As a matched bettor or as a casual betting fan, it is always important for us to have the correct odds and to know what these odds mean. That way when we create a bet, we know how much we could expect in return with this also indicating how likely the bookmaker thinks the event will happen. If an outcome has higher odds, this means the bookmaker thinks it is less likely to happen. However, you may have heard of implied odds, which could throw a spanner into the works if you don’t know what they are. Here at OddsMonkey, we will explain in detail what implied odds are, how they are useful and how they could come into play with matched betting.
What are Implied Odds?
The implied odds you are getting for your bets are calculated using the value of the potential profit you may make against the qualifying loss for the offer. For example, if you are betting on a horse with a qualifying loss of £2.11 for a potential profit of £167.89 should the horse place in the top 4, we are essentially risking £2.11 for the theorised return. We can then use a formula from these numbers to work out the implied odds by dividing the potential profit by the qualifying loss.
£167.89 / £2.11 = 79.57 and then +1 for decimal odds which would make 80.57. There, we have the implied odds for this horse race!
For more tips and tricks on horse betting, why not check out our guides surrounding horse racing, such as our horse racing betting guide or horse racing matched betting guide too.
How are Implied Odds Useful?
Implied odds can be useful for matched bettors, especially when placing bets on extra-place races. These are horse races that offer smaller returns if the horse finishes in a specific place, such as top 2, top 3 or top 4. Implied odds can be used when trying to identify if the selection offers a positive expected value. A common approach to identifying if a selection has a positive expected value requires us to use a formula involving the number of runners and the number of extra places on offer.
The formula is : Number of runners x 1.5 / number of places offered.
Let’s use the example we looked at before to put this formula into practice, assuming there are 20 runners and just 4th place is offered as the extra place:
20 x 1.5 / 1= 30
30 / 1 = 30
Odds of 30 or more would be considered as a positive expected value extra place bet. The Implied odds we worked out before of 80.57 are way above the value of 30, making it a recommended each-way bet that has good perceived value.
How Do Implied Odds Link To Matched Betting?
Using these implied odds, we can work out the value of the potential profit compared to the qualifying loss, and this can be very important to matched bettors as we can work out how good of a value the odds are for a bet. This could help bettors decide whether it is worth the risk of the qualifying loss or if the potential profit is of a good enough value.
Implied odds aren’t just for horse racing. They can be applied to other sports like golf and football, where understanding the value of the return and the stake is crucial. This versatility makes implied odds an invaluable tool in your matched betting arsenal, applicable across different sports and betting scenarios.
For more tips and tricks when it comes to sports matched betting, you could check out our matched betting blog or our specific football matched betting guide.
