Understanding Betting Odds in Canada (Decimal vs American)

Understanding betting odds is essential before placing any sports wager, especially when using sports betting sites canada players trust for competitive markets and reliable payouts. Canadian sportsbooks commonly offer two odds formats: decimal and American (also called the moneyline). Both formats represent the same value; only how they are displayed is different.

Both formats show the payouts for the outcome of a sports bet. Typically, at Canadian sportsbooks, you have the option to check out the odds in the two formats. You must understand the formats before you make sports bets. You need to know how the odds are shown, what they mean in terms of the favorite and the underdog, and the payout you will receive from winning a bet, depending on how much money the bet was for.

In this guide, we will explain and provide examples of the betting formats, decimal and American. 

What Are Betting Odds?

Betting odds represent the probability and potential payout of a wager. When looking at the odds in each format, you can see who the favorite is and who the underdog is. 

The odds can change; when the sportsbook sets them, they are not set in stone. However, the odds you get at the time you make the bet are the ones you are locked in on, no matter how much they may change. The odds can change based on events that happen before the game or match, or on how the public is betting on it. One example of odds changing before an event is a player's injury. If the sportsbook sets the odds and then a key player is injured and will not play, the odds can change. 

The sportsbook's main goal is to have even money on both sides of a bet so it can make money. They get hit harder when the public bets much more on a team or player that wins. So, to get even money on both sides, they may alter the odds if the public is betting on one side much more. 

In decimal form, the lower of the two numbers is the favorite. In American form, the favorite is shown by a - in front of the number, while the underdog will have a + in front of it.

Here are some examples of decimal odds and American odds showing the same odds, just in the different format, for games in three of the the top leagues Canadian bettors like to bet on. 

Decimal 

• NHL – Toronto Maple Leafs (2.95) vs. Tampa Bay Lightning (1.40)
• NBA – Toronto Raptors (2.4) vs. New York Knicks (-1.6)
• CFL – Calgary Stampeders (1.7) vs. Winnipeg Blue Bombers (2.2)

American 

• NHL – Toronto Maple Leafs (+195) vs. Tampa Bay Lightning (-240)
• NBA – Toronto Raptors (+140) vs. New York Knicks (-160)
• CFL – Calgary Stampeders (-140) vs. Winnipeg Blue Bombers (+120)

Decimal Odds Explained

Decimal odds show the total return, including the stake. The formula is simple: the stake multiplied by the decimal odds equals the total return. Here are a couple of examples of decimal odds bets for NHL betting and the NBA. The decimal odds are for each team and will show the payout for both.

NHL

NBA 

When it comes to decimal odds, the greater the disparity between the numbers, the more pronounced the favorite and underdog. If the event has even odds, you will see odds of 2.00 for both. Since there is no handicap, such as a spread, in decimal betting, the payout will always be higher when you wager on the underdog rather than the favorite. 

Many regulated sportsbooks in Ontario default to the decimal format, though users can switch to other formats if they want. 

American Odds Explained

In the American odds format, there are three numbers. The positive American odds, denoted by the + in front of the number, show the underdog. In contrast, the negative American odds are the favorite, denoted by the – in front of the number. 

While you can bet the amount you want, American odds are shown in either how much to win C$100 betting on the favorite and how much profit you can make betting C$100 on the underdog. Here is a look at an NHL game, showing each team's payout. 

Montreal Canadians (+160) vs. Edmonton Oilers (-140) 

1. Positive American Odds

In the positive American odds, the Canadians are the underdogs. In this example, if you are betting on the Canadians, you are betting C$100 to win C$160.  

2. Negative American Odds

In the negative American odds, the Oilers are the favorite. In this example, if you are betting on the Oilers, you are betting C$140 to win C$100. 

As you can see in American odds, you are betting more to win less on the favorite and betting less to win more on the underdog. That is because there is no handicap, so you are just betting on the winner of the game or match. 

Decimal vs American Odds — What’s the Difference?

The only difference between decimal and American odds is in how they are shown. Neither form changes the actual value of the bet, since the odds are just presented differently. When you bet on sports, consistency and knowing the teams or players involved are more important than the format you choose. 

American odds are the standard format at Canadian sportsbooks, particularly for sports betting in Ontario under provincially regulated operators. Decimal odds are popular at offshore sportsbooks, but are still popular with Canadian players as well. 

For decimal odds, you are simply multiplying them by the bet amount to see the payout. For positive American odds, they represent the profit on a 100-unit stake and will always be expressed as decimal odds of 2.00 or more. For negative American odds, the stake needed to make a profit of 100 units is shown, and it will always be expressed as a decimal of 1.01 to 1.99.

Main Differences 

How to Convert American Odds to Decimal

It is a simple formula to convert American odds to decimal odds. 

• The formula for converting positive (+) American odds to decimal odds is to divide the odds by 100 and add 1. (American odds / 100 +1 = decimal odds). 
• The formula for converting negative American odds (-) is 100 divided by the odds plus 1. (100 / American odds +1 = decimal odds.) 

Here is an example of the conversion for an NHL game in which the Vancouver Canucks are the favorites at -150 and the New York Rangers are the underdog at +130. 

• Rangers at +130 – 130/100 + 1 (1.3 +1) = Decimal odds of 2.3
• Canucks at -150 – 100/150 +1 (0.66 +1) = Decimal odds of 1.66 

Most Canadian sportsbooks allow users to switch formats instantly in account settings. Also, while the formula for converting American odds to decimal odds is pretty simple, it can be even easier using a betting calculator, which is available on many websites. Simply Google betting calculator, and you can see many where you can not only convert the odds instantly but also see a payout when you put the bet amount. 

Common Mistakes Beginners Make When Reading Odds

There are common mistakes that beginning bettors make when it comes to reading the odds, and you need to avoid them:

• Confusing payout for profit is a big one, as you always need to remember the stake. The payout for decimal odds includes the stake. So, for example, if you make a C$10 bet on the Toronto Raptors at 1.8, the payout is C$18, but the profit is C$8 minus the C$10 stake. 
• Often, beginners misinterpret negative American odds in a few ways. Just as with decimal odds, remember that the stake is part of the payout, not the profit. You need to understand the magnitude of a higher number: the higher the number, the more likely it is to be a favorite, and therefore the more you need to bet to make C$100. 
• You also need to know about the vig, which is also called the juice. The vig is the fee paid to the sportsbook. And for abet it will have -105 or -110 for each team. In negative American betting odds, that means you will have to bet C$110 or C$105 to win the C$100 as the vig is C$10 (-110) or $ (1-05). 

Knowing the two bet formats means understanding that neither formula offers a better value than the other.

Final Thoughts

No matter the format of the odds you need to understand them, as it will improve your sports betting decision making. Knowing how to read the odds can help you compare lines across sportsbooks. You can have more than one sportsbook account and while the odds are similar at various sites they can be a little different. You always want to take the bet with the best odds to get the more bang for your buck. 

Knowing how to read the odds helps build confidence when making bets. If you understand the odds you are aware of the profit you will make and how much you will win by betting a certain amount with specific odds. 

Remember to always bet responsibly and follow the golden rule of gambling in only wager what you can afford to lose.