How to Read and Understand Gambling Odds Better

Jessica Matabola24 July , 2025

If you enjoy betting on sports, playing the Lotto, or trying your luck at a casino, one skill can improve your chances: you need to understand gambling odds. Odds aren’t just numbers; they tell you how likely an outcome is and how much money you could win.

This guide breaks down the different types of odds, how to calculate your potential winnings, and how to find better value when betting. Once you understand how odds work, you can make smarter and more confident bets.

ALSO READ: Understanding Lottery Odds and How They Work

What Are Gambling Odds?

Gambling odds show the likelihood of a specific outcome and the payout if your bet wins. To understand gambling odds, you must recognize the three main types:

Decimal odds – Used by most South African sportsbooks
Fractional odds—Common in the UK and for horse racing
Moneyline odds—mostly used in the United States

South African bettors mostly see decimal odds, especially on platforms like Betway South Africa and Hollywoodbets.

How Decimal Odds Work

Decimal odds appear as numbers like 2.00, 1.75, or 3.50. They show your total return per R1 bet, including your stake.

Example:
If you bet R100 at odds of 2.50, you win:
R100 x 2.50 = R250 total (R150 profit + R100 stake)

When you understand gambling odds in decimal format, calculating returns becomes easy. These odds are straightforward and beginner-friendly.

Understanding Fractional Odds

Fractional odds appear like 5/1 or 6/4. They tell you how much profit you’ll make based on your bet.

Example:
Odds of 5/1 mean you’ll win R5 for every R1 you stake.
Odds of 6/4 mean you win R6 for every R4 staked.

While South African sportsbooks don’t use these often, knowing how they work helps when betting internationally or on horse racing.

Turn Odds into Probabilities

To fully understand gambling odds, learn how they reflect probability. You can convert decimal odds into a percentage chance with this formula:

Probability = (1 / Decimal Odds) × 100

Example:
Odds of 2.00 give you a:
(1 / 2.00) × 100 = 50% chance of winning

Knowing the implied probability helps you decide if a bet is worth it.

How Bookmakers Profit from Odds

Bookmakers build a margin into the odds, called the overround, to guarantee profit. This margin means the odds reflect a slightly lower return than the actual probability.

If you can spot when the odds underestimate a likely outcome, you’ve found a value bet. Bettors who understand gambling odds often look for these opportunities to improve their chances over time.

Lotto Odds Are Different

Lotto games like the South African Lotto and PowerBall use fixed odds. The chances of winning the jackpot are extremely low, around 1 in 20 million.

Still, these games attract players because of their huge payouts. If you want to check the latest odds and prize breakdowns, visit the National Lottery website.

Even in games of chance, it’s important to understand gambling odds before you play.

Smart Tips to Understand Gambling Odds Better

Want to get better at reading odds? Follow these simple tips:

Stick with decimal odds—they’re the easiest to use.
Use betting calculators—many sportsbooks offer free tools.
Compare odds—Use OddsChecker SA to find the best odds.
Track your bets—Record your wins and losses to see what works.
Avoid emotional bets—always bet with logic, not loyalty.

CHECK OUT: Understanding the Odds: A Beginner’s Guide to Casino Games in Gauteng

When you understand gambling odds, you take control of your betting strategy. You stop guessing and start making informed decisions. Whether you’re placing a bet on Kaizer Chiefs, picking Lotto numbers, or spinning the slots, odds matter.

Bet smart. Bet responsibly. If gambling affects your life negatively, reach out to the National Responsible Gambling Programme (NRGP) for free, confidential help.