American Odds Explained

When you're new to sports betting, those +150 and -110 numbers on the screen can be confusing. But understanding how American odds work is key to knowing whether a wager is likely to pay off for you—and how much.

American odds serve as the price for a bet, showing what you risk to win or how much you win on a standard stake.

For negative numbers, the figure shows the amount a bettor risks to win $100. So -150 odds mean a $150 bet risks $150 and wins $100. Meanwhile, a +200 American odds price means a $100 bet wins an extra $200 for a $300 total return.

How to Read American Odds

Odds with a minus sign, like -150, show the amount needed to risk on a bet in order to win $100. For these, the number is the amount risked. So -150 odds mean a bettor risks $150 to win $100.

Odds with a plus sign, like +200, show the amount won on a $100 bet. For these, the number is the amount won. So +200 odds mean a $100 bet wins an extra $200 for a total return of $300.

Turning Odds into Probability

To understand the implied probability behind those odds, use a simple formula. For positive American odds, the implied probability is 100/(odds + 100) × 100.

So +200 odds imply a 33.3% chance of winning, calculated as 100 / (200 + 100) = 33.3%.

For negative odds, the formula is |odds| / (|odds| + 100) × 100. So -150 odds imply a 60% probability, using 150 / (150 + 100) = 60%. And -110 odds imply 52.38% probability from 110 / (110 + 100) = 52.38%.

Decimal Odds and Total Return

Decimal odds make payout math easier because they show the total return per $1 staked. The formula is 1 + 100/odds for negative odds, and 1 + odds/100 for positive.

So -150 converts to 1 + 100/150 = 1.667, and +200 converts to 1 + 200/100 = 3.00. Implied probability is 1 divided by the decimal odds, so 2.00 means 50%.

Where the Same Prices Appear

The American odds format appears on point spread bets as well. A line such as Team -7 (-110) means the team must win by more than 7 points, and the -110 is the price of that bet.

What the Margin Looks Like

Finally, American odds have a built-in house edge. When both sides of a market are priced at -110, their implied probabilities add up to 52.38% + 52.38% = 104.76%. The 4.76 points above 100% are the sportsbook's built-in margin, often called the vig.

Practical Reading Rule

When comparing sportsbooks, the better price for the same side is the higher positive number or the negative number closer to zero, for example -105 instead of -110.

When you see American odds on your sportsbook screen, focus on two numbers: the spread or total that sets the handicap, and the American odds price that shows the risk or payout. Use the formulas above to see what a price really implies, and bet responsibly.