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.

What Are American Odds?

American odds, sometimes referred to as moneyline odds or US odds, are the standard odds format used by most sportsbooks in the United States. They indicate either the profit that can be won from a $100 stake or the amount that must be staked to win $100.

American odds use positive and negative numbers to distinguish between underdogs and favourites.

  • Positive odds, such as +200, indicate the profit that would be generated from a successful $100 bet. For example, a $100 wager at +200 would return $300 in total, consisting of the original $100 stake plus $200 profit.
  • Negative odds, such as -200, indicate the amount that must be staked to generate $100 profit. For example, a $200 wager at -200 would return $300 in total, consisting of the original $200 stake plus $100 profit.

Because positive and negative prices immediately identify underdogs and favourites, many American sports bettors find this format intuitive once they become familiar with it. However, it can appear more complex than decimal odds because different calculations are required for positive and negative prices.

How To Calculate Returns From American Odds

To calculate the profit from an American odds bet, use the following formulas.

Positive Odds:

Profit = (American Odds ÷ 100) × Stake

For example, a $50 bet at odds of +200 would generate:

  • Profit = (200 ÷ 100) × $50 = $100
  • Total Return = $100 + $50 = $150

Negative Odds:

Profit = (100 ÷ American Odds) × Stake

For negative odds, use the numerical value of the odds (without the minus sign).

For example, a $100 bet at odds of -200 would generate:

  • Profit = (100 ÷ 200) × $100 = $50
  • Total Return = $50 + $100 = $150

Most modern betting sites calculate returns automatically, but understanding the formula can help when comparing prices and assessing potential payouts.

American Odds & Implied Probability

American odds can be converted into an implied probability, which represents the likelihood of an outcome occurring according to the bookmaker’s price. The formulas are:

Positive Odds:

Implied Probability = 100 ÷ (American Odds + 100) × 100

Negative Odds:

Implied Probability = American Odds ÷ (American Odds + 100) × 100

For negative odds, use the numerical value of the odds (without the minus sign).

Examples:

  • +200 = 33.33%
  • +100 = 50.00%
  • -110 = 52.38%
  • -200 = 66.67%

Implied probability can be useful when comparing betting opportunities and assessing value. However, bookmakers build a profit margin into their odds, meaning the implied probability does not necessarily represent the true probability of an outcome occurring.

To learn more about this concept, see our guide to Implied Probability.

Pros & Cons of American Odds

American odds are the standard betting format used throughout much of North America and are particularly popular with US sports bettors. However, they can appear less intuitive than other odds formats for those unfamiliar with the system.

Pros

  • Clearly Identifies Favourites And Underdogs

    Positive and negative numbers immediately indicate which selection is the favourite and which is the underdog. Many bettors find this useful when quickly assessing a market.

  • Widely Used In North America

    American odds are the standard format used by most US sportsbooks and sports media outlets. This makes them familiar to bettors who primarily follow North American sports.

  • Common In American Sports Media

    American odds are widely used by US sportsbooks, television broadcasts, betting content, and sports media. Bettors who follow North American sports will encounter the format regularly.

  • Highlights Potential Risk And Reward

    The relationship between stake and potential profit is built directly into the odds. This can help bettors understand the balance between risk and reward once they become familiar with the format.

Cons

  • Can Be Confusing For Beginners

    American odds use positive and negative numbers, which can appear more complicated than decimal odds. Many new bettors require time to become comfortable with the format.

  • Two Different Calculation Methods

    Positive and negative odds require different formulas when calculating profits and implied probabilities. This makes American odds less straightforward than some alternative formats.

  • Less Common Internationally

    Outside North America, decimal odds are generally more widely used. As a result, many international bettors may be unfamiliar with American pricing.

  • Harder To Compare Prices Quickly

    Comparing odds such as +175 and -190 is often less intuitive than comparing decimal prices. Some bettors find it easier to identify value when using a format based on a single number.

Find The Right Betting Site

More Odds Formats

Implied Probability | The Chance Of An Event Occurring
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?
Toby @ Punter2Pro
Latest posts by Toby @ Punter2Pro (see all)