How do casinos calculate the odds of winning?

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How do casinos calculate the odds of winning?

Whether you are in a physical casino or an online casino like SlotXO, the stats behind the game are a powerful guide to winning. Bookmakers and casinos generally offer three types of odds: Decimal, Fractional, and American (Moneyline). Below we take a look at how these odds determine player payouts.

Three types of payment odds

# 1 Decimal odds

Decimal odds are also referred to as numeric, continental, or European odds (popular in Europe, Canada, Australia, and New Zealand). These odds are simple, where the number represents the total amount a player wins for each unit he wagers (and not just the profit). The main difference with fractional or US odds is that decimal odds are factored into the stake, making it easier to calculate the total payout.

For example, let’s say the odds are:

  • Set X: 4.00
  • Game Y: 1.50

The numbers against X (4.00) and Y (1.50) represent the amount a player could win against each unit wagered. If a player bets £ 100 on game X, he can win £ 400 (£ 100 x 4.00); the profit is £ 300. A bettor can also win a total of £ 150 (£ 100 x 1.5) if they successfully bet on game Y.

The higher the total payout for the decimal odds, the riskier the bet. So, to protect the casino’s profits, higher odds would offer a payout less frequently.

# 2 Fractional odds

Traditional or fractional odds are commonly referred to as British or British odds, popular in Britain and Ireland. Odds appear as “X / 1”, “X-1” or “X-to-one” indicating that a player would win £ X against every £ 1 wagered. They would then receive their original amount (the stake) in return.

For example, fractional dimensions might appear as follows:

  • Game A: 11/10
  • Game B: 9/4

Game A odds show a higher chance of winning; a player would win £ 10 against £ 11 wagered. Players could win £ 100 if they bet £ 110 and win on game A, making a profit of £ 100 and getting their initial stake of £ 110 for a total of £ 210 in the pocket. Game B awards £ 9 for every £ 4 wagered, a much larger payout and therefore less likely to occur.

# 3 American odds (moneyline)

US, US or Moneyline odds work slightly differently, but also give players back their original stake if they win. Bookmakers write the odds of favorites with a minus sign (-), indicating the amount a player must bet to win £ 100. The odds for underdogs show a positive sign (+), also indicating the total amount a person could win for each £ 100 bet.

For example, Moneyline odds on two games could be:

  • Game S: +600
  • Game T: -750

The S game has a positive odds of 600 which means it is an underdog bet and has a lower probability of winning. If a player still wanted to bet £ 100 on the S game, he could win £ 600 on a win and get his original bet of £ 100 (a total payout of £ 700) back. For the T game, they would have to wager £ 750 to win £ 100 (a win would bring in £ 100 plus £ 750 for a total of £ 850 to be won).

The odds of winning

The odds play a huge role in any form of betting, and everyone is looking for loopholes. If you are lucky enough to make a bet that “beats the odds” of the bookies or casinos, you might find yourself partying. It’s rare — the house always wins — but understanding the odds is a good place to start.


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