Betting odds are an integral part of betting. With them, you can calculate the probability of all the possible outcomes, and also your expected profits based on how much you stake. If you're new to betting, but you've had the opportunity to visit various sports bookies, you would have surely noticed one thing – every single sportsbook has different betting odds. And sometimes, they are vastly dissimilar. But why is that so? Today, we will take a look at how betting odds are calculated and why.
Different Sports Bookies Have Different Betting Odds
Once you're a punter, betting odds are everywhere you go. Reading them, understanding what they mean and what to do when you see them will be second nature. But no two sports bookies have the exact same betting odds. Each of them will likely have their own calculation process and algorithm that they follow.
They would need to take in several factors to make those predictions. Thus, it is done in such a way that they reflect the probability of those outcomes happening that is expressed in numbers.
The values they end up with are therefore entirely subjective, and shouldn't be taken as the absolute truth. Here are the various factors a sportsbook takes into consideration.
1. Past statistics
If you want to know how a team would likely perform, take a look at their recent past. You will start to see an array of patterns emerge. Patterns like how specific groups tend to score only in the second half, how they never win games in specific stadiums. Or even the results of their previous matches, head to head statistics, and so on. These patterns can be used to make future predictions as history tends to repeat itself. You can gain a fair idea about probability percentages and betting odds.
2. Current statistics
As much as the past matters, current stats are just as vital. Some would say they are more critical. Naturally, present factors have a significant bearing on the outcome of a match. The past gives away only so much, but there can be new changes to line-ups, unexpected injuries, substitutions, etc. that can change the entire course of the match.
A team's current form is also vital. They could be tired or just having an off day, or they could be in great shape. Either way, current forms are a huge indicator of future outcomes.
3. The Sports Bookies Cut
Regardless of what the outcome is, whether you win or lose the wager, the sportsbook will get their cut. This is also known as the Vigorish, VIG for short, or the juice. The percentage of the cut differs from sportsbook to sportsbook. But most of them charge around 5%. This means that you will always lose out on a little bit of money every time you bet. If you were to calculate the sum of the probabilities on a single bet, you would find that they add up to more than 100%. This is because they also include the VIGClick here for further information