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Lesson 1 of 115 min

Odds and probability

Odds are probability written differently, plus the bookmaker margin. We convert odds to percentages and show why the probabilities add up to more than a hundred.

Odds look like a payout multiplier: stake 1000, odds of 2.50, win — you get 2500 back. But it is far more useful to read them as a probability the outcome has been assigned.

Converting to percentages

probability = 1 / odds × 100%

Odds of 2.50 mean 1 / 2.50 = 0.40, that is 40%. Odds of 1.50 mean 67%. Odds of 10.00 mean 10%. This is the core skill: seeing 1.85 not as “almost double” but as “about 54%”.

Why look at it that way. A bet is not guessing the winner, it is a transaction: you buy an outcome at a price the market has set. The only question is whether you agree with that price. You can answer it only by converting the price into a probability and comparing it with your own estimate.

Why the total is more than 100%

Take a match priced at 2.20 for the home side, 3.40 for the draw and 3.30 for the away side. Converting:

  • home: 1 / 2.20 = 45.5%
  • draw: 1 / 3.40 = 29.4%
  • away: 1 / 3.30 = 30.3%

The total is 105.2%. Yet exactly one of the three outcomes will happen, so the real probabilities add up to precisely 100%. The extra 5.2% is the margin, the bookmaker’s mark-up. It is built into every price and does not depend on whether you win.

The practical conclusion is unpleasant, but better learned early: betting at random loses you the margin on average, every time. Not because of bad luck, but because that is how the arithmetic works. There is exactly one way to beat a bookmaker — to systematically find outcomes whose true probability is higher than the price implies.

Margins vary a lot

On match results in top leagues the margin is usually 2–5%. On exotic markets — corners in a third division, an individual player’s statistics — it easily reaches 10–15%. The higher the margin, the further ahead of the market you must be just to break even.

That is why match pages show lines from several bookmakers: the gap between them is the gap in mark-up. A separate article explains how odds move from the opening line to kick-off, and why the movement matters more than the number itself.

What to do with this next

For now the habit is enough: whenever you see odds, convert them to a percentage in your head. Next we cover markets — what people actually bet on besides a team winning.

What to remember

Odds of 2.50 mean an estimated probability of 40%. Across all outcomes these estimates always add up to more than 100%, and the difference is the bookmaker margin.