Nguyễn Phương Linh-BAFNIU21481
QUESTION 1 : Find an example of betting game/ gambling and odds in real life and explain how it
works (which was not discussed in class yet).
Sports betting is a fun and popular way of gambling, found in sports like football, dog racing, and even
over/under betting. At the heart of this is the odds set by bookmakers, which help determine how much
money you could win depending on the outcome of a game. While the idea of betting might seem
straightforward, understanding how odds work can really shed light on how things play out in real life.
In sports betting, people bet on the outcome of events or games. Let’s say it’s the World Cup, and
there’s a football match between Brazil and South Korea. The bookmaker sets the odds based on how
likely they think each team is to win. These odds help decide how much money a bettor can make from
their bet.
For example, here’s what the odds might look like for that match:
Brazil to win: Odds = 2.00
Draw: Odds = 3.50
South Korea to win: Odds = 3.00
If you were placing a bet, you’d choose one of these outcomes. The odds show how much you’ll win
for every dollar you bet. So if you bet $1 on Brazil winning at 2.00 odds, you’d get $2 if Brazil wins
(your $1 bet plus $1 profit). If you bet on a draw at 3.50 odds, you’d win $3.50 if the match ends in a
draw. And if South Korea wins and you bet on them at 3.00 odds, you’d get $3 for your $1 bet.
These odds show how the bookmaker thinks the game will go. The lower the odds, the more likely the
outcome is, which means a smaller payout. Higher odds mean the outcome is less likely to happen, but
the reward is bigger if it does.
There are a few types of bets you can make on sports events, like odds betting, over/under, and point
spreads. Odds betting is the easiest, where you pick who you think will win or if it’ll be a draw. With
over/under, you bet on the total number of goals scored in the match, like whether it will be over or
under 2.5 goals. Point spread betting is a little more complicated. Here, one team is given a handicap to
level the playing field. For example, if Brazil is much stronger than South Korea, Brazil might start
with a -1 goal handicap, meaning they have to win by more than 1 goal for your bet to win.
Odds can also be shown in different ways, like decimal odds, fractional odds, and American odds.
Decimal odds are most common in places like Europe and Canada and are easy to understand. For
example, odds of 2.00 means you’ll double your money if you win. In the UK, you might see fractional
odds like 5/2, which shows how much profit you make compared to your stake. In the US, you’ll see
American odds (e.g., +200 or -150), which show how much you could win with a $100 bet or how
much you need to bet to win $100.
Odds can also change. If there’s a big change before the game, like a key player getting injured, the
bookmaker might adjust the odds to reflect that. If a lot of people start betting on South Korea, the odds
might go up to balance out the risk the bookmaker is taking.
The risk and reward part of sports betting is something every bettor has to think about. If you bet on
something with lower odds, it’s more likely to happen, but the reward is smaller. If you bet on
something with higher odds, it’s less likely to happen, but the payout is much bigger. People who take
higher risks are hoping for a bigger reward, but there’s also more chance of losing.
In the end, sports betting is all about understanding the odds and how they affect your potential
winnings. The lower the odds, the more likely the outcome, but with a smaller payoff. The higher the
odds, the less likely the event, but if it happens, you get a bigger reward. Betting is fun, but it’s also a
game of balancing risk and reward.
