Sports Betting: Things You Need to Know to Get Started
Sports Betting: Getting Started & Terms to Know
If you’re looking for an adrenaline rush, it might be time to take game day to a whole new level of competition. By participating in competitive sports betting, you get the chance to play alongside your favorite team and, with the right strategy and a little bit of luck, you might even win. But before you start placing bets, we’re sharing a beginner-level breakdown of what online betting is, how to read the odds and some terms you need to know in order to bet with confidence.
What is Sports Betting?
Sports betting refers to the activity of placing a wager on an uncertain outcome of a sporting event, and with the convenience of online betting, it’s easier than ever to get in on the action. Today, it’s possible for people to place bets on a wide variety of sports and markets, all from the comfort of their own homes! But before you start spending money, it’s important to understand the odds.
Knowing the Odds
In betting, odds are the numbers used to represent the likelihood of a particular outcome. If you’re new to betting, you might have questions about how scores and odds are displayed and what those numbers mean. Let’s go over the three most common ways to present betting odds¹:
- American odds: American odds are represented as positive or negative numbers. For example, +150 or -200. A positive number, such as +150, indicates that for every $100 bet, you will win $150 if the bet is successful. A negative number, like -200, means that you would need to bet $200 to win $100. If your bet is unsuccessful, you lose your initial bet amount and do not receive any winnings.
- Decimal odds: Decimal odds are represented as a decimal number. For example, 2.50 or 1.67. To calculate potential winnings for this method, you would simply multiply the stake by the decimal odds. For example, if you bet $100 on odds of 2.50, you would win $250 if the bet is successful. If the bet is unsuccessful, you lose your initial bet amount and do not receive any winnings.
- Fractional odds: Fractional odds are represented as a fraction, such as 3/1 or 4/9. To calculate potential winnings, you would multiply the stake by the numerator of the fraction, then divide by the denominator. In this case, if you bet $100 on odds of 3/1, you will win $300 if the bet is successful. If the bet is unsuccessful, you lose your initial bet amount and do not receive any winnings.
Remember that odds may change depending on when you place your bet and the events that are happening in the game, so you always want to pay attention to the most current numbers when placing a bet. Additionally, there’s always a risk that your bets may not be successful. If the team or outcome you bet on doesn’t win, you will lose the money you wagered. It’s important to consider your bets, set a budget and always gamble responsibly.
More to Know
Before you start placing bets, it’s also necessary to understand how the process of betting works and what additional fees to expect. In sports betting, the total amount of money wagered by all bettors on a single event is called the “handle,” and the sportsbook keeps a percentage of those funds as their profit, known as the “hold.” When you place a bet, the sportsbook also charges a fee for accepting the wager, a commission known as the “vigorish,” “vig” or “juice.” This means, if you place a wager and your bet wins, the sportsbook will pay you the amount that you won, as well as return your full original bet. However, if your bet loses, the sportsbook keeps your wager and vigorish, and you don’t receive any winnings from the event.
Online Betting Glossary
When betting online or in-person, knowing the lingo can be just as important as knowing the game. Understand the action and speak like a pro with these common sports betting terms²:
- Action: a wager of any kind
- Added Game: a game that isn’t part of the typical menu of wager offerings
- Bankroll: the total amount of money set aside for betting
- Bet: any wager involving money
- Bookmaker (also called Sportsbook): the organization that accepts and pays off bets; a dedicated space for bettors and sports fans to meet and place bets on events around the globe
- Buying: paying an additional price to improve the point spread
- Chalk: a team favored with a significant point spread
- Cover: when a team wins by more than the point spread predicted by a sportsbook
- Dime: a wager of $1,000
- Favorite: the team that is more likely to win the game
- First-half Bet: a bet determined by the score of the first half of the game only
- Futures Betting: a wager placed on an event far in the future
- Half-time Bet: a bet determined by points scored in the second half of the game only
- Handle: the total amount of money wagered by bettors
- Hedging: a bet that a bettor places on the opposite side of another bet the bettor has placed
- Hold: the percentage of money a sportsbook keeps for every dollar wagered
- Laying the Points (also called Laying the Price): describes the spread for a favored team
- Limit: the total amount a sportsbook will allow its bettors to wager on an event
- Line: the odds of a wager or event
- Lock: describes a sure bet or a sure winner
- Longshot: a team thought very unlikely to win
- Moneyline: a simple and straightforward wager to predict the winning team or player, regardless of final score
- Nickle: a wager of $500
- No Action: a wager where the original bet amount is refunded
- Odds: numbers set by the sportsbook that allow you to calculate the possible return on a wager
- Off the Board: a game in which no bets are being accepted
- Opening Line: The earliest line posted for a particular event
- Over/Under: a wager on the total points, goals or runs in a game from both teams combined
- Parlay or Multiple Bets: a series of bets on multiple events in which the winnings of one bet are invested into the next. All events must win for the bettor to win the wager
- Picks: plays and suggestions for certain events
- Point Spread: a handicap set by bookmakers to keep the betting balanced, where the underdog team is given a certain point advantage, and the favorite team a point disadvantage³
- Price: the cost of a particular bet
- Propositions (also called Prop Bets): a wager on the outcome of a certain event within a given game
- Push: a wager that results in a tie
- Round Robin: a series of parlays
- Sports Line: a bookmaker’s prediction of the likely outcome of the game. The two types of lines are point spreads and moneylines
- Straight Bet: an individual wager on a single event
- Taking the Points (also known as Taking the Price): describes the spread for an underdog team
- Teaser Bet: a wager in which the point spread is measured on two or more games
- Underdog: the team that is expected to lose the game
- Vigorish or Vig (also called Juice): the commission or fee charged by the bookmaker
Is Online Betting Legal?
The landscape of sports betting has been changing rapidly, and more and more states are joining the game. Since the regulations vary, it’s important to check your state's specific laws⁴ before placing your bets.
Now that you know how to read the odds and speak the language, you’re on your way to making informed and successful actions. Head to our Sports Betting Page to bet now and join in on the fun!
Sources:
- “How American Odds Work in Sports Betting.” Legal Sports Report.
- “Sports Betting Terms & Glossary.” Action Network.
- “What is a Point Spread Bet?” Sports Handle.
- “States Where Sports Betting is Legal.” Forbes.