Moneyline Betting Explained: Meaning, Odds & How It Works

Moneyline bets are the simplest form of wagering on a sporting event. Its primary goal is to predict the winner of the game. Unlike other bets, moneyline betting is not focused on point spreads, the final score, or other aspects of the game. You will find moneyline bets in both team and individual sports betting. 

In this guide we are going to look at how moneyline bets work, how to read moneyline odds, as well as go through several comprehensive examples.

What Is a Moneyline Bet?

A moneyline bet is a standard betting market where bettors are wagering on the potential winner of the match, game, or event. It is the most common bet in sports betting and applies to essentially any sport with at least two competing sides. 

If this bet sounds familiar, it is probably because you have already seen it before, but under a different name. While the term “moneyline bet” is commonly used in the United States and several other American countries, punters in the United Kingdom, most of Europe, and some other countries in the world know it as the match win, 1×2, outright win, and others.

Since it is largely considered an American term, you will find it in betting on such sports popular in the US as the NFL, basketball, especially the NBA, baseball, and others. But of course, if you want to bet on tennis, football (soccer), or any type of martial arts, you can place a wager on moneyline too.

The easy to understand concept makes this bet a good first step for beginner bettors. At the same time, since it is directly focused on the outcome of the event, it retains interest among experienced punters too.

What Does Moneyline Mean?

While names like “outright win” or “match win” clearly point to the goal of the bet, where does the name “moneyline” come from? The “money” part seems to be pretty straightforward, but what “line” are we talking about here?

It actually refers to the posted betting terms a bookmaker offers to the bettors. The odds can be expressed in various ways, depending on the nature of the bet. For example, for point spread bets the terms are expressed in points, so in this case we are talking about a point spread line. 

In a moneyline, the terms are expressed in monetary value, i.e. they show you how much you stand to win or how much you need to wager to win a certain amount. Hence the “money” part. 

Another point of confusion can be the distinction between “moneyline” and a “moneyline bet”. We have already established that the first is the betting terms. The moneyline bet is the actual wager you place on the market. However, in modern sports betting you might often hear “moneyline” used in both cases.

How Do Moneyline Bets Work?

Once we have determined the nature of moneyline, it is time to answer another question: how does moneyline betting work? As any other sports bet, it shows the implied probability of winning for the teams or players involved. Bookmakers assign odds accordingly, and bettors can wager their money on either the favourite or the underdog. 

The favourite is the team or the player that is perceived to have a bigger chance to win the event due to their skill, strength, physical form, or experience. You will find their odds expressed with a minus next to the figure.

The underdog, on the other hand, is considered to be more likely to lose for the same reasons. Bookmakers give their odds with a plus next to the number. You can still place a wager on them to win the event. 

In this case, you may ask: why bet on an underdog if they are perceived as the one more likely to lose? Well, the thing is that moneyline betting is gambling, and just like any other type of gambling, the outcome can’t be guaranteed with a 100% certainty. Favourites do lose and underdogs do win, so how you bet depends on your judgement and analysis of the field.

Identically to any other bet, if your predicted outcome turns out to be correct, you will get a payout proportional to the offered odds and your stake size. You will notice that a win on the favourite will generally pay less than a win on the underdog because the latters usually have higher odds. 

This happens because, while nothing is guaranteed, there is a higher chance that the favourite will win. This causes more punters to wager their money on favourites. This means, if the favourite wins, the bookmakers will have to pay out a large amount. To balance this out, they offer lower odds, and correspondingly, a lower return on stakes. 

For the same reason, underdogs have higher odds and higher payouts. Fewer people risk their bets on someone who is perceived as less likely to win, meaning the bookmakers won’t have to pay out as much, that’s why higher odds are viable.

How to Read Moneyline Odds

Moneyline odds have their own format, different from fractional or decimal odds. Since the term “moneyline” is mostly used in American sports betting, these odds are also often referred to as American. Here numbers are given with a plus (+) or a minus (-). The team or player with negative odds is the favourite, while the ones with a plus are the underdog.

The negative odds show how much you need to wager to win £100 (or $100). The formula is 100/odds x wager. So if the odds are -125 and you stake £10, you will win 100/125 x 10 = £8. Your total payout will be £8 (winnings) + £10 (initial stake) = £18.

The positive odds show how much you stand to win if you wager £100 (or $100). The formula is slightly different: odds/100 x wager. So if the odds are +125 and you stake £10, you will win 125/100 x 10 = £12.5. Your total payout will be £12.5 (winnings) + £10 (initial stake) = £22.5

You are less likely to find fractional or decimal odds in moneyline betting because the bet will probably be called an outright or a match win. However, it bears repeating how to calculate these odds.

Fractional odds represent the favourite if the lower (second) number is higher and the underdog if the upper (first) number is higher. In both cases, the first number determines how much you stand to win if your stake is equal to the second number. The formula is upper number / lower number x stake. Then you add the initial stake for the total payout.

• Betting £10 on a favourite with 1/4 odds: 1/4 x 10 = £2.5 (win). Total payout is £12.5
• Betting £10 on an underdog with 4/1 odds: 4/1 x 10 = £40 (win). Total payout is £50.

Decimal odds show you how much you stand to win on each £1 you stake and already include your initial stake in the calculations. The formula runs like this: stake x odds, and if you want to know your net profit, subtract your initial stake from that number.

• Betting £10 on a favourite with 1.25 odds: 10 x 1.25 = £12.5 (total payout). Net profit is £2.5.
• Betting £10 on an underdog with 2.25 odds: 10 x 2.25 = £22.5 (total payout). Net profit is £12.5.

Below we compare all types of odds:

Moneyline Betting Example

Let’s say, you are betting on a Premier League match between Team A and Team B. The bookmaker offers the following moneyline betting odds:

• Team A: -133 (the favourite)
• Team B: +120 (the underdog)

If you wager the same stake on either of the sides (for example, £5), here is what you can expect:

• If you bet on the favourite Team A and they win, your payout will be 100/133 x 5 = £3.75. This is your net profit. Your total payout will be £3.75 + £5 = £8.75.
• If you bet on the underdog Team B and they win, your payout will be 120/100 x 5 = £6. This is your net profit. Your total payout will be £6 + £5 = £11.
• If you bet on either of the teams and they lose, you will lose your stake.

Moneyline vs Other Bet Types

Two-Way vs Three-Way Moneyline Bets

You will notice that moneyline bets sometimes offer only two betting options: bet on the favourite or bet on the underdog. These are also called two-way moneyline bets. They are most straightforward in sports where a match can’t end in a draw according to the rules. For example, in team games like basketball or individual sports like tennis, if a game ends in a draw, the sides will play extra time or special rounds to produce a clear win. 

But how are sports like football (soccer), where a draw is a legitimate outcome, handled? In this case, bettors can be offered a three-way moneyline bet, which means they can also bet on the draw and collect a payout if that’s how the match ends. 

Another possible solution is to offer two betting options and specify how a possible draw will be settled. Typically, a refund (or push) is offered to bettors who wagered on either of the teams to win. 

Common Strategies & Use of Moneyline Bets

We have answered in detail the question “What is moneyline betting?” and reviewed how it works. But when should you wager on moneyline?

• If the sporting event has a clear favourite: if one of the teams has a much higher chance of winning, wagering a moneyline on them can be a safer option. Keep in mind, though, that the payout might be lower.
• If you strongly believe in the underdog: if you think they are far more likely to win than the bookmaker is pricing them, placing a moneyline bet on the underdog can bring a sizable payout.
• If you don’t want to bet on point spread: some bettors either don’t have enough experience to bet on point spread with any level of informed decision making, or they just find them too risky. In this case, moneyline bet is a more straightforward option.

FAQ

What happens if a match ends in a draw in a moneyline bet?

If you bet on a three-way moneyline bet, a draw is a betting option. You win if you wagered on a draw, you lose if you wagered on either team to win. If you bet on a two-way moneyline bet, a draw is settled according to the market regulations (usually, a refund). If the sport doesn’t allow for a draw, the match will continue until a clear winner is produced.

Is a moneyline bet better than a point spread bet?

There is no definite answer to this question. These bets serve different purposes. Choosing one over another solely depends on your strategy, the amount of risk you are willing to take, your budget, betting experience, and projected outcome of the game.

How are moneyline odds calculated?

Bookmakers take into consideration several factors to determine moneyline odds: team experience, skills, current squad, physical form, recent performances, historical performances against a particular rival, home advantage, as well as betting activity.

Can you place live moneyline bets during a match?

Yes, it is entirely possible to place live moneyline bets during a match. As the game unfolds, bookmakers may adjust the odds based on the developments. Bettors can place live moneyline bets taking these factors into consideration.

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