Bookmakers usually pay winners on the basis of the calculated odds. There are various ways of displaying these odds.

Three of the most popular odds displaying systems used by bookmakers are decimal odds, European odds and international odds.

Most Australian betting operators use decimal odds system. Bookies usually use two basic frameworks to calculate these odds.

• Tote (Parimutuel betting odds)
• Fixed Odds System

Tote (Parimutuel betting odds)

This type of framework allows consumers to place a particular type of bet in a pool. Bookmakers later calculate all bets simply by keeping similar bets in a pool among other winning bets.

This framework allows bookmakers to calculate odds on the basis of bets already placed. On the basis of these calculations, the bookmaker will announce the odds that you will receive.

This procedure is based on the number of bets received till a certain specified time. Consequently, you will only be able to see the odds once the betting is closed.

This technique will get more complicated if the bookmakers decide to take bets during the game.

On the other hand, if you are a bookmaker, this technique is very low risk and easy to handle once you decide to follow the Australian rules of betting. This way you will be aware of the margin you will receive beforehand.

You can easily set the percentage you will take on the wagers.

Fixed Odds Betting

In contrast to Tote, fixed odds betting system allows bookmakers to declare odds before taking bets. This way, punters know the exact amount they will receive before waging their bet.

However, unlike tote, even if the punters are betting online on the same outcome, they will get different odds. This way, bookies have the leisure to maneuver the odd in order to earn profit irrespective of the outcome of the sporting event.

According to this framework, if punters decide to bet heavily on team X, the bookmaker will have the freedom to decrease the odds of team X and consequently increase the odds of team Y.

This strategy usually attracts wagers for team Y. This way, no matter what the result is, the bookie will end up making profit. Fixed odds betting system may result in punters losing more money.

This type of betting is better than ‘Tote’ if the bookie decides to take bets during the game.

Although these systems are very different from each other, the odds that finally come out are very similar.

Besides, they try to keep odds a little lower, but close to their competitor in order to maintain goodwill in the business.