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If you want to calculate the possible betting profit, you take the sports betting odds and multiply them with your bet. We give an example for this:

FC Bayern Munich plays against Schalke 04. Due to the home advantage as well as the form, the betting provider sees the team from Bavaria as the favorite. The probability of a victory of FC Bayern is estimated by the bookmakers at 50%, a victory of Schalke in the away match only at 20% and the probability of a draw at 30%. The odds are calculated according to a formula:

1 / probability = fair odds

From this so-called fair odds bookmakers deduct their own profit margin, which is usually between three and 10%.

The following odds result from the aforementioned example:

Victory FC Bayern Munich - 50% - betting odds 2.0

Draw - 30 % - betting odds 3.33

Victory Schalke 04 - 20% - betting odds 5.0

No matter what the result of the match is, the bookmaker will get back his paid profit by the 1000 € bet.

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Thus, Thus, If you want to know how a betting odds is structured, our following explanation will make it a little easier: from the bookmaker's point of view, we assume that a total of €1000 in bets were placed worldwide on the aforementioned party of Bayern against Schalke. About 50% of the bets were placed on the victory of FC Bayern Munich. 30% assumed that a draw will take place and only 20% a victory for Schalke. If the betting provider now manages to determine his odds optimally, then after the final whistle of the match he has distributed exactly the profit that he has previously taken as a bet. Because the profit distribution is calculated as follows:

Win Bayern worldwide bet € 500 x 2.0 = € 1000

Draw worldwide bet 300 € x 3.33 = 1000 €

Victory Schalke 04 worldwide bet 200 € x 5.0 = 1000 €

Thus, no matter what the result of the match is, the bookmaker will get back his paid profit by the 1000 € bet. However, this would not be a very lucrative business for the bookmaker, since he does not make any profit himself. For this reason, the bookmakers also deduct his profit margin from the betting odds. So instead of offering fair odds of 2.0, 3.33 or 5.0, the sportsbook deducts its planned profit (5% in our example). This changes the odds to 1.9 (2.0 x 0.95), 3.16 and 4.75. With this calculation of the odds, the betting provider generates an average profit of 5%. Source:

What do sports betting odds mean?

In order to better understand the question: "What do sports betting odds mean?", the rule of thumb also applies that a high odds is also associated with a higher risk for the customer and also for the bookmaker. This is because the greater the probability of a certain event occurring, the lower the odds. If bookmakers offer the same odds on a win as on a draw, then it is unclear which of the two events will occur. However, there is another difference, because there are variable and fixed odds.

fixed: no changes after the odds are set

variable: continuous changes in the course

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In the case of odds, it is worth taking a look at our comparison of Bundesliga odds, odds on the DFB Cup or the odds comparison of the corresponding sport. In the case of variable odds, these change over the course of time due to changes in the team's form or a change of coach. This is particularly noticeable in live betting, because here the odds change with every single new match situation. In general, once a betting slip has been placed, no change is possible.