Understanding Money Line Odds: A Beginner’s Guide to Betting Smart

13 min read
Aug 28, 2024, 7:08 AM
Author
Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief
Last Updated: Sep 19, 2024, 2:56 PM

Understanding Money Line Odds

Moneyline betting is one of the most straightforward ways to get involved in sports betting, especially for beginners. Unlike point spread bets, where you have to consider how many points a team will win by, moneyline bets focus solely on which team will win the game outright. This guide will help you understand the ins and outs of moneyline betting, including how to read moneyline odds, calculate payouts, and make smart bets that align with your risk tolerance.

What is Moneyline Betting?

Moneyline betting is a type of sports betting where you bet on the outright winner of a game. In a moneyline bet, you choose which team you think will win the game, and if your selected team wins, you win the bet. The simplicity of moneyline betting makes it a popular choice among both novice and experienced sports bettors.

In contrast to point spread betting, where the final margin of victory is crucial, moneyline betting is straightforward—only the outcome of the game matters. For example, if you bet on the Kansas City Chiefs to win a game outright, you don't need to worry about how many points they win by, only that they win.

Moneyline betting offers simplicity—bet on a team to win outright without worrying about the point spread.

How to Read Moneyline Odds

Understanding how to read moneyline odds is essential for making informed bets. Moneyline odds are typically displayed in the American odds format, which can be either a positive or a negative number.

  • Positive Number (+): This indicates how much profit you will make on a $100 bet. For example, if the moneyline odds are +200, a $100 bet would yield a $200 profit, plus your original bet, making the total payout $300.
  • Negative Number (-): This indicates how much you need to bet to win $100. For example, if the moneyline odds are -150, you would need to bet $150 to win $100, for a total payout of $250.

These odds reflect the perceived probability of each team winning the game outright. A minus sign indicates the favored team, while a plus sign indicates the underdog team.

Favorites and Underdogs

In moneyline betting, teams are categorized as either favorites or underdogs. The moneyline favorites are the teams expected to win, and their odds are typically indicated by a negative number. On the other hand, the moneyline underdogs are the teams expected to lose, with odds usually shown as a positive number.

Favorites offer safer bets, but underdogs can yield higher payouts with more risk.

For example, if the Kansas City Chiefs are listed at -200, they are the favored team, meaning you would need to bet $200 to win $100. If their opponent is listed at +180, they are the underdog, and a $100 bet would win you $180.

Understanding the distinction between favorites and underdogs is crucial for placing bets that align with your risk tolerance. Betting on favorites generally offers a lower payout but a higher probability of winning, while betting on underdogs can yield higher payouts but with more risk involved.

Winning a Moneyline Bet

Winning a moneyline bet is simple: if your chosen team wins the game outright, your bet wins. There's no need to worry about point spreads, final margins, or how many points were scored. Whether it's an NFL moneyline bet or a wager on college football, as long as the team you bet on wins, you win.

For instance, if you bet on the Kansas City Chiefs to win a particular game and they emerge victorious, your bet wins. The payout you receive will depend on the moneyline odds at the time you placed your bet.

Moneyline Bets in Different Sports

Moneyline betting is popular across a wide range of sports, including NFL, NBA, college football, and college basketball. Each sport has its nuances, but the principle remains the same: you are betting on one team to win the game outright.

  • NFL Moneyline: NFL moneyline bets are common, especially for games with closely matched teams. The odds for NFL games can vary significantly based on team performance, injuries, and other factors.
  • College Football: In college football, moneyline betting is often used when betting on underdog teams, as the potential payout can be substantial.
  • College Basketball: Moneyline betting is also prevalent in college basketball, particularly during March Madness, when upsets are frequent, and the potential for high payouts on underdogs is attractive to bettors.

Moneyline Parlays

A moneyline parlay involves combining multiple moneyline bets into a single wager. To win a moneyline parlay, all the selected teams must win their games outright. The potential payout for a parlay is much higher than for individual moneyline bets, but the risk is also greater, as one loss means the entire parlay bet loses.

For example, if you bet on three NFL teams to win their games outright in a moneyline parlay, all three teams must win for your bet to pay out. The increased payout reflects the difficulty of accurately predicting multiple outcomes.

A single team loss in a moneyline parlay means the entire bet loses—know the risks!

How Sportsbooks Make Money on Moneyline Bets

Sportsbooks make money on moneyline bets by setting odds that ensure a profit, regardless of the game's outcome. This profit margin is often referred to as the "vig" or "juice." By adjusting the odds, sportsbooks can balance the amount of money bet on each side, ensuring they make money regardless of which team wins.

For instance, if more people bet on the favored team, the sportsbook might lower the odds for the favorite and raise the odds for the underdog to attract more balanced betting action. This way, the sportsbook minimizes its risk and guarantees a profit over time.

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Sportsbooks adjust moneyline odds to balance betting action and minimize their risk.

Why Do Moneyline Odds Change?

Moneyline odds can change for several reasons, including changes in team performance, injuries, and the amount of money being bet on either side. When large sums of money are placed on one team, sportsbooks may adjust the odds to encourage betting on the other team and balance their risk.

For example, if the Kansas City Chiefs are initially listed as -150 favorites but a star player gets injured, the odds might shift to -120 or even lower, reflecting the decreased likelihood of the team winning. Conversely, if a lot of money is bet on the underdog, the sportsbook might adjust the odds to make the favorite more appealing to bettors.

Calculating Payouts on Moneyline Odds

Calculating your payout on a moneyline bet is straightforward, depending on whether the odds are positive or negative.

For Positive Odds:

  • Formula: (Bet Amount * Odds/100) + Bet Amount = Total Payout
  • Example: A $100 bet on +150 odds results in a $250 total payout ($150 profit + $100 original bet).

For Negative Odds:

  • Formula: (Bet Amount / Odds) * 100 + Bet Amount = Total Payout
  • Example: A $100 bet on -150 odds results in a $166.67 total payout ($66.67 profit + $100 original bet).

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Understanding how to calculate moneyline odds and potential payouts is essential for managing your betting strategy and risk tolerance.

Common Moneyline Betting Terms

Moneyline TermsDescription
Moneyline OddsThe odds associated with a team to win a game outright.
Point SpreadA type of bet where the sportsbook sets a margin of victory that the favored team must exceed.
Bet SlipThe electronic or physical ticket representing your bet.
Betting LinesThe odds and point spreads set by sportsbooks for various betting options.
Wager AmountThe amount of money you bet.
Total PayoutThe total amount you would receive if your bet wins, including your original wager and your winnings.
Point Spread BettingA form of betting where the focus is on the final margin of victory rather than the outright winner.

Tips for Making Smart Moneyline Bets

  1. Research the Teams: Always research the teams, considering recent performance, injuries, and other relevant factors before placing a bet. This will give you a better understanding of the betting odds and help you make more informed decisions.
  2. Understand Risk Tolerance: Betting on favorites offers lower returns but a higher chance of winning, while betting on underdogs can result in higher payouts with more risk involved. Determine your risk tolerance before placing a bet.
  3. Shop for Better Odds: Different betting sites might offer slightly different odds, so it’s worth shopping around to find the best value for your bet. Professional bettors often use multiple sportsbooks to take advantage of the best odds.
  4. Avoid Emotional Betting: Bet based on data and analysis, not emotions or team loyalty. This approach is particularly important when dealing with popular teams like the Kansas City Chiefs, where public sentiment can skew the odds.
  5. Consider Bankroll Management: Set a budget for your betting and stick to it. Managing your bankroll effectively is crucial to long-term success in sports betting.
  6. Be Aware of Gambling Problem Signs: Sports betting should be a fun and engaging way to enjoy sports. However, if you find yourself chasing losses or betting more than you can afford, it may be time to seek help for a gambling problem.

FAQs on Moneyline Odds

Understanding Money Line Odds
What is a Moneyline Bet?
How do you read Moneyline Odds?
What’s the difference between Moneyline Favorites and Underdogs?
Can Moneyline Odds Change?
How do I calculate my Expected Payout on a Moneyline Bet?
Are Moneyline Bets Available in All Sports?
What is a Moneyline Parlay?
How do Sportsbooks Make Money on Moneyline Bets?
What Should I Consider Before Placing a Moneyline Wager?
Can I Cash Out a Moneyline Bet Early?
What Are the Risks of Moneyline Betting?

Final Thoughts

Moneyline betting is a straightforward bet that appeals to both novice and experienced bettors. By understanding moneyline odds, how to read them, and how to calculate payouts, you can make more informed betting decisions. 

Remember to research thoroughly, understand your risk tolerance, and manage your bankroll effectively. Whether you're betting on NFL moneyline games, college football, or any other sport, the key is to bet smart and responsibly.

Sol has over 20 years of experience in writing for diverse industries including sports, gambling, regulation, technology, and startups. As the Editor-in-Chief at RG.org, Sol brings a wealth of knowledge and expertise to the role, focusing on delivering transparent, evidence-based content grounded in thorough research. Sol's mission is to empower readers to enjoy gambling responsibly and make informed decisions, enhancing their overall experience through insightful and engaging content. Under Sol's leadership, RG.org prioritizes the highest standards of integrity and reliability, ensuring that all information provided is accurate and trustworthy. Sol's dedication to transparency and research-based writing helps create a responsible gambling environment where readers can truly benefit from the content. This commitment to excellence has positioned RG.org as a leading source of information in the gambling industry.

Experience:

  • Over 20 years in writing and editing across multiple industries
  • Former head of regional innovation at BMO Finanacial Group
  • Senior Writer, Online Casino Reports
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Meet our Authors

Paruyr Shahbazyan began his business career in 2000 as a private entrepreneur. Over thirteen years, he developed a deep understanding for business and leadership, laying a solid foundation for his professional journey.

In 2013, Paruyr stepped into the sports and betting industry as the founder and president of Bookmaker Rating. This online mass media platform, which he led until 2020, focused on providing in-depth analysis and insights in sports betting, earning a reputation for its quality content. 

Continuing his innovative approach in 2022, Paruyr co-founded Azuro, a decentralized betting protocol. This venture showcases his dedication to integrating advanced technology in the evolving landscape of sports betting. Through these diverse experiences, Paruyr has continuously influenced and shaped the betting industry, driving new trends and setting high standards.

 ExperienceYear
Engaged in private entrepreneurship2000-2013
Founder and President at Bookmaker Rating, an online platform focused on sports and betting2013-2020
Co-founder at Azuro, a decentralized betting protocol2022

"Innovation in sportsbetting comes from a deep understanding of both technology and the human element of sports." 

- Paruyr Shahbazyan, Founder, RG

 

Principles and Ethics

Paruyr Shahbazyan's core beliefs lie in the power of informed decision-making and integrity in the betting industry. He understands that the foundation of successful betting is not just about odds and predictions, but also about the trust and reliability of the information provided. Paruyr advocates for a betting environment where transparency and knowledge are paramount, ensuring that bettors are well-equipped with accurate data and insights.

Strategic Vision

Paruyr's vision is to revolutionize the sports betting industry through the integration of technology. He sees the future of betting as a blend of traditional sports knowledge with innovative tech solutions, like decentralized protocols, to enhance user experience and fairness. His aim is to create platforms that are not only user-friendly but also uphold the highest standards of ethical betting, contributing to a more responsible and enjoyable betting culture.

Future Perspectives

Looking towards the future, Paruyr envisions a betting landscape that is more inclusive, technologically advanced, and globally connected. He anticipates a significant shift towards more decentralized and transparent betting systems, driven by blockchain technology. Paruyr is committed to being at the forefront of this change, continuously exploring new possibilities and innovations that can redefine what it means to engage in sports betting in a digital world. His focus is on building systems that prioritize user empowerment, fairness, and the global growth of the sports betting community.

 

Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief

Sol has over 20 years of experience in writing for diverse industries including sports, gambling, regulation, technology, and startups. As the Editor-in-Chief at RG.org, Sol brings a wealth of knowledge and expertise to the role, focusing on delivering transparent, evidence-based content grounded in thorough research. Sol's mission is to empower readers to enjoy gambling responsibly and make informed decisions, enhancing their overall experience through insightful and engaging content. Under Sol's leadership, RG.org prioritizes the highest standards of integrity and reliability, ensuring that all information provided is accurate and trustworthy. Sol's dedication to transparency and research-based writing helps create a responsible gambling environment where readers can truly benefit from the content. This commitment to excellence has positioned RG.org as a leading source of information in the gambling industry.

Experience:

  • Over 20 years in writing and editing across multiple industries
  • Former head of regional innovation at BMO Finanacial Group
  • Senior Writer, Online Casino Reports
Cristina Varela Galan
Cristina Varela Galan
Problem Gambling Expert

Cristina used to work as a Psychology Assistant in the Bizkaia Pathological and Risky Gamblers Association. She was also part of a research team in Deusto University, specializing in pathological gambling area. While working there, she managed to develop her own project 

 “Exploring the association between emotional regulation, alexithymia, stressful life events and gambling in adolescent and young adult women”.

Nick Ashbourne
Nick Ashbourne
Senior Writer

Nick has been fascinated with sports since he was first taken to a Toronto Maple Leafs game back in 1998, and he's written about them professionally since 2014.

Nick has covered baseball and hockey for outlets like The Athletic, Sportsnet, and Yahoo Sports, and his sports betting expertise has grown since its legalization in Ontario in 2022. 

Between 2022 and 2023 he worked for a betting startup called NorthStar Bets, and in 2024 he contributed to Oddspedia before joining the Responsible Gambling team.

Sergey Demidov
Sergey Demidov
Head of News Department

Sergey has been in sports journalism since 2007 as a reporter, editor, and manager. He has covered the Olympic Games, soccer World Cups, the World Cup of Hockey in 2016, the European championships, the Stanley Cup Finals, IOC events, and many others. Sergey interviewed the sport's greatest athletes, coaches, and executives. Since 2016, he has been an Independent Senior Editor of NHL.com/ru.

Anna Kravtcova
Anna Kravtcova
Problem Gambling Expert

Ph.D. in organizational psychology, an internationally certified psychologist (EuroPsy 2022, Cognitive behavioural therapy of mindfulness 2020, International Society for Emotional Intelligence 2017, Russian Psychological society 2014, American Psychological Association(Society for Industrial and Organizational Psychologist) 2011), speaker of many international conferences (USA, Brazil, Portugal, Czech Republic, Russia, etc.). TEDx speaker.

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