How The Plus-Minus Odds Format Can Encourage Problem Gambling

Plus-minus odds, also known as American odds, are a way sportsbooks give gamblers a price for a bet. They don’t reflect actual probabilities.

These odds can be displayed as either a positive or a negative number. 

Plus Odds (+): This indicates how much profit you could win on a $100 bet if the bet is successful. For example, if the odds are +150, you would win $150 on a $100 bet, receiving a total of $250 (your original $100 plus the $150 profit).

Minus Odds (-): This shows how much money you need to bet to win $100. For example, if the odds are -150, you need to bet $150 to win an additional $100, totaling $250 (your original $150 bet plus $100 profit).

In summary:

• Plus odds (+) show the profit on a $100 stake.

• Minus odds (-) show the amount needed to stake to win $100.

The negative number represents what the sportsbook has priced as the more likely event (the favorite), and the positive number represents what the sportsbook has priced as the less likely event (the underdog).

Now that you understand how these odds work, let’s examine how they are problematic.

How American Odds Encourage Larger Bets

For most people, $100 is a huge amount to bet on sports. The American odds format gives prospective bettors a price based on a $100 wager.

Of course, the sportsbook doesn’t force you to wager $100 or seek to win $100. You can bet less even though the odds are based on the $100 figure. However, it’s a problematic way of providing a price.

The sportsbook might give you a large plus-number (let’s say +1600 for Caitlin Clark to score 50 or more points in a game), which entices many gamblers to try to win that amount. The +1600 odds can cause many bettors to seek a payout of $1,600, requiring a $100 bet.

Of course, many people have enough self-control not to fall into this trap if a $100 bet is an amount that they feel uncomfortable losing. However, for millions of problem sports gamblers, the American odds prove to be especially seductive.

Gambling beyond your means can exacerbate the urge to chase losses.

Are Other Odds Formats Any Better?

In the United Kingdom, another country with an online sports gambling crisis, sportsbooks provide prices in the form of decimal odds. 

Decimal odds, also known as European odds, are another way to calculate potential winnings in sports betting.

The decimal number represents the total amount you would receive for every $1 wagered if the bet is successful. This total includes both your original stake and your profit.

Example: If the decimal odds are 3.0 and you place a $10 bet, your total return if you win would be $30. This is calculated as $10 (your stake) × 3.0 (the odds) = $30. 

Thus, your profit would be $20.

This format is also widespread in Canada and Australia.

Millions of people fall victim to sports betting addiction when presented with the decimal odds format. Thus, it’s not the odds format in itself that causes gambling addiction.

Bottom Line

With the U.S. online sports gambling still in its infancy, it’s impossible to determine if Americans lose more at sports betting due, in part, to the more problematic way the sportsbook prices are presented.

The American odds are based on a $100 bet, while the European odds are based on a $1 bet.

Of course, the odds format isn’t the fundamental problem with sports betting. A core issue is that sportsbooks give you prices disguised as “odds” that warp your perception of reality.

For example, a sportsbook may give you a price with an implied probability of 25% when in reality the theoretical probability of the outcome is exponentially less likely.

This can chip away at you, resulting in feelings of being unlucky, an early sign of a gambling problem.

Image by Andrew Khoroshavin from Pixabay.