When gambling with a bookmaker, in a betting shop or with an internet bookmaker you will offered odds. When you place a bet you are staking a certain amount of money on predicting the outcome of and event. If you predict the outcome of the event correctly then you will receive an amount of money back. The amount you get back is dependent on what odds you were given when you placed your bet.

Fractional Odds

Fractional odds are used by bookmakers and betting shops in the UK and also by some internet bookmakers. Fractional odds will be shown using fraction such as 5/1 or 9/2. To work out what money you receive back from a winning bet is shown a follows.

To work out how much you receive back you times your stake times the top number of the fraction then divided by the bottom number of the fraction plus your original stake.

Example 1:
If you were to bet £10 on a horse to win and the bookmaker gave you odds of 5/1 you would get back 5 times your bet plus your original stake. i.e. (10x5)/1=50+10=£60.

Example 2
If you bet £20 and the bookmaker gave odds of 9/2. Your winnings would be 20 times your original stake which equals 180 dividing this by the bottom number 2 gives you 90 then add your original stake of £20. Therefore you receive back £110.

Decimal Odds

Decimal odds are used in the US and Europe, at the tote, on betting exchanges and by some internet bookmakers.

Decimal odds will be shown using decimals such as 4.25 or 6.50. To work out what money you receive back from a winning bet is much simpler than with fractional odds and is shown as follow.

Example 1:
If you were to bet £10 and the bookmaker gave you odds of 4.25 your winnings would be the amount bet times the decimal odds. i.e. 10x4.25 so you get back £42.50

Example 2:
If you £35 at odds of 3.72 you get back 35x3.72= £130.20

Fixed Odds Betting

Some types of betting are fixed odds and some aren't. If you are given fixed odds then when the event has occurred and you have won you receive money back depending on what odds you were given when you placed your bet. This method is usually used by bookmakers, internet bookmakers and usually in betting shops. When using the tote (pari-mutuel betting) you will not get paid out at the odds when you place your bet but at whatever the odds are when the race starts. Sometimes in betting shops you will be asked if you want fixed odds or if you want the starting odds and it is up to you which you choose.