What does -120 mean in sports betting?
The + or - in relation to sports betting showcases the odds or likelihood of an event outcome. The -120 is one way to read odds called 'American Odds'. In American odds, if the sign is positive or a + sign, it means you're betting an underdog or longer shot to occur. Therefore, you get paid more for your bet. If the sign is negative or a - sign, you're betting a favorite and get paid less in return for your bet as it has a higher probability of occurring. In American Odds, each item is displayed in reference to $100.
For a +120 bet, each $100 you bet, you'll receive $120 in winnings.
For a -120 bet, each $120 you bet will return $100.
With each bet, the odds showcase the implied probability of the outcome occurring and your payout is impacted accordingly.
Understanding American Odds and -120 meaning in Sports Betting
This example shows that the Minnesota Vikings are -120 odds to win. Therefore, they are a favorite in the match at a 54.5% probability to win.
A real life example of seeing -120 on the screen.
-120
+120
The Formula for Converting Positive American Odds (+120) to Probability
When converting American Odds to Probability, there's two differenct formulas depending on if the American Odds are a favorite or an underdog. Let's dive into the formula for Positive Odds, or the underdog.
100 / (100 + Odds)
Therefore, you can do:
100 / (100 + 120) = 45.5%.
The Formula for Converting Negative American Odds (-120) to Probability
When converting American Odds to Probability, there's two different formulas depending on if the American Odds are a favorite or an underdog. Let's dive into the formula for Negative Odds, or a favorite.
ABS(Odds) / (100 + ABS(Odds))
Therefore, you can do:
ABS(120) / (100 + 120) = 54.5%.
Understanding American Odds and Conversion to Probabilities or Implied Probability
One of the best ways to understand American Odds further is to better understand probabilities or the likelihood of the event outcome.
American Odds of -120 are equal to 54.5% probability.
The formula for converting from American Odds to Probability is quick and easy.
