# How Betting Odds Work

When you approach the casino tables, be it Roulette, Blackjack or Poker, there are signs around the table showing you the odds of the potential winnings for each potential hand or spin of the wheel. So what exactly do these betting odds mean and what makes one odd larger than the other? In this introductory casino guide to how betting odds work, we will explain how they are figured out and what the returns are for each bet.

Gambling odds are seen everywhere in casinos and bookmakers and they signify the potential chance that a certain outcome has of winning. The most common way in which odds are displayed are as a fraction, e.g. 2/1. In this instance, you can identify the chances of a winning hand by dividing the first number by the second, and turning that into a percentage. (2/1 = 0.5 or 50%). So from that calculation, it is clear to see that the larger the odds, then the much larger the return is.

Below are a number of different odds and the explanation of what each one means in the relevance of probability.

- 9/1 for every $1 you bet, you will win $9.
- 4/1 for every $1 you bet, you will win $4.
- 1/1 for every $1 you bet, you will win $1.
- 1/4 for every $4 you bet, you will win $1.

Casinos will offer larger betting odds to outcome that have a much lower chance of winning, for instance winning a game of poker with a two pair is 20/1, meaning that there is a 1 in 20 chance of finishing a hand with two different pairs in your hand, contrast that to the odds of having a royal flush, $650,000, and it is clear to see that casinos are taking a chance on the player not to have a royal flush, due to the immense improbability that it won’t come up. Gambling odds are displayed throughout casinos in order for the players to make judgements on where and when to bet on certain outcomes. This works in the favour of the casino as players are more likely to feel lucky and take a chance of a higher odd in order to a take a larger return, rather than to make smaller bets on much more likely outcomes, much like the way roulette works. In Roulette, players have a 2/1 chance of calling the correct number, however more people make bets on single numbers, with the hope of winning a large sum of money once in a while.

We hope that this guide on how betting odds work has given you the chance to be able to determine the differences between different outcomes and the chances of winning hands appearing when you next enter the casino tables, and make correct and calculated decisions when the time is right, and come away with a small profit.

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