How to Read Betting Odds in Canada: Decimal vs American Explained

How do Decimal Odds Work 

The most common odds that bettors in Canada can expect to regularly come across are decimal odds. These are perceived as easier to understand especially when it comes to favourites and underdogs. 

Decimal odds represent the amount that betors can potentially take home for every $1 that they wager. This is how decimal odds look:

Example:

• Team A: 4.00

• Team B: 1.3

So, if you bet $100 on Team A to win, the potential payout could be $400. This includes the initial stake, so would be a profit of $300. Similarly, if you bet $100 on Team B to win, if the bet was successful you could receive a total payout of $130, a $30 profit.

The higher the decimal odds means the less probable it is that a team will win, and vice versa.

How do American Odds Work

Canadian bettors can also expect to come across some selections showing American odds. Also referred to as ‘Moneyline Odds’, these are odds that are represented as a three-digit number, with a plus or a minus sign in front of it.

The odds will work as follows:

Favourites are the side with a (-) sign, with the number showing how much you need to bet to win $100. 

Underdogs will feature a (+) sign, showing how much you will win if you bet $100.

Example: 

• Team A: -150

• Team B: +200

To put it simply, in this example, Team A, with odds of -150, would require a bet of $150 to win $100. Team B, with odds of +200, would need a $100 bet to win $200. 

The larger the gap between the favourite and underdog odds, the higher the favourite's chances are of winning according the sportsbook.

How to Convert Betting Odds

If a sportsbook that you have chosen in Canada uses American odds, there are ways in which bettors can calculate what the odds would be in decimal odds form.

American Odds to Decimal Odds

To convert American betting odds into decimal odds, there is a simple process that bettors can follow and a handy formula.

• (American Odds / 100) + 1 = decimal odds.

• 1 - (100 / American Odds) = decimal odds.

If the odds on a selection you are looking are are positive, for example +120, to work out the decimal odds bettors would do: +120, you would do (120 / 100) + 1 = 2.20.

If the odds on a selection are negative, -140, the calculation would be: 1 - (100 / -140) = 1.71. 

Decimal Odds to American Odds

For those who may be used to American odds and want to change the decimal odds they have been presented with, just follow the following steps.

For odds that are 2.00 or more: US odds = (Decimal - 1) x 100

For decimal odds of 2.50: (2.50 - 1) x 100 = 1.50 x 100 = +150

For odds that are 2.00 and less: US odds = (-100) / (Decimal - 1)

For decimal odds of 1.50: (-100) / (1.50 - 1) = (-100) / 0.50 = -200

What to look for with Betting Odds

When deciding what betting odds to wager on, there are some key things to keep in mind to ensure you get the most out of your betting experience.

Compare bookmakers - take the time to look at the odds available across several different sportsbook. Before placing your wager on the first set of odds you see, check that another platform does not have higher odds for the same where you could see improved returns should your bet be a success.

Look for value bets - take a look around at betting sites to see if you can identify any potential value bets. These are odds that a platform could have mis priced where you knowledge or research is telling you otherwise. 

Convert to your preferred odds - if you are at a betting site with American odds rather than decimal odds and you are more accustomed to the latter, use the formulas above to convert the odds to your preferred way of betting and understanding to ensure you are placing the most informed bets.

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