How are the betting odds calculated?

The whole world of betting is based on odds. These numbers are the ones that have the power to make you rich or miserable. Generally speaking, the odds represent the chances of a certain event to occur.

The first records regarding probabilities dates back to the 16th century, when Girolamo Cardano made the first considerations. Other important names in mathematics contributed over time, but the foundation of the modern probability theory was set by Andrey Nikolaevich Kolmogorov.

In gambling the odds represent the money that the bookmaker will pay for that a winning bet on a certain event. The bookmaker calculates his odds starting from the statistic probabilities of the event.  For example after determining what the chances for a team to win really are, the bookmaker adds his profit margin and sets the displaying odds. The term used for the added profit margins is over-round.

The bookmaker adds his profit margin to all odds so the house will win no matter what is the sports event outcome. You can see the profit margin as a commission paid to the bookmaker for enabling you to bet on your favorites.

The bookmakers with the lowest commissions offer the higher odds. This means you can get more money for a winning bet. Knowing that, you should look for the best odds every time you want to place a bet. Don’t fall in the trap of the scam bookmakers that offer extremely good odds. You should stick to the biggest bookmakers because they are the most trustable and they also have the best odds.