If you’re captivated by the drama and unpredictability of sports, turning spectators into stakeholders with a bet on an event’s outcome is one way to intensify the experience. It’s a thrilling fusion of psychology, strategy, and chance that has evolved into a mainstream industry worth hundreds of billions.

To win, you need to understand how odds work and use them to your advantage. A bet’s odds are a reflection of probability that also indicates its potential payout. Higher odds suggest an event is less likely to happen but carries a bigger pay-out if it does. Conversely, lower odds are more indicative of an event’s likelihood and offer a smaller payout.

Odds are typically presented as decimal numbers and displayed in increments of a half-point (.5), but some sports betting markets display them in increments of a full point. In these cases, the larger number denotes the favorite and the smaller number is the underdog.

The key to winning at sports betting is to develop a system that profits on a consistent basis with wins outnumbering and outpacing losses. To achieve this, you need to exercise discipline in various aspects of your strategy, including bet sizing and money management. For example, it’s best to limit your bet size to 1-5% of your bankroll. It’s also advisable to avoid increasing your bet size after a loss as this can lead to more losses. Moreover, you should always be willing to cut your losses.