Odds are a statistical value that reflects the probability of a certain event occurring. In the context of gambling, there exist two types of odds: payout odds and true odds (aka mathematical odds).
Payout Odds vs True Odds
Payout odds are used indicate the amount of money a player will receive if they win a particular bet. For example, the payout odds for winning a hand of blackjack are usually 1:1 because the dealer and the player have similar chances of winning. On the other hand, in roulette, the payout for a bet on a single number is set at 35 to 1 because this type of wager is much harder to win.
True odds are the mathematically correct probabilities of a certain event occurring. For example, the true probability of winning a bet on a single number in European wheel roulette is 37 to 1 (2.7%). True odds can be found in probabilities charts, which are widely available in gambling-themed books and online.
True odds will always we slightly lower than payout odds. The difference between the two values is what allows the casino to turn a profit without having to charge players a fee each time they play.
Odds:
- The probability of a certain event occurring.
