Sports betting has been around for thousands of years and its origin is unknown. During the Roman times, spectators of various sport events such as chariot racing and gladiator fight made a bet on the outcome. Presently sports betting is worldwide and is worth more than £2 trillion, most of it generated by illegal gambling.
In the UK, it has been under control for decades and the rules relaxed by the 1960 Act legalizing off-course bookmakers. At present, it has a large market In the UK, and online sports betting market alone is worth £650 million with 2.1 million customers.
Let’s get into the details and let me do the explaining of the calculation method of betting odds at UK bookmakers. They are using the UK fractional odds format to display the bets chance of winning. It is quite different from the American odds and the decimal/European Odds. While the American odds computes how much stake to win a certain amount, the fractional odds show the total amount paid out to the bettors considering their stake plus the return of the original stake. The decimal odds, which is popular and used in Europe and other countries like Australia and Canada, shows the exact amount paid out if the bet wins. It is almost the same as the fractional odds in decimal format plus one.
Using the UK fractional odds, a 5/1 odds show that a £20 bet wins £100 plus the return of the original bet. If the odds are 1/5, the payout is £4 for a winning £20 stake. The way to announce a 5/1 fractional odds is “five-to-one” or “one-to five” if the odds show 1/5. To calculate winnings from fractional odds:
((Stake /denominator) x numerator) + Stake
For example, £10 staked at 7/2: ((£10/2) x 7) + £10 = £45
Good sports betting customers should familiarize themselves with the different odds format as most bookmaker websites display odds not only in one but also in several popular formats.