American Odds | What Are US Moneyline Odds? How Do They Work?

Posted on by Toby @ Punter2Pro
  • American odds represent the amount that can be won from a $100 stake, or the amount that must be staked to win $100.
American Odds | What Are US Moneyline Odds? How Do They Work?

American odds represent the amount that can be won from a $100 stake, or the amount that must be staked to win $100

What Are American Odds?

US odds, also known as American odds or moneyline odds, are commonly used at Sportsbooks operating in the United States and Canada. They indicate the amount that needs to be staked in order to win $100, or the amount that will be won for a $100 stake.

In American odds, positive and negative numbers are used to indicate the underdogs and favourites in a sporting event.

When a team or player is labeled with a positive number, such as +200, it means they are the underdogs, and the number represents the amount of profit that would be made on a $100 bet. So, if a bettor places a $100 wager on a team with odds of +200, and they win, they would receive a total payout of $300, which includes the $100 stake and a $200 profit.

On the other hand, when a team or player is labelled with a negative number, such as -200, it means they are the favourites, and the number represents the amount that needs to be wagered to win $100. So, if a bettor wants to bet on a team with odds of -200, they would need to wager $200 to win $100 in profit. If they win the bet, they would receive a total payout of $300, which includes the $200 stake and a $100 profit.

Therefore positive numbers represent underdogs, and the higher the number, the greater the potential payout. Negative numbers represent favourites, and the lower the number, the greater the likelihood of winning, but the lower the potential payout.

Calculating potential profit using American odds is not quite as simple as other odds formats as there are two separate calculations for positive and negative odds.

For positive odds, the formula for calculating profit is:

Profit = (Odds / 100) x Stake

For negative odds, the formula for calculating profit is:

Profit = (-100 / Odds) x Stake

In both cases the stake needs to be added to the profit in order to calculate the return. See the three examples further down.

To calculate the implied probability of American odds, use the following formulas:

  • For positive odds, the formula for implied probability is: (100 / (odds + 100)) * 100
  • For negative odds, the formula for implied probability is: (odds / (odds – 100)) * 100

For example, for odds of -120, the implied probability would be (-120 / (-120 – 100)) * 100 = 54.55%.

'Moneyline' Definition

In the US, the term ‘Moneyline’ is often used interchangeably with ‘odds to win’, and represents the amount that a bettor would need to wager in order to win $100 on a favourite or the potential profit on a $100 wager on an underdog.

While Moneyline bets are associated with American odds, the same bets can also be represented using other odds formats such as decimal or fractional odds.

Example 1

Bet on the Dallas Cowboys to win the Super Bowl at +1200 odds with a $100 stake:

  • Return = ((odds / 100) x stake) + stake = ((1200 / 100) x $100) + $100 = $1200 + $100 = $1300
  • Profit = (odds / 100) x stake = $1200

Example 2

Bet on the Los Angeles Lakers to beat the Brooklyn Nets at -150 odds with a $200 stake:

  • Return = ((-100 / Odds) x stake) + stake = ((-100 / -150) x $200) + $200 = $133.33 + $200 = $333.33
  • Profit = (-100 / Odds) x stake = $133.33

Example 3

Bet on the Boston Red Sox to lose to the New York Yankees at +175 odds with a $50 stake:

  • Return = ((odds / 100) x stake) + stake = ((175 / 100) x $50) + $50 = $87.50 + $50 = $137.50
  • Profit = (odds / 100) x stake = $87.50

Pros & Cons of American Odds

American odds have some pros and cons to be aware of:

Pros

  • Clear Indication of Favourite and Underdog

    The positive and negative numbers make it clear which team is the favourite and which is the underdog, while the odds provide an indication of the potential payout.

  • Easy to Calculate Payouts

    The odds indicate the amount of profit that can be won for every $100 wagered, or what must be wagered to win $00. This means that bettors can quickly determine their potential winnings without having to do complex calculations.

  • Useful for American Sports

    American odds are the standard format used in the United States. This means that bettors who are familiar with American odds will have no trouble finding a sportsbook that uses this format.

Cons

  • Confusing for Beginners

    While American odds are easy to understand once you are familiar with them, they can be confusing for beginners to understand and calculate payouts.

  • Difficult to Compare to Other Odds Formats

    Odds in American format are not easily comparable to those in decimal or fractional odds. They'll need to be converted first.

  • Limited International Appeal

    While American odds are popular in North America and Canada, they are not widely used in other parts of the world, which can make it harder to compare odds across different sportsbooks and betting platforms.

More Odds Formats

Decimal Odds | What Are Decimal Odds? How Do They Work?
Fractional Odds | What Are Fractional Odds? How Do They Work?
Hong Kong Odds | What Are HK Odds? How Do They Work?
Malaysian Odds | What Are Malay Odds? How Do They Work?
Indonesian Odds | What Are Indonesian Odds? How Do They Work?
Implied Probability | The Chance Of An Event Occurring
Toby @ Punter2Pro
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