What is Spread Betting and How Does it Work?

30.09.2023 12:00

Dive into the world of spread betting, a widely-recognized betting format chiefly utilized in NFL, college football, NBA and more. In the realm of sports, teams and competitions are not uniformly matched, introducing the need for spread betting.

 

What is a point spread?

Often referred to as “the spread”, the point spread is a crucial number developed by oddsmakers at sportsbooks. Serving as a handicap between two competing teams, spread betting is designed to level the playing field, given the differing abilities of teams. This approach, termed spread betting, is becoming a regular topic in sports conversations. It's predominantly used in american leagues like NFL and college football, as well as NBA and NCAA basketball. In baseball terms, this spread bet is labeled the run line, and in hockey, it assumes the name, the puck line.

 

How to decipher a point spread

For clarity on how spread betting works, consider the Super Bowl LIV's point spread, featuring the San Francisco 49ers against the Kansas City Chiefs.

The Handicap: Upon thorough assessment, bookmakers deduced a likely difference of one point between the teams, leading to a 1.5 points handicap. This half-point increment, known as a hook, averts any chance of a draw since half-points are unattainable in major sports events.

The Favorite: Kansas City, perceived as the more probable champions, were labeled with a -1.5, indicating an expected triumph by more than one point. A spread bet on Kansas City dictated that they outscore their opponent by more than one point. A win by just one point would render the bet unsuccessful.

The Underdog: In contrast, the San Francisco 49ers, less favored to win, were the underdogs with a +1.5 spread. A win, or a loss by just one point, was necessary for a fruitful bet on them. A defeat by more than one point would result in a lost bet.

The Vig: In spread betting, there's always a vig or juice, signifying the price of the bet. Referring to the game mentioned, a 10/11 vig (equivalent to 1.91 in decimal odds) was set for both teams. This translates to a $110 bet aiming for a $100 win.

Covering the Spread: The final score of the Super Bowl was 31-20 in favor of Kansas City. Their 11-point victory exceeded the -1.5-point spread, meaning they successfully covered the spread.

 

Betting against the point spread

Prior to placing a spread bet, consider who might cover the spread, the ideal time to wager, and the possible earnings.

Which Team?: Determine your team preference. Will you back the favorites or side with the underdogs?

Why the Shift?: The point spread is susceptible to changes influenced by factors like professional bets, unequal distribution of wagers, and unforeseen game-related news.

Decoding 10/11: The 10/11 value (or 1.91 in decimal odds) embodies the vig, which is the fee charged by bookmakers. With such a vig, a bettor needs to stake $110 to target a $100 win.

Potential Earnings?: Your spread betting returns hinge on the bet amount and the odds at the time. With odds of 5/6 (1.83 in decimal odds), a bet of $120 aims for a $100 win.

 

Crafting the point spread

Various aspects sway the decision of bookmakers:

• Team skills
• Recent performance
• Venue of the game
• Player injuries
• Weather conditions

Baseball and Spread Betting: Here, it's named the run line, typically fixed at 1.5. For instance, in the 2019 World Series Game 7, the Houston Astros (-1.5) carried a vig of 17/11 (2.55 in decimal odds). Betting $100 on their victory by two or more runs could secure $155. Conversely, the Washington Nationals (+1.5) with a vig of 6/11 (1.54 in decimal odds) required a $185 stake for a $100 win.

Hockey Spread Betting: In hockey, it's the puck line, usually pegged at 1.5. The Tampa Bay (-1.5), for example, had a vig of 16/11 (2.45 in decimal odds). A bet of $100 could yield $145, provided they triumphed by a margin of two or more goals. The Detroit Red Wings (+1.5) came with a vig of 19/39 (1.49 in decimal odds), demanding a $195 stake for a prospective $100 win.

 

 

FAQ

1️⃣ What does +8.5 spread mean in betting?

In betting scenarios, a plus (+) sign before a team's odds indicates they're the underdog. For instance, "Celtics -8.5" suggests the Celtics are projected to win with a margin of 8.5 points. On the flip side, "Hornets +8.5" implies you're wagering on the Hornets to win, or at the very least, not lose by more than 8.5 points.

 

2️⃣ Is a spread a good bet?

Betting on the spread can be beneficial in certain situations. One such situation is when there's a close match-up between the teams, increasing your chances of a favorable outcome. Additionally, if you aim for higher returns, spread betting might be a strategic option.

 

3️⃣ How do you read a spread?

A point spread indicates the anticipated difference in scores between two competing teams. It's showcased as either a negative or positive value. For a spread of 3 points, it's represented as both -3 and +3. Here, the favored team is associated with the negative number (-3) while the underdog has the positive value (+3).

 

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