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# What are odds?

In sports betting, **odds** represent the probability of an event happening and determine how much you can win from a bet. They are used by sportsbooks to set payouts based on the likelihood of a team winning or a specific outcome occurring.

There are **three main types of odds**:

#### **1. Decimal Odds**
Decimal odds show the total payout you will receive for every $1 wagered, including your stake.
* **Example:** Odds of **2.50** mean that for every $1 you bet, you would win **$2.50** (your $1 stake plus $1.50 profit).

#### **2. Fractional Odds**
Fractional odds are the most traditional and show the profit relative to your stake.
* **Example:** Odds of **5/1** (read as "five to one") mean that for every $1 you bet, you will win **$5** in profit if your bet is successful.

#### **3. Moneyline Odds**
Moneyline odds show how much you can win on a bet based on your stake, but they’re expressed differently for favorites and underdogs.
* **Positive Moneyline Odds (+)**: These show how much you can win on a **$100 bet**.
    * **Example:** Odds of **+200** mean that if you bet $100, you could win **$200** in profit.
* **Negative Moneyline Odds (-)**: These show how much you need to bet to win **$100**.
    * **Example:** Odds of **-150** mean you need to bet **$150** to win **$100** in profit.

### **Why Do Odds Matter?**
* **Odds tell you how likely something is to happen**: Lower odds (e.g., -150) mean the event is more likely to occur, while higher odds (e.g., +200) mean the event is less likely, but the potential payout is greater.
* **Odds determine your payout**: The odds you bet on will dictate how much you win relative to your wager.

You can learn more about odds here: [https://help.draftkings.com/hc/en-us/articles/360061942833-Understanding-Odds](https://help.draftkings.com/hc/en-us/articles/360061942833-Understanding-Odds)