The U.S. Supreme Court overturned a sports betting ban in 2018. Since then, dozens of states have legalized some form of gambling.
In August, Iowa reported a 12% increase in betting handle from a year prior. The online sports betting market in New York rose to $872.2 million that same month.
Arizona reported $5 billion in sports betting for its first year in the legal market.
Top gambling companies continue vying for new customers. They must offer the best odds to keep up in a competitive marketplace.
That’s where technology comes in.
How Are Betting Odds Generated?
In short, betting companies use data science to generate odds for their sportsbooks. Do betting sites use algorithms? They use live betting algorithms with machine learning to deliver odds.
The National Football League (NFL) remains America’s most popular betting sport. Each week, the lines get released on Sunday night into Monday morning.
While some sportsbooks got their lines from Vegas, now they don’t have to wait.
Bettors are placing their wagers on impact algorithms at online sportsbooks. If one line takes in a lot of the action, the line gets altered in the other direction.
You’ll get the best value for some games by betting as early as possible. Other times, you might receive favorable odds later in the week.
The public contributes toward betting odds along with technology.
How Are Sports Odds Calculated?
Sports odds get calculated by real-time data and artificial intelligence (AI). Third-party companies provide these platforms for sportsbooks. Some gambling companies might use in-house software.
For example, say you want to bet on the Monday Night Football game in Week 2. (These odds come from MyBookie.ag.)
Tennessee Titans (+360)
Buffalo Bills (-490)
With an NFL betting calculator, you can plug in the odds with the desired bet.
These Moneyline odds show the Bills as a strong favorite at home. You’d need to wager $490 on the Bills to win $100.
A $100 bet on the Titans could win you $360.
These odds come from each team’s previous performance, as well.
The Bills won 31-10 on the road at the Los Angeles Rams in Week 1. The Titans lost at home 20-21 to the New York Giants.
There’s a 10-point spread one week before the Titans take on the Bills. Odds for both teams stand at -110.
The Over/Under for the game is 49.5 at -110.
Again, these lines represent previous performances from both teams. Lines get adjusted throughout the week depending on the betting handle.
Sportsbooks may generate opening lines from top companies and betting consultants.
Technology from data science, machine learning, and AI takes care of the rest.
Fixed Odds vs. Points Betting
When it comes to points betting, lines change throughout the week. The same goes for other sports like baseball, basketball, tennis, etc.
Fixed odds represent wagers that stay fixed once you place your bet. The best example comes from horse racing.
Rather than American odds (in the previous example), you may refer to fixed odds as fractions. That makes it easier to understand.
In a horse racing card, you might see Moneliney odds as 1/1, 2/1, 4/1, or 9/1.
A 1/1 wager represents an even 50/50 probability. You may win 100% of your bet.
For 2/1 odds, you might win 200% of your wager. (With a $100 bet, if your bet hits, you’ll win $200 for a total payout of $300.)
A $100 bet at 9/1 pays out $1,000. (Your $100 wager + $900 win.)
Oddsmakers use algorithms and win totals to set horse betting lines. Some sportsbooks might also alter these lines based on the money market.
Check out the odds and lines at different sportsbooks to get the most value for your wagers. Find reliable offshore betting sites that work best for you.
Different Types of Odds
Sportsbooks offer different types of odds via their platforms. You may be able to switch from American, fractional, or decimal odds.
Denver Broncos -7.0 (2.05)
Seattle Seahawks +7.0 (1.80)
These are decimal odds from Bovada.
The Denver Broncos represent the favored team on the road in this matchup. The Seattle Seahawks are the underdog at home.
If you bet $100 on the Broncos to cover the spread, you’d win $105. That same wager on the Seahawks might win you $80.
As you can see, oddsmakers set the difference at a touchdown. That’s a great line for the spread.
One of the biggest innovations for generating odds comes from in-play betting. Gamblers may place wagers during the game.
Algorithms adjust to the betting market in real-time. Watch the odds change after every single play.
This maximizes the betting handle. Gamblers may bet at any time from before kickoff until the final whistle.
The technology behind betting odds is a large industry. Endless amounts of data, within fractions of a second, offers the best possible odds.
Try your luck at any one of the many different available sportsbooks today.