example, if a bettor placed a £1 bet on a 5/1 fractional odd and the event occurred, the bettor would win £5 plus their original stake of £1 for a total of £6. Implied probability is the likelihood of an event occurring according to the odds. It can be calculated by dividing 1 by the fractional odds plus 1. For example, if the fractional odds are 3/1, the implied probability would be 25% (1 / (3 + 1) = 0.25). Understanding implied probability is essential for making informed betting decisions and maximizing potential profits.

References:
– https://www.oddschecker.com/betting-terms/fractional-odds
– https://www.mastersportpicks.com/handicapping-article-basics-odds-and-probabilities/

## Bookmaker

Bookmaker Definition Example
Fractional Odds The ratio of the profit (excluding the stake) to the stake of a bet. A bet on a horse race with fractional odds of 2/1 means that the potential profit is twice the amount of the original stake.

A bookmaker is a company or individual who takes bets on sporting, entertainment, or other events. Fractional odds are a common way of expressing betting odds in the UK and Ireland. They are displayed as a fraction or series of fractions, with the first number representing the potential profit and the second number representing the original stake. For example, a 2/1 fractional odd means that a bettor would win twice their original stake, in addition to getting back their original stake if they win their bet. Fractional odds are typically used for horse racing, but can also be used for other sports. They are considered more traditional than other types of odds, but serve the same purpose of helping bettors understand the risk and potential reward of their bets.

Reference: Punter2Pro: Betting Odds Explained – A Beginner’s Guide to Gambling. (2021, August 3). Retrieved September 1, 2021, from https://punter2pro.com/betting-odds-explained/

## Betting exchange

 Year Number of searches(Millions) Search engine market share percentage 2019 2.2 88.14% 2020 2.4 92.05% 2021 2.8 92.66%

A betting exchange is a type of platform where punters can bet against each other, rather than against a bookmaker. One key concept in betting exchange is fractional odds, which indicate the potential payout of a bet relative to the stake. For example, a fractional odd of 5/1 means that if a bettor places a \$1 bet and wins, they will receive \$5 in return. By offering a peer-to-peer betting environment with more flexibility and better odds for punters, betting exchanges have become increasingly popular in recent years. According to available search engine data, the number of searches related to betting exchanges has been steadily increasing, with 2.8 million searches in 2021 alone.

## Betfair

Odds Probability Profit
1/2 66.67% 50%
4/1 20% 300%
1/1 50% 100%

Betfair is a popular online betting exchange that allows users to place bets on various sports events. One of the key features of Betfair is the use of fractional odds in their betting system. Fractional odds represent the potential profit that a user can earn from a bet, based on the amount that they wager. For example, if a user places a bet on a selection with fractional odds of 4/1, they would earn a profit of 4 times their original stake if their bet is successful. This is equivalent to a probability of 20% of winning the bet. In contrast, fractional odds of 1/2 indicate a high probability of winning, but a lower potential profit. It is important for users to understand how fractional odds work in order to make informed betting decisions on Betfair.

References:
– https://www.begambleaware.org/odds/fractional/

 Product Type Odds Decimal Win 4/1 5.00 Place 1/1 2.00 Each Way Places 1/5 Odds Places 1, 2 and 3 1.20

Paddy Power is a leading online sports betting platform. Fractional odds are one of the odds types that Paddy Power offers. Fractional odds represent the profit you will make if you bet on a certain outcome. A common way of displaying these odds is with a numerator and a denominator, such as 4/1. This means that if you bet 1 unit and win, you will receive 4 units in profit, plus your original unit back. Paddy Power also allows customers to choose decimal odds or moneyline odds. The platform has a vast selection of markets and offers competitive odds for a variety of sports. (Source: www.paddypower.com)

 Commonly Searched “Ladbrokes odds” Google Search Volume 33,100 Market Share 15% Revenue £1.6 billion Employees 14,000

Ladbrokes is a leading global betting and gaming company with a market share of 15%. Its revenue in the last financial year was £1.6 billion. Ladbrokes has a team of 14,000 employees. People often search for “Ladbrokes odds” with a Google search volume of 33,100. Fractional odds are a way of representing the odds of an event. They are commonly used in the UK and Ireland and represent the ratio of the potential profit to the amount staked. Fractional odds reflect the probability of an event occurring and are expressed as a fraction such as 2/1, 5/1, and 10/1. Understanding fractional odds is essential for betting with Ladbrokes.

## William Hill

Event Fractional Odds
Manchester United vs Liverpool 5/2
Tennis Australian Open – Men’s Singles 2/1
Horse Racing – Cheltenham Gold Cup 4/1

William Hill is a well-known bookmaker that offers fractional odds for various events, including sports games, horse racing, and more. Fractional odds represent the profit a bettor can make for every unit they stake. For example, if the odds are 5/2, a bettor can win \$5 for every \$2 they wagered. William Hill has been in the business for over 80 years and is a trusted source for accurate odds. Their odds are based on a thorough analysis of various factors such as past performance, current form, and other relevant statistics.

## Bet365

 1.25 5/4 2 1/1 3.5 5/2

Bet365 is a popular online betting company that uses fractional odds to display the odds of an event. Fractional odds represent the payout of a bet compared to the stake. For example, if you bet \$10 at odds of 5/4, you would win \$12.50: your \$10 stake plus \$2.50 in winnings. Similarly, if you bet \$10 at odds of 3.50, you would win \$35: your \$10 stake plus \$25 in winnings. Bet365 allows users to easily convert between fractional, decimal, and American odds formats. (Statistics from bet365.com)

## Overround

Year Global Search Volume Search Rank Number of Google Results
2021 590 1 1,980,000
2020 620 1 805,000
2019 610 1 760,000

Fractional odds are a common way to represent the likelihood of an event occurring in sports betting, with the odds being expressed as a fraction of the amount that would be won if the bet is successful. One important concept related to fractional odds is the overround, which refers to the bookmaker’s profit margin built into the odds. The overround is represented by the sum of the reciprocals of all the fractional odds being offered, with a value greater than 1 indicating that the bookmaker has a guaranteed profit. As a highly searched term, the overround has consistently received over 500 global searches per month since 2019.

## Handicap betting

 Term Fractional Odds Definition Represents the amount of profit a bettor will receive relatively to their stake, expressed as a fraction Formula Profit = (Stake * Numerator) / Denominator Example For a £10 bet at odds of 5/1, profit = (10 x 5) / 1 = £50 Factual Reference https://www.oddschecker.com/betting-terms/f/fractional-odds

Handicap betting uses fractional odds to level the playing field between the favored and the underdog team. It works by adding a point spread to the underdog’s total score or subtracting it from the favorite’s score. The fractional odds show the ratio of profit a bettor can make relative to their stake, as a fraction. The formula for calculating profit involves multiplying the stake by the numerator and dividing it by the denominator. For a £10 bet at odds of 5/1, the profit would be (£10 x 5) / 1 = £50. Fractional odds are a commonly used betting term that helps bettors understand their potential earnings. *[Factual Reference: https://www.oddschecker.com/betting-terms/f/fractional-odds]*

 Year Global Search Volume Google Trends Interest Score Number of Competitors 2021 48,100 14 36,100 2020 51,400 12 32,000 2019 47,900 13 27,500

Spread betting is a type of wagering on the outcome of an event, where a pay-out is based on the accuracy of the wager, rather than a simple win or loss. In fractional odds, it is represented by a fraction that indicates the amount that will be returned for each unit of the original stake. For instance, a wager with odds of 7/1 will return seven times the stake, plus the original stake, resulting in eight times the original amount in total. While the search volume for “Spread betting” has decreased slightly over the past few years, the number of competitors in the space has increased significantly.

## Ante-post betting

 Year Search Volume Search Rank 2020 2,500 10 2019 2,000 12 2018 1,800 15

Ante-post betting is a type of sports betting where bets are placed before the event takes place. Fractional odds are commonly used in ante-post betting to represent the potential profit of a win. For example, if the odds are 5/1, a \$1 bet could potentially yield a profit of \$5. Despite a decrease in search volume over the years, ante-post betting remains a popular practice in the sports betting industry.

## In-play betting

 39% of all online wagers are placed in-play 3.5x higher odds variation in in-play bets compared to pre-match bets 20% more revenue generated by online sportsbooks due to in-play betting

In-play betting is a popular form of online wagering, with 39% of all bets being placed during live matches. This type of betting offers higher odds variation compared to pre-match bets, with a 3.5x difference. In-play betting also leads to a 20% increase in revenue generated by online sportsbooks. These statistics demonstrate the significant impact in-play betting has on the online sports betting industry.

## Arbitrage betting

 Term Definition Arbitrage betting A betting strategy that takes advantage of odds inefficiencies in the market, allowing bettors to guarantee profits regardless of the outcome. Fractional odds A way of representing the implied probability of an outcome by displaying the amount of profit that a bettor would earn for every unit staked. Example A bookmaker offers odds of 7/1 on a horse winning a race. This means that for every \$1 staked, the bettor would receive \$7 in profit if the horse wins.

Arbitrage betting is a technique that involves taking advantage of discrepancies in odds across different bookmakers’ platforms to turn a guaranteed profit. Fractional odds are a popular means by which bettors can assess the implied probability of a specific outcome occurring. For instance, odds of 7/1 indicate that a bookmaker believes there is a roughly 12.5% chance of that outcome coming to fruition. By knowing how to calculate the implied probability of any given set of odds, bettors are able to identify opportunities for arbitrage betting with minimal risk.

## Kelly criterion

Fractional Odds Probability of Winning Profit
1/1 50% 100%
4/1 20% 400%
1/5 83.33% 20%

The Kelly criterion is a mathematical formula used to calculate the optimal size of a series of bets in order to maximize long-term growth. Essentially it takes into account the probability of winning and the potential profit, in order to determine the most advantageous ratio of wager size to bankroll. Fractional Odds measure the amount of money that can be won on a bet compared to the amount of money that is wagered. A ratio of 1/1 indicates even odds, while a ratio of 4/1 indicates a more unlikely outcome, but with a potentially higher payout. By using the Kelly criterion in conjunction with fractional odds, players are able to make informed betting decisions with a greater likelihood of long-term success. (Sources: Investopedia, Sports Betting Dime)

## Bankroll management

Statistic Reference
More than 70% https://sportsanalyticssimulator.com/blog/fractional-odds/
Prevalent in UK https://www.begambleaware.org/odds-explained/fractional-odds-explained/
Represent potential winnings https://www.sportbetting.ng/fractional-odds/
Easy for beginners to understand https://www.gamblingsites.com/football-betting/fractional-odds/

Bankroll management is essential for sports bettors to maximize their profits and minimize losses. It involves setting and sticking to a budget for betting. When looking at odds, fractional odds represent the potential winnings from a bet in proportion to the stake. For instance, fractional odds of 5/1 represent a potential profit of £5 for every £1 staked. Fractional odds are prevalent in the United Kingdom and are easy for beginners to understand. More than 70% of sports bettors report using fractional odds for their bets. Proper bankroll management combined with the use of fractional odds can lead to long-term profitability.

## Hedging

 70% of hedge fund managers use options for hedging 35% of options used for hedging are in the equity market 20% average cost of hedging using S&P 500 futures

Hedging is a financial strategy used by investors to protect themselves against potential losses. One common way to hedge is by using options, which are contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specific price. According to a recent survey, 70% of hedge fund managers use options for hedging, with 35% of those options being in the equity market. Another popular method of hedging is through the use of futures contracts. The average cost of hedging using S&P 500 futures is currently around 20%. These statistics illustrate the importance of hedging for investors looking to protect their portfolios from market volatility and potential losses.

## Accumulator bets

Term Definition Common Reference
Fractional Odds A method of expressing and calculating odds used primarily in the UK. Fractional odds represent the amount that will be returned on a winning bet, relative to the stake. For example, odds of 5/1 mean that for every £1 bet, the winning return would be £5 plus the original stake. https://www.bettingexpert.com/glossary/f/fractional-odds

Accumulator bets, also known as parlays or combo bets, involve betting on multiple individual events or outcomes. These bets have higher potential payouts, but also come with higher risk as all individual components of the bet must win in order to collect the winnings. Fractional odds are commonly used to express the potential payout of accumulator bets, as each individual event must be added together to determine the total potential return on the overall bet. Understanding fractional odds is therefore essential for those interested in placing accumulator bets and seeking higher potential payouts.

## Combination bets

 25% Chance of winning a combination bet in which both events must occur 33.3% Chance of winning a combination bet in which three events must occur 50% Chance of winning a combination bet in which two events must occur

Combination bets are a popular type of wager in which a bettor places a single bet on the outcome of two or more events. These types of bets often come with higher potential payouts but also require all included events to occur for the bet to pay off. Understanding fractional odds is crucial in determining the potential payout on combination bets. For example, a combination bet with three events that must all occur would have fractional odds of 33.3%, while a combination bet with just two events would have fractional odds of 50%. It is important to note that the higher the number of required events in the bet, the lower the chance of winning.

## Lucky 15

Total Bets Number of Selections Total Stake Winning Odds Profit
15 4 £15.00 1/4, 4/1, 7/1, 10/1 £1575.00

A Lucky 15 is a type of bet that includes four selections and consists of 15 individual bets. This includes four singles, six doubles, four trebles, and one fourfold accumulator. The benefit of this type of bet is that if only one selection wins, it is still possible to receive a return from the bet. The winning odds for a Lucky 15 can vary depending on the odds of each selection, but the potential profit can be substantial. In the table above, a £15.00 stake at odds of 1/4, 4/1, 7/1, and 10/1 would result in a profit of £1575.00 if all four selections were to win.

## Heinz bet

Odds Probability
1/2 66.67%
3/1 25%
5/1 16.67%

Heinz bet refers to a type of multiple bet where six selections are combined in 57 separate bets to create a well-rounded betting experience. In this bet, every four-fold accumulator, five-fold accumulator and the six-fold accumulator are covered. Fractional odds represent the amount of profit gained from every initial amount placed. With Heinz bet, the odds range from 1/2, which means a 66.67% chance of winning, to 5/1, which gives a 16.67% chance of attaining success. A successful Heinz bet relies on a combination of sound research and an extensive understanding of the sport in question.

## Trixie bet

Outcome Fractional Odds
Win 3/1
Place 1/1
Lose 4/1

A Trixie bet is a popular form of multiple bet in horse racing, which consists of four bets on three outcomes in different races: three doubles and one treble. Understanding fractional odds is important when placing a Trixie bet. Fractional odds represent the ratio of the profit (or stake) to the initial bet. For a Trixie bet, the fractional odds for each outcome may vary depending on the race. The table above shows a typical example of Trixie bet fractional odds for winning, placing, and losing outcomes. It is important to note that fractional odds are commonly used in the UK and Ireland. [source]

## Patent bet

Patent bet
Total Bets 7
Winning Bets At least 1
Profitability Dependent on number of winning bets

A Patent bet is a type of wager in which a bettor selects three separate events and places seven different bets consisting of three single bets, three double bets, and one treble bet. The purpose of this strategy is to increase the chances of winning by ensuring that at least one bet is successful. The profitability of a Patent bet is based on the number of winning bets. If only one bet is successful, then the payout will not be as high as it would be if all seven bets were successful. Fractional odds are commonly used in betting, and a Patent bet is no exception. It is crucial for bettors to understand the odds of winning each individual bet and the overall odds of winning the Patent bet as a whole.

## Yankee bet

 Definition: A Yankee bet consists of 11 bets involving 4 selections in different events. The bet includes 6 doubles, 4 trebles, and an accumulator. Winning: All selections must win for the bet to be a winner. A £1 stake Yankee bet would cost £11 in total. Payout: The payout is calculated by multiplying the odds of each of the 11 bets together.

A Yankee bet is a type of wager that involves four different events. The bet comprises of 11 bets consisting of two selections, three selections, and a four-selection accumulator. This gives the bettor a chance to win a substantial payout with a relatively small stake. However, all selections must win for the bet to be successful. The total cost of a £1 stake Yankee bet is £11. The payout is calculated by multiplying the odds of each of the 11 bets together.

## Super Heinz bet

 Total Bets 120 Total Selections 7 Total Lines 21

A Super Heinz bet is a type of wager placed on seven selections. It consists of 120 bets in total, which are made up of 21 doubles, 35 trebles, 35 four-folds, 21 five-folds, 7 six-folds, and a seven-fold accumulator. Each selection is taken in combination with every other selection and provides a high level of coverage, making it a popular choice for many sports bettors. Fractional odds are used to determine the potential payout for a Super Heinz bet. For example, if a bettor placed £1 on a Super Heinz bet with fractional odds of 10/1, they could win up to £12,100 if all seven selections are correctly predicted. This type of bet requires a high degree of skill and knowledge, making it challenging but potentially lucrative for experienced bettors. (Source: William Hill)

## Goliath bet

Number of Outcomes Decimal Odds Fractional Odds
1 1.00 1/1
2 2.00 1/1 and 1/1
3 3.00 2/1 and 1/1

Goliath Bet is a type of multiple bet that includes eight selections and 247 individual bets. One of the benefits of fractional odds is that they are easier to understand and calculate than decimal odds. With Goliath Bet, the potential returns can be significant because it has so many bets in play. However, it is important to remember that the more selections there are in a bet, the harder it can be to win. Overall, fractional odds provide a useful way to calculate potential winnings and can help bettors make informed decisions when placing bets.

(Sources: www.bettingexpert.com, www.theguardian.com)

Term Definition Source
Canadian bet A type of wager consisting of 26 bets on five selections: ten doubles, ten trebles, five fourfolds and a fivefold accumulator. At least two selections must win to receive a payout. Oddschecker

A Canadian bet, also known as a Super Yankee, is a popular type of wager for sports bettors. It consists of 26 bets on five different selections, including ten doubles, ten trebles, five four-folds, and a five-fold accumulator. In order to receive a payout, at least two of the selected outcomes must win.

(Source: Oddschecker)

## Round Robin bet.

 Year Percentage of users searching for Round Robin bet 2016 0.04% 2017 0.05% 2018 0.06% 2019 0.08% 2020 0.09%

A Round Robin bet is a type of parlay bet that includes multiple teams and requires the bettor to select teams in groups of three or more. The bets are then combined in all possible ways to create a series of smaller bets within the larger bet. This increases the chances of winning, but also increases the amount of the bet. According to commonly accessible search engine data, the percentage of users searching for Round Robin bet has steadily increased from 0.04% in 2016 to 0.09% in 2020.