How do odds arise? An overview

The number of those who actively bet on sports several times a month is increasing steadily and sustainably. One reason for this is the constant digitalisation of sports betting, which enables betting on various sports events every second and every place. Thus the betting is settled more simply and faster than ever before, which creates an additional incentive. Those who actively and frequently bet on sports should, however, also think about how betting odds come about. Very few people really know what is behind betting odds in the field of sports betting. Yet it is precisely the odds that form the basis for every bet placed, as the profit is calculated from this. Therefore one should have a basic knowledge about the calculation of odds. Info on https://www.sportwetten.org/

Concrete calculation of odds The quotas of the bookmakers are in no way estimated or diced. The odds are based on an exact system that can be applied to all sports bets, regardless of the type of sport. In principle, however, the odds are designed for the advantage of the bookmaker, i.e. the betting providers and bookmakers interpret the odds in such a way that they have a better chance than the customers. Thus the profits of the bookmakers are then generated. It must be considered naturally that the bet offerers thereby perform a balancing act. On the one hand, they want to attract as many customers as possible and must therefore offer the best possible odds. On the other hand, they naturally want to distribute as little money as possible and minimise their own risk.

All this only works if the odds are always recalculated during the game. It should be noted that in this case there are no employees who type the odds into the system, but rather the odds are calculated on the basis of algorithms. These are computer programs that ensure that the odds are also calculated during the game within seconds. Based on hundreds of calculation steps, the odds are calculated with a risk discount in favour of the betting provider or bookmaker.

Calculation of betting odds - an example The calculation can be shown in more detail using a simple example. It is assumed that Bayern Munich will play Werder Bremen, whereby it is a home match for Bayern and an away match for Werder Bremen. Before the odds are calculated, reference is made to the probability of occurrence. It is assumed that Bayern Munich will win 80% and Werder Bremen 2%. A draw is 18%. The odds are now calculated from these probabilities: 100% / 80% = 1,25 100% / 2% = 50 100% / 18% = 5,55 These are now the three real odds that have been calculated on the basis of the probability of the game outcomes.

Of course, the odds are too risky for the betting provider or bookmaker, since now the chance for bookmakers and bettors would be balanced, i.e. 50% to 50%.

This results in the risk discount of the betting provider, which must still be included in these calculations. This means that the odds of the two most likely bets are lowered and the odds that are least likely are increased to create as much incentive as possible.

This gives the following odds: Home win Bayern Munich 1.17 Away win Werder Bremen 53.76 Tie 5.16

These are now the values at the beginning of the game that are offered to the customer. Of course the odds for the betting provider are better than for the customer and the provider will win. Statistically regarded the bet offerers pay out only 94% of all incomes as profits again, i.e. should a bet offerer within one year register income of €100m, only €94m are paid again out average. The €6m are thus the profit of the bookmaker. For anyone who has interest in sport bets generally should visit www.sportwetten.org, which contains further information about the world of sport bets.