Fixed Odds Betting refers to a form of wagering where the punter knows the exact odds they will receive when placing a bet. The odds are “fixed” at the time of the bet, meaning they won’t change regardless of any shifts in the market or external factors after the wager is placed. This system is in contrast to pari-mutuel betting, where final odds aren’t determined until all bets are in, and the pool is closed.
In fixed odds betting, if the event wagered on occurs, the bettor receives their stake multiplied by the odds agreed upon at the time of the bet.
How are fixed odds determined?
Fixed odds are set by bookmakers or betting platforms based on their analysis, market demand, and other factors. They aim to offer odds that both attract bettors and maintain profitability.
Is fixed odds betting exclusive to sports?
While fixed odds betting is prevalent in sports, it isn’t exclusive to it. Fixed odds can also be found in wagering on events like political elections, entertainment awards, or any event with a determinable outcome.
What happens if the odds change after placing a fixed odds bet?
Once a fixed odds bet is placed, the odds are locked in for that particular bet. Any subsequent changes in odds won’t affect bets already made. If you bet at 5/1 odds, you’ll be paid out at those odds, even if the odds later shift to 4/1 or 6/1.
How do fixed odds compare to spread betting?
Fixed odds betting involves wagering on a specific outcome at set odds. In contrast, spread betting involves betting on the accuracy of a prediction, rather than a simple win/lose outcome. Payouts in spread betting vary based on how accurate or far off the bet is from the actual result.
Are the payouts always higher in fixed odds betting compared to pari-mutuel betting?
Not necessarily. The payouts in fixed odds betting depend on the odds at which the bet was placed. In contrast, pari-mutuel betting payouts are determined by dividing the total pool by all winning bets. Depending on the event and wagers, either system could offer a higher payout.