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New punters aren’t always aware of how betting odds work and what they mean, but it’s important to know the basics so you know what you’re betting on.
Responsible gambling is important and it helps to be equipped with as much information as possible. We’ve put together a guide to what betting odds are and how they work. Betting terminology along with understanding types of bets are a good place to start.
The bookmakers offer odds to punters on particular outcomes and they are a mathematical representation of the likelihood of an outcome. In layman’s terms, betting odds are a reflection of how likely the bookies deem a result to be.
The most common way for the odds to be presented is as a fraction but decimal odds are also available and used primarily in exchange betting.
For example, if Denman is 3/1 to win the Cheltenham Gold Cup, the bookies think there’s a 25% chance that he finishes first. Kauto Star is 1/1 to win the same race and that means there’s a 50% chance that he wins, which is why we call it evens.
In a betting market for a horse race, a particular runner’s odds equate to a percentage of the entire market. Often a horse will be odds-on, which means the bookies believe there’s a greater than 50 per-cent chance that the horse in question wins.
It’s important to note that bookmakers odds always add up to more than 100% and this is what we call overround.
Bookmakers therefore have a certain profit margin built into the market. The overround percentage differs from market to market but a lower one represents better value for the punter.
We’ve added some examples of fractional odds below and explained what that means for the punter and how much profit their bets can return.
£10 - returns £15 (0.5x10 and your £10 stake)
Decimal odds work in the same way as fractional odds but they are just displayed in a different format. We’ve converted some decimal odds into factions below.
The majority of leading bookmakers will give you the option to display odds as fractions or decimals. If you are at the races however, and wish to convert a bookmaker’s fractional odds to decimals then you can use the following calculation:
To convert odds displayed as 5/1 you divide 5 by 1 and add 1:
5/1 = 5 + 1 = 6.0
Shorter odds of 6/4:
6/4 = 1.5 + 1 = 2.5
One of the most fun parts of attending the races is choosing your selection in the parade ring and placing a bet on your horse. Betting adds to the fun, interest and intrigue around a horse race.
Here is an example a horse racing bet:
€10 x €11 = €110
You can also use our bet calculator if you need help with different types of bets.
If this guide was useful, you can check what Irishracing has in store for you. With many welcome offers we promote on our site, we are sure you will find one suited to your taste.
Betting odds show the likelihood of a horse winning and your potential payout. In Ireland, fractional odds (e.g., 5/1) are common, meaning a €1 bet at 5/1 returns €6 (€5 profit + €1 stake). Decimal odds (e.g., 6.00) include your stake in the payout. American odds are rare but used for some international races. Learn to read odds to bet smarter on races like the Grand National with top Irish bookmakers like Paddy Power.
Implied probability shows the chance of a horse winning based on its odds. For fractional odds like 2/1, calculate it as: Denominator / (Denominator + Numerator) * 100 = 1 / (1 + 2) * 100 = 33.33%. For decimal odds like 3.00, it’s 1 / 3.00 * 100 = 33.33%. Understanding this helps you spot value bets at Irish races like Cheltenham.
Ante-post odds are offered for horse races well in advance, like the Irish Derby. They’re often higher but riskier, as you lose your stake if the horse doesn’t run. Unlike starting price (SP) odds set at race time, ante-post betting lets you lock in value early. Check ante-post odds with trusted UK and Irish bookmakers like bet365.
For more information on types of bets along with how to place a bet and horse racing betting terminology, see the following links:
