Betting Odds Decoded: Fractional, Decimal & Moneyline Odds

The Two Types of Betting Odds Formats ⤴️

There are all kinds of explanations on the Internet about various odds types, and the majority of them distinguish between fractional, decimal, and moneyline odds.

Unfortunately, this is misleading and mathematically speaking, incorrect. There are only two types of odds, which are unrelated to their displays as fractions, decimals or, as in America, whole numbers.

Just remember those long ago school days (for some of us!)… A fraction, such as 6/5, converts into a decimal 1.2, or vice versa. Both numbers are the same, only written using different formats.

Here are the two main types of betting odds, including their formulas…

(1) Single-tier – (Net) Return Odds ⤴️

Fractional and Hong Kong odds are actually exchangeable. The only difference is that the UK odds are presented as a fractional notation (e.g. 6/5) whilst the Hong Kong odds are decimal (e.g. 1.2). Both exhibit the net return.

The European odds also represent the potential winnings (net returns), but in addition they factor in the stake (e.g. 6/5 or 1.2 plus 1 = 2.2).

(2) Two-tiered – Moneyline Odds: highlighting the amount of money risked, or the amount of money won ⤴️

Odds commonly referred to as ‘moneyline’ are mainly US bookmakers odds and also known as American odds. Moneyline means the money wagered either to win 100 units (e.g. -400), or money which will be won from a 100 units wager (e.g. +120).

However, both Indonesian and Malaysian odds, although displayed as decimals are, strictly speaking, ‘moneyline’ odds but their basis is 1 unit and not 100. Whilst the Indonesian odds closely resemble the American moneyline odds, Malaysian odds are a kind of “inverted” Indonesian style, combined with Hong Kong odds.

Although this may all sound pretty confusing, and the betting odds certainly look very different at first glance (see table below), just have a closer look at the above formulas – all odds are calculated using their net returns (formula for net return: 1/probability – 1) and change their formula at 50% probability (this is what is actually understood under by term ‘money-line’).

European, British, American, Malaysian, Indonesian, and Hong Kong Odds
BETTING ODDS CONVERSION TABLE ⤴️

Fractional Odds (also known as Traditional or British/UK) ⤴️

Fractional odds are favoured by bookmakers in the United Kingdom and Ireland.

Fractional odds quote the net return that will be paid out to the bettor, should he win, relative to his stake. Odds of 6/5 (“six-to-five”) imply that the bettor will cash £120 from a £100 stake. Should the punter win, he always receives his original stake back, plus the winnings.

So, if the betting odds are 6/5 and the stake is £100, then the total return is £220 (£120 winnings plus the original £100 stake).

Odds of 1/1 are known as ‘evens’ or ‘even money’. Not all fractional odds traditionally show the lowest common denominator. Perhaps most unusually, odds of 10/3 are read as “one-hundred-to-thirty”.

Hong Kong Odds (also known as HK Odds) ⤴️

Hong Kong Odds are mainly used by people living in Hong Kong.

Until 1997, Hong Kong was under British rule and therefore it should not be a surprise that HK odds closely resemble traditional British odds. The only difference is that HK odds are written in a decimal notation whilst the UK odds use fractions.

Hong Kong odds, as well as their UK counterparts, both quote the net return that will be paid out to the bettor should he win, relative to his stake.

Odds of 1.2 in Hong Kong are the same as 6/5 (“six-to-five”) in the UK and both imply that the bettor will earn a net profit of £120 from a £100 stake. Should the punter win, he always receives his original stake back, plus the profit.

It follows that if the HK odds are 1.2 and the stake is £100 then the total return is £220 (£120 winnings plus the original £100 stake).

Decimal Odds (also known as European or Continental) ⤴️

Decimal odds are standard on betting exchanges and they are favoured in continental Europe, Australia, and Canada.

Decimal odds are equivalent to the decimal value of the fractional odds, plus one. Because decimal odds are simply 1 divided by probability (= 1/probability) they are easier to use in calculations and we therefore favour them for our articles and explanations.

Thus, ‘even odds’ 1/1 are quoted in decimal notation as 2.0; the 6/5 fractional odds (1.2 HK odds) discussed above are quoted as 2.2. Decimal odds quote the net return paid out to the bettor PLUS the original stake.

So if the odds are 2.2 and the stake is €100 then the total return is €220 (€120 winnings including the original €100 stake).

Betting Odds commonly referred to as ‘moneyline’ are the odds which are mainly used by US bookmakers. These odds mean the money wagered either to win 100 units, or the money which will be won from a 100 unit wager.

Please note that both Indonesian and Malaysian odds are also ‘moneyline’ odds although often wrongly referred to just as ‘decimal odds’, probably due to their decimal notation, whilst US moneyline odds are shown in whole numbers.

However, both Indonesian as well as Malaysian odds have the same underlying formulas as the US moneyline odds, only that their basis is 1 unit and not 100.

Moneyline (also known as American Odds, or US Moneyline) ⤴️

Moneyline odds are favoured by American bookmakers.

The figure quoted can be positive or negative, and depends on the probability to win the bet.

Positive Figures: UNDER 50% probability of winning the bet

A positive moneyline quotes the money won from a 100 unit stake. In other words, a positive moneyline shows the potential win from a 100 unit wager. Talking of formulas, if the probability of winning the bet is less than 50%, then the net return is multiplied by 100.

The 6/5 fractional odds (1.2 HK odds, 2.2 decimal odds) discussed above translate into +120 moneyline. This means the net return paid out to the bettor for a 100 unit stake.

So if the odds are +120 and the stake is $100 then the total return is $220 ($120 winnings plus the original $100 stake).

Negative Figures: OVER 50% probability of winning the bet

A negative moneyline shows the stake amount needed to win 100 units. In other words, a negative moneyline shows the potential loss. Again, from the formula perspective, if the probability of winning the bet is higher than 50%, then minus 100 is divided by the net return.

Fractional odds of 1/4 (0.25 HK odds, 1.25 decimal odds) translate into -400 moneyline. These odds stand for an implied probability of 80% to win the bet, and a net return of 25%. The bettor needs to wager (stake) 400 units in order to win 100.

So if the odds are -400 and the intended profit is $100 then the stake needed is $400 for a total return of $500 ($100 winnings plus the original $400 stake).

Probability exactly 50%

If the probability to win is exactly 50%, then moneyline odds are either quoted as +100 or -100. Some bookmakers display the negative symbol while others do not. There is no rule.

Indonesian Odds (also known as IN Odds) ⤴️

Indonesian Odds are very similar to American odds.

They follow the same formulas and the only difference is that they show the potential win from a 1 unit stake (not 100), or the stake amount needed to win 1 unit.

To convert American moneyline odds into Indonesian style odds, the US Moneyline odds are just divided by 100.

Positive Figures: UNDER 50% probability of winning the bet

The 6/5 fractional odds (1.2 HK odds, 2.2 decimal odds, +120 US moneyline) now translate into +1.20 Indonesian odds. This is the net return paid out to the bettor for a 100 unit stake.

If the odds are +1.20 and you stake $1.00, then the total return is $2.20 ($1.20 winnings plus the original $1.00 stake).

Negative Figures: OVER 50% probability of winning the bet

Fractional odds of 1/4 (0.25 HK odds, 1.25 decimal odds, -400 US moneyline) translate into -4.00 Indonesian odds. These odds still stand for an implied probability of 80% to win the bet with a 25% net return, and the bettor needs to wager (stake) 4.00 units in order to win 1.00.

So if the odds are -4.00 and the intended profit is $1.00 then the stake needed is $4.00 for a total return of $5.00 ($1.00 winnings plus the original $4.00 stake).

Probability exactly 50%

If the probability to win is exactly 50%, using Indonesian style odds, even money would be quoted as 1.00.

Malay Odds (also known as Malaysian Odds, or MA Odds) ⤴️

Malay odds are also ‘moneyline’ odds, and change their formula at 50% probability and/or 100% net return; the same as US moneyline odds and Indonesian odds.

However, Malay odds are “inverted” ‘moneyline’ odds compared to the US moneyline and Indonesian odds approach.

Whilst US and Indonesian bookmakers display positive figures for UNDER 50% probability bets and negative figures for OVER 50% probability bets, Malay odds are exactly the opposite.

Malay odds show the potential win (positive figure) from a 1 unit stake for probabilities of over 50% to win the bet, and the potential losses faced (stakes needed) to win 1 unit for probabilities under 50% to win the bet.

Positive Figures: OVER 50% probability of winning the bet

A positive Malay odds moneyline quotes the money won from a 1 unit stake. In other words, a positive moneyline shows the potential win from a 1 unit wager. For the sake of formulas, if the probability of winning the bet is over than 50%, then the Malay odds display the net return in decimal notation.

Here is an example of the inversion I have mentioned: –
Fractional odds of 1/4 (0.25 HK odds, and 1.25 decimal odds) translate into -400 US moneyline odds and -4.00 Indonesian odds, but the Malay odds for this bet would be 0.25. All of these odds stand for an implied probability of 80% to win the bet, or 25% net return. If the bettor wagers (stakes) 1 unit he will win 0.25 units.

If you look closely you will notice that for over 50% probabilities the Malay odds are the same as the UK and HK odds – all of them mean 0.25.

So if the Malay odds are 0.25 and you wager $400, then the total return is $500 ($100 winnings plus the original $400 stake).

Negative Figures: UNDER 50% probability of winning the bet

A negative Malay odds moneyline shows the stake amount needed to win 1 unit. In other words, a negative figure shows the potential loss. Again, from the formula perspective, if the probability of winning the bet is less than 50%, then minus 1 is divided by the net return.

Again, here’s an example of the inversion: –
6/5 fractional odds (1.2 HK odds, 2.2 decimal odds) discussed above translate into +120 US moneyline, or 1.2 Indonesian odds. Expressed in Malay odds format it’s -0.83. This means the money the bettor needs to wager (stake) in order to win 1.00.

In this example, if the odds are -0.83 then it means you must wager $0.83 to win $1.00.

Using the Indonesian odds example (IN odds +1.20), from a stake of $1.00 the total return is $2.20 ($1.20 winnings plus the original $1.00 stake).

Transferring this information into Malay odds… In order to calculate the necessary stake money, you need to multiply your intended winnings ($1.20) with the positive integer of the Malay odds (0.83): intended winnings $1.20 times 0.83 (positive integer of -0.83) = $1.00 (= stake/wager to win $1.20).

To be honest, I find the Malay odds the most confusing and disturbing of all the odds types available in the market. But, there must be enough people who understand and like them, especially in Malaysia! 🙂