how does money line betting work
How Does Moneyline Betting Work?
Moneyline bets are the most common type of sports betting wager offered by any online sportsbook. As you explore betting options for your favorite events, you will almost always see moneyline odds. So, what are moneyline bets, how do they work, and when should you use them?
Understanding Moneyline Odds
To understand how moneyline betting works, you first need to understand how to read moneyline odds. Moneyline odds, also known as American odds, are the most common way to express betting odds in the United States; They are displayed as a number with a plus sign (+) or a minus sign (-) in front of it.
A minus sign (-) before the odds indicates the favorite to win the event. The number shows how much money you need to bet to win $100. For example, if a team has moneyline odds of -200, you would need to bet $200 to win $100. If you bet $100, you would win $50 (plus your original $100 bet).
A plus sign (+) before the odds indicates the underdog to win the event. The number shows how much money you would win if you bet $100. For example, if a team has moneyline odds of +200, you would win $200 if you bet $100. If you bet $50, you would win $100 (plus your original $50 bet).
In some cases, the moneyline odds will be listed as even, or +100/-100. This means that the sportsbook sees both sides as having an equal chance of winning. If you bet $100 on either side, you would win $100 (plus your original $100 bet).
Implied Probability
Moneyline odds can also be used to calculate the implied probability of an event happening. Implied probability is the likelihood of an outcome occurring, based on the odds that are offered. The higher the negative odds, the higher the implied probability of the favorite winning. The higher the positive odds, the lower the implied probability of the underdog winning.
For example, a team with -200 moneyline odds has an implied probability of winning of 66.67%. This means that the sportsbook believes the team has a 66.67% chance of winning the game. A team with +200 moneyline odds has an implied probability of winning of 33.33%. This means that the sportsbook believes the team has a 33.33% chance of winning the game.
Favorites and Underdogs
In moneyline betting, the favorite is the team or individual that is expected to win the game or event. The underdog is the team or individual that is not expected to win. This is determined by the oddsmakers at the sportsbook, who use a variety of factors to set the odds, including⁚
- Team or player rankings
- Head-to-head records
- Injuries
- Home-field advantage
- Public perception
The favorite will always have negative moneyline odds, while the underdog will always have positive moneyline odds. The bigger the favorite, the smaller the payout will be if you bet on them to win. The bigger the underdog, the bigger the payout will be if you bet on them to win.
For example, let’s say the New England Patriots are playing the New York Jets. The Patriots are the heavy favorites, with moneyline odds of -300. The Jets are the underdogs, with moneyline odds of +250.
If you bet $100 on the Patriots to win, you would win $33.33 if they win the game. This is because you have to bet more money to win less money when you bet on the favorite.
If you bet $100 on the Jets to win, you would win $250 if they win the game. This is because you stand to win more money when you bet on the underdog.
Ultimately, the decision of whether to bet on the favorite or the underdog is up to you. There is no right or wrong answer, as it depends on your risk tolerance and your assessment of the game or event.
Calculating Payouts and Potential Profits
Calculating potential payouts for moneyline bets is a straightforward process that depends on whether you’re betting on the favorite (negative odds) or the underdog (positive odds). Here’s how it works⁚
Negative Odds (Favorites)⁚
To calculate your potential profit when betting on a favorite, divide your wager amount by the absolute value of the odds and then multiply by 100.
For example, if you bet $200 on a team with odds of -250⁚
- Divide the wager by the absolute value of the odds⁚ $200 / 250 = $0.80
- Multiply the result by 100⁚ $0.80 * 100 = $80
This means your potential profit would be $80, and you would receive a total payout of $280 (your original $200 wager plus the $80 profit) if your bet wins.
Positive Odds (Underdogs)⁚
To calculate your potential profit when betting on an underdog, multiply your wager amount by the odds and then divide by 100.
For example, if you bet $100 on a team with odds of +180⁚
- Multiply the wager by the odds⁚ $100 * 180 = $180
- Divide the result by 100⁚ $180 / 100 = $180
This means your potential profit would be $180, and you would receive a total payout of $280 (your original $100 wager plus the $180 profit) if your bet wins.
Remember that these calculations represent your potential profit and do not include your initial stake, which is returned to you if your bet is successful. It’s crucial to understand the relationship between odds and potential payouts to make informed betting decisions.
Three-Way Moneyline Bets and Draws
While moneyline bets typically involve picking one of two outright winners, certain sports introduce the possibility of a draw, leading to three-way moneyline bets. This option adds a layer of complexity and requires a slightly different approach to understanding odds and payouts.
Understanding Three-Way Moneyline Odds⁚
In a three-way moneyline bet, you’ll see three sets of odds presented⁚ one for each team or competitor to win and one for the draw. The odds for the draw will vary depending on the likelihood of a tie in that particular sport or matchup.
How it Works⁚
- Team A Win⁚ You win if Team A wins the game.
- Team B Win⁚ You win if Team B wins the game.
- Draw⁚ You win if the game ends in a tie.
If you bet on either team to win and the game ends in a draw, you lose the bet. Similarly, if you bet on the draw, and one of the teams wins, you lose.
Examples⁚
Let’s consider a soccer match between Team A and Team B⁚
- Team A⁚ +150
- Draw⁚ +220
- Team B⁚ +180
In this scenario, a $100 bet on each outcome would yield the following payouts⁚
- Team A Win⁚ $250 (including your initial $100 stake)
- Draw⁚ $320 (including your initial $100 stake)
- Team B Win⁚ $280 (including your initial $100 stake)
As with traditional moneyline bets, the odds reflect the perceived probability of each outcome. Lower odds for a draw indicate a higher likelihood of a tie, while higher odds suggest a tie is less likely.
Three-way moneyline bets offer an intriguing option for sports where draws are common, allowing you to capitalize on the possibility of a tied outcome.