What are Decimal Odds?
Odds convert the probability of an event happening into the potential amount of money you will receive back if you bet on it and win. Decimal Odds (also widely known as Digital Odds) is 1 of the 3 ways to express those odds into betting terms.
Whether you are betting online or at a land-based establishment, whether it is a casino, poker room, bingo hall, or at the track, it is important to understand the odds and how they work. It is also important to be able to read and understand them, as well as how to interpret the different formats at a glance.
Decimal Odds Explained
Decimal Odds is a term also known as European Odds, Digital Odds, and Continental Odds. Decimal Odds is a popular form of probability calculation in Europe, Australia, New Zealand, and Canada, thanks to being much easier to understand and work with. Bettors can easily spot favorites and underdogs in an instant, just by looking at the numbers.
The potential return on a stake is calculated as shown below:
Total return = Stake x Decimal odds number
$220 = $100 x 2.20
The decimal odds number refers to your potential winnings for every $1 wagered. For decimal odds, the total return amount also includes the original amount wagered, rather than just the profit, so there is no need to add your stake back in, making final calculations easier in Decimal Odds.
The 3 most used formats that betting odds are expressed in are Decimal or Digital, Fractional, and American. There is no difference in terms of the final payouts.
Decimal or Digital Odds: Expressed in the amount you can win for every dollar wagered.
Fractional Odds: Expressed as the ratio of the amount won (profit) to the amount wagered.
American Odds: Expressed with a positive (+) or negative (-) symbol, to indicate either the amount you need to wager to win $100, or the amount you win for every $100 wagered.
Once you have mastered how these formats work, you can progress towards more interesting levels of gameplay, and practice your winning strategies as you gain more and more experience.