How we calculate Odds Payout

February 11, 2019

Bookmakers will never pay out the max 100% of the stakes they receive, they will keep some of that as their profit. Payout margins are usually around 95%, which means a bookmaker will make 5% profit on the markets they produce. This isn’t an exact science of course and depends on the different outcomes that are backed, but a bookmaker will try to balance the book where they pay £95 for every £100 they collect.

When creating betting odds, bookmakers use their knowledge, who they think will win, how strongly that selection is fancied and a margin. This is the calculation that forms the odds that are offered to you by the bookmakers.

Using the game above between Liverpool and Chelsea, we can calculate the payout margins on that game. Liverpool are 2.10, the draw is 3.60 and Chelsea are 3.40. Converting the odds for all three outcomes to percentages, then adding them together will reveal the over round that the bookmakers have put in, giving us their profit margin.

Liverpool: 2.10

Draw: 3.60

Chelsea: 3.40

(100 / 2.10) + (100 / 3.60) + (100 / 3.40) = 47.62 + 27.78 + 29.41 = 104.81

The closer this number is to 100 means that you are getting a better deal from your bookmaker, the 104.81 is lower than 105, which means it is a good payout in this example, meaning you should bet now, and this is something that many new sites aim for.

To calculate the payout percentage we do one more calculation here

——————————————————– =0.952

1 / 2.10 + 1 / 3.60 + 1 / 3.40

0.952 means that 95.2% of the money is paid out, giving a calculated margin of 4.8% and something that a new customer should be looking for when signing up to a brand new betting site.

Best 10 New Bookmakers

	£10	SIGN UP HERE
#ad. 18+. Gamble Responsibly. Gambleaware.org. New customers only. £10 in real money. Bets placed on sports at odds of 2.00 ore more to qualify. Bets must be placed 24 hours within of registration. £10 free bets must be wagered on sports. Cashback is cash without restrictions. - Full Terms Apply
	£25	SIGN UP HERE
18+ New UK customers. Bet £10 on accas with 4+ legs, min odds 3/1 (4.0). Get 4x £5 Free Bets and 50 Free Spins, valid for 7 days on selected bets and games only. T&Cs apply. BeGambleAware.org
	0	SIGN UP HERE

	£30	SIGN UP HERE
New online customers only. One offer per customer. Bet £/€10+ at 1/1 (2.0) odds or higher within 7 days of signup to get: £/€20 Tote Credit, £/€10 Free Bet & 20 Free Spins on Big Bass Bonanza (credited within 48h). Qualifying bet must be your first. 7-day expiry. 18+. T&Cs apply. Gambleaware.org.
	£10	SIGN UP HERE
T&Cs apply. 18+ New customers only. You must place a single win-only bet of £10 or more with odds of evens (2.00) or greater to qualify. Money back as £10 in free bets. Free bet is credited once the qualifying bet has settled. Must use code B10G10 when creating an account.
	10	SIGN UP HERE
100% Casino Bonus up to £100 (new players only), £10 min deposit, no max cash out, 40x wagering, £5 max bet with active bonus, eligibility restricted for suspected abuse, cashback unrestricted, Skrill & Neteller excluded, T&Cs apply. Free bet min odds 2.0; free bet value deducted from winnings.
	£40	SIGN UP HERE
New customers only. 7 days to place qualifying bet of £10 at 1/1 (2.0) to receive 4 x £10 Free Bets: 1 x £10 football, 1 x £10 horse racing & 2 x £10 Bet Builders. Free Bets cannot be used on e-sports and non UK/IE horse racing. 7 day expiry. Exclusions apply. Stake not returned T&Cs apply. 18+ GambleAware.org
	£20	SIGN UP HERE
New customers sign up with code "bet50get20". Deposit £50 or more and place a £50 bet at min odds 2.0. Get a £20 free bet. Free bets expire after 7 days. Full terms apply. 18+ BeGambleAware.org
	£30	SIGN UP HERE
Only available to new verified customers residing in the UK. Place a first bet (min. £10). Get £30 freebet if you lose. T&Cs apply.
	£25	SIGN UP HERE
18+ New Accounts Only. Offers: Min stake £10. Max refund £100. Refunds as free bets. Win or win part of E/W single bets only. Excludes multiple & ante post bets. Best Odds Guaranteed: From 10am on day. Price taken or SP. Full T&C's apply.