Sports Betting Basics from a Newb
Currently, there are 13 jurisdictions in the United States where you can place a legal sports wager. There are 7 more jurisdictions (6 states and D.C.) in the batter’s box, getting ready to open to the public sometime early 2020.
As I have recently moved back to Las Vegas, I have started conducting ‘field research’ on this topic and have been very surprised with how cool the tech is in this space. Not to brag but I am also up more than double my initial investment in the few weeks since downloading the William Hill App. Unfortunately, that only means that I am up from $30 to $75 but even a little action on the games adds a lot more enjoyment to the otherwise less entertaining games.
But before you run off to your local book maker or download the app, here are 5 things you need to know to be a Sports Betting Sharp and not a Square.
1. Odds
The first time I walked into a sports book, I was very overwhelmed by the large red and green lights looking down at me. There were so many numbers, minus signs, fractions, etc. I thought I was back taking the SAT’s with the amount of math going on. First thing that you need to understand is how much you are going to get paid if you win your bet, these are the odds. Let me try and simplify those number that you will see at the books.
These odds can be expressed in a variety of ways. In the United States, the most common type will be a 3- or 4-digit number next to the team you are betting on. If there is a minus sign next to that number, that simply means that is the amount of money you will need to wager in order to walk away with $100. If there is no negative next to the number, it is saying that if you bet $100 you would walk away winning the positive number listed. An example will clear it up.
From this past weekend, Louisiana State University played the University of Alabama. Alabama was the favorite in that game and had the odds of -208 listed next to their name. LSU was the underdog and had 175 listed next to their name. For this game, if you picked Alabama, you would need to wager $208 in order to win $100. If you made the correct bet and were cheering on the LSU Tigers, you would have won $175 on a $100 bet.
You do not need to bet $100 every time you want some action. This is just a way for the books to communicate what the payout will be. On most sports betting apps, you can put in the amount you want to wager and it would give you what your payout will be, if your bet wins.
I do not love the plus and minus of the American system of betting but that is what the books use and is relatively easy to understand after a few games under your belt. There are other ways that the odds can be communicated. The decimal system is most commonly used in Europe and I feel like has a much easier way of communicating the future outcome. For that same LSU- Alabama game, a European book would list the Alabama money line as 1.481 and LSU as 2.75. Meaning that if you bet a dollar on the Tigers, you could expect to walk away with $2.75 if they won.
Lastly, you will see fractions listed as a way to communicate payouts. This is normally done for large payouts that you would have in futures bets (we will discuss these below). These are a great way to communicate large number odds and not to confuse the bettor. All of these ways to show wagers have their positives and negatives but it is important to understand them all if you go to different platforms to make bets. Find one that make the most sense to you and run with it.
2. Vigorish
This word gives me flashbacks to the Godfather trilogy or any Scorsese Film. Also known as juice, the cut, the take, the margin, the house edge or simply the “Vig.” Simply put, it is the money that the book takes for accepting the gambler’s wager. Luckily, this vig is only paid by the losing side of the bet.
One of the most common odds posted in American sports books is -110. As we explained above, that means that the bettor would need to wager $110 in order to win an additional $100.
As shown in the chart above, the loser’s bet is used to pay the vig and the winning bettor’s prize. In this case, I beat Taylor and took his money.
3. Point Spread
In sports, very often the teams playing one another are not equal in their talent level. Instead of just offering money line bets of who will be the winning team, book makers have created point spreads to make the games more interesting.
These point spreads are noted on the boards by either a positive or negative number next to each team name. For example, from this past NFL season, the Super Bowl Contending New England Patriots were playing the tanking, terrible Miami Dolphin. No one in their right mind would bet on the Dolphins to win the game outright but when we introduce a point spread, these book makers are able to get a lot more action on this game. The Patriots opened as a 20-point favorite, one of the largest favorites in professional football history. While the Patriots easily covered that line (they won the game 43-0), the books saw a lot more action on the Dolphin then they would have otherwise seen.
To understand the spread, simply think that the team you bet on is either starting the game out with a lead or a deficit. In the example of the Patriots/ Dolphins game, bettors would have imagined the game started out Patriots- 0 Dolphins- 20. At the end of the game the score, with the spread, would have been Patriots- 43 Dolphins- 20. Any bettor that took the Patriots -20 would be able to cash their ticket and any Dolphin bettors would have lost the bet.
This is a great way to bet on a game that you are wanting to watch until the end but are not totally confident that the team will win outright.
4. Under/ Over
Sometimes the best action you can take on the game will not involve picking a particular team but using your football acumen to make a bet on the final score of the game. These under/ over bets allow the gambler to say if the score will be above or below a certain number. As mentioned many times above, this is also a great way to make sure you have a reason to watch the game until the final whistle blows.
Weather, playing styles, injuries, coaching philosophy, etc. can all play a factor in this number and what it is set at. There have even been reports of some meteorologists that have bet games with no football knowledge but won the majority of their bets only because of weather predictions. Most of the time, these bets, under and over will pay at the standard -110, allowing the book to make their money.
5.Futures
As I said before, I am FAR from being a wealth of sports betting knowledge. I play around with it to understand the industry and tech a little more. Having only bet on games for a couple of weeks, I have not had the chance to cash in or lose any futures bets I have made. These future bets are wagers places that a certain team, player, etc. will achieve a future outcome (win the Super Bowl, Heisman, etc.).
After the University of Kentucky’s big win over Michigan State, I place a $20 wager on the Cats to win the NCAA Championship next April. This bet will not be resolved for a couple months but it has already added to the excitement of college basketball for me. The odds listed for the Wildcats to win the championship were 7/1. This fraction, as explained above means a $20 bet will give me a $160 payout (Original $20 and winning 7 x $20). If the Cats win, I’ll make sure to enjoy a nice steak for you guys.
Futures bets are fun as they allow you to bet on the outcome of the entire season and not just one game. Fun way to stay engaged and have your money last a whole season. While the favorites win a lot of the time, there are examples of teams, including the Washington Nationals that overcome crazy low odds (55-1 odds in June) to win their championship.
Conclusion
I feel like it took me a hot second to understand all the lingo and phrases used in books and the betting shows on FOX and ESPN. Hopefully with these 5 tips, you all can go make some money and enjoy the games. Feel free to reach out to us at @ScholarsOTG if you have any crazy sports betting stories or questions. And may the odds forever be in your favor.
