American vs Decimal Odds: The Ultimate Guide for Sports Bettors

By Tommy D,  Betting Analyst with Over 3 Decades in the Trenches

Imagine this: you’re sitting in front of your computer, ready to place your first bet. The game is on, and you’re excited about the opportunity to make some money, but then you see two different types of odds—American odds and Decimal odds—and you’re unsure which one to use. Which is better? Which is easier to understand? Which will help you make more informed bets?

Let’s break it down. Betting odds can feel like a maze at first, but trust me, once you understand the difference between American and Decimal odds, everything will click. As someone who’s spent over a decade in the betting world, I can tell you that understanding these odds is the key to becoming a better, more confident bettor. Let’s dive into it and see which of these odds formats works best for you.

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The Basics of American Odds

To understand the difference, we first need to get a solid grip on what American odds are. American odds, sometimes called moneyline odds, are the most common odds format in the U.S. They can either be positive (+) or negative (-), and here’s how it works:

• Positive American Odds (+): These odds show you how much profit you can make on a $100 bet. For example, if you see odds of +150, that means for every $100 you bet, you would win $150 in profit. So if you placed a $50 bet at +150 odds, you’d win $75 if your bet is successful. Easy, right?

• Negative American Odds (-): These odds show you how much you need to bet in order to win $100. For instance, if you see odds of -200, this means you need to bet $200 in order to make a profit of $100. In this case, your $50 bet would yield a profit of $25. The negative odds typically represent favorites—teams or outcomes that are more likely to win.
  

The beauty of American odds lies in how they reflect risk and reward. If a team is the underdog, you’ll see positive odds, and the reward is higher since the risk is greater. On the other hand, the favorite team will have negative odds, which are less risky but also offer a lower payout.

Enjoying our content? Take a deep look into our other topics about betting odds:

– Understanding Betting Odds

– How to read betting odds

– What is implied probability in betting

– What is the vig / juice

– Betting lines explained

The Simplicity of Decimal Odds

Now, let’s take a look at Decimal odds, which are more common in Europe, Canada, and Australia. Unlike American odds, Decimal odds are much more straightforward and easier to understand, especially for beginners. The number you see represents how much you’ll get back for every $1 wagered, including your initial stake.

For example, if you see 3.50 as the decimal odds for a team, this means that for every $1 you bet, you would receive $3.50 if the bet wins. So, if you place a $100 bet at 3.50 odds, you would get $350 back, which is your original $100 stake plus $250 in profit. Simple, right?

The biggest advantage of Decimal odds is that they are easy to calculate. You don’t have to worry about converting or figuring out how much to bet—just multiply your wager by the decimal number. It’s a clean, efficient format that works well for anyone who wants to know exactly how much they can win.

How to Convert Between American and Decimal Odds

Let’s say you’re sitting at your computer, looking at a website that uses Decimal odds, but you’ve been used to American odds for years. Or maybe you’re just curious about how to switch between them. Here’s the magic formula for converting:

• From American to Decimal:
  
  • If the odds are positive, you simply add 100 to the American odds, then divide by 100.
    
    • Example: +150 → (150 + 100) / 100 = 2.50
      
  • If the odds are negative, you divide the absolute value of the odds by the absolute value of the odds minus 100, then add 1.
    
    • Example: -200 → (200 / (200 + 100)) + 1 = 1.50
      
• From Decimal to American:
  
  • If the Decimal odds are greater than 2.00, you can convert them to positive American odds by subtracting 1 from the decimal and then multiplying by 100.
    
    • Example: 3.50 → (3.50 – 1) * 100 = +250
      
  • If the Decimal odds are less than 2.00, you can convert them to negative American odds by dividing 100 by the decimal minus 1.
    
    • Example: 1.50 → (100 / (1.50 – 1)) = -200
      

By now, you should have a better understanding of how both odds formats work and how to convert them. It’s really not as complicated as it seems, and once you get the hang of it, it becomes second nature.

Which Odds Format is Better?

The question on everyone’s mind: Which one is better—American or Decimal odds?

Well, it depends on where you’re betting and what you’re comfortable with. American odds are popular in the U.S., especially when it comes to betting on sports like football, basketball, and baseball. They’re great if you want to focus on potential profits relative to your bet and are familiar with positive and negative numbers.

On the other hand, Decimal odds are much easier to understand and calculate, making them ideal for beginners or bettors who are more comfortable with a straightforward approach. They are especially popular in Europe and Canada, where bettors can quickly assess how much they stand to win for every unit wagered. If you’re betting internationally or through an online sportsbook that uses Decimal odds, this is the format you’ll likely encounter.

The Psychological Impact of Odds Formats

Both American and Decimal odds can have a psychological impact on how you approach a bet. With American odds, seeing large positive numbers can be exciting because it signals high potential payouts. This could make you feel like you’re getting a big reward for your risk, which might make betting feel more thrilling. However, the negative American odds could also discourage some bettors because it shows how much you have to risk in order to make a small profit.

In contrast, Decimal odds are often seen as more straightforward, which can make bettors feel more confident, especially when they’re starting out. The simplicity helps them focus on the essentials—how much they can win per unit wagered—without getting bogged down in complex calculations.

Conclusion: Your Betting Journey Begins

So, whether you’re dealing with American or Decimal odds, the most important thing is that you feel confident in your bets. American odds can be a bit more challenging to grasp at first, but they offer a rich, traditional betting experience that millions of bettors are accustomed to. Decimal odds, on the other hand, are simple and efficient, making them ideal for anyone who values clarity and ease of use.

Understanding the difference between these two formats is just the first step in your sports betting journey. The more you understand how the odds work, the more confident you’ll be in making your bets. And remember, the key to successful betting is not just in understanding the odds, but in making well-informed decisions, managing your bankroll, and betting responsibly.

So, next time you place a wager, choose the odds format that makes the most sense to you, and start building your betting strategy with confidence. No matter which format you use, the most important thing is to enjoy the thrill of the game while making smarter, more informed decisions along the way.

By now, you’ve got the tools to confidently tackle both American and Decimal odds. Whether you’re betting on your favorite sports team or just trying to get into the action, this knowledge will help guide your decisions and, ultimately, your success as a bettor. Happy betting!

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