How do handicap bets work?

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If you’re new to the world of sports betting, you might get overwhelmed with new terminology. One such term is handicap sports betting or simply “handicaps”. Continue reading to discover more including the meaning of handicap betting, how it works and the different types of handicap sports betting.

What is a handicap in sports betting?

A handicap is a type of bet that theoretically evens up the chances of both players or teams winning a specific event. Let’s imagine a tournament like the FA Cup.The reason why it’s so popular, apart from being the world’s oldest cup tournament, is that it often pits lower league teams like Yeovil Town from League Two against a football giant like Liverpool.

But for sports bettors and sportsbooks alike, games like these create a potential roadblock.

That’s because there’s usually limited value in betting on favourites Liverpool to win. Similarly, betting on the underdog Yeovil Town also represents little to no value.

So what’s the solution to this apparent imbalance? The answer is handicap betting.

How does handicap sports betting work?

Handicaps work by giving one player or side an advantage. Let’s consider a Champions League match between Real Madrid and Borussia Dortmund. According to many sportsbooks, Madrid are strong favorites to win the match, as reflected in the odds below:

• Real Madrid 1.56 (-175)
• Borussia Dortmund 5.5 (+450).

By employing a handicap, Dortmund could receive a one-goal advantage before the match starts. Another way of looking at it would be to give Madrid a one-goal disadvantage, i.e., a handicap. On a sportsbook, such a handicap would look like:

• Real Madrid (-1) - Borussia Dortmund (+1).

So with a one-goal advantage before the match starts, Dortmund’s odds of winning will automatically decrease, while Real Madrid’s odds of winning will increase. This means that the betting lines will now change to factor in Dortmund’s advantage and Madrid’s disadvantage.

An example of these new probabilities expressed as odds could be:

• Real Madrid (-1) @ 2.05 (+105)
• Borussia Dortmund (+1) @ 1.80 (-125).

With the playing field more balanced, sports bettors are more likely to wager on the outcome of the match. However, this is where the world of handicap betting gets more interesting.

Types of handicap sports betting

There are two main types of handicaps in sports betting; European and Asian handicaps.

Whereas European handicaps only use whole numbers, Asian handicaps use half, quarters and whole numbers. Let’s look at different scenarios for each type of handicap.

European handicaps

A European handicap is a method of betting that requires a team or player to not only win a match, but win by a certain margin of goals or points. European handicaps can also be used to bet on teams to lose by a certain margin too. So for games that bettors think will be close, handicaps can be useful if you want to bet on a narrow win or even a draw if one team has a slight handicap like (-1).

With games with a clear favourite like Real Madrid vs Borussia Dortmund, European handicap betting offers a method of winning a significant amount on Real Madrid who, according to sportsbooks, are expected to win comfortably.

Where Madrid’s odds to win outright might not be valuable enough for bettors, a European handicap such as Real Madrid (-2) - Borussia Dortmund (+2) could present more betting opportunities. For example, in this case, betting on a Dortmund win would pay out even if they lose by a one-goal deficit.

Asian handicap bets with half numbers

As there’s no such thing a half or quarter goal, the Asian handicaps that use half and quarter numbers eliminate the possibility of draws (or ties) in sports like Soccer and NHL. Which is why these types of Asian handicaps are sometimes called no draw handicaps.

For example, in an Asian handicap using half numbers, Borussia Dortmund could receive a 1.5-goal lead over Real Madrid, resulting in a handicap that looks like:

• Real Madrid (-1.5) - Borussia Dortmund (+1.5).

If a bettor wagers on Real Madrid, they would have to win by at least a two-goal margin, such as 2-0, 3-1, 3-0, 4-2, etc for the bet to win.

However, if the bettor puts money on Borussia Dortmund, any draw or even a one-goal defeat would also result in a winning bet, including 1-0, 1-1, 1-2, 2-1, 2-2, etc. Due to the half-goal advantage and disadvantage given to the teams, there’s no way for the match to end in a draw using this type of Asian handicap.

Asian handicap bets with quarter numbers

Just like half numbers in Asian handicaps, quarter numbers also remove the possibility of a draw. For instance, let’s imagine the Over/Under (O/U) on goals scored by Real Madrid versus Borussia Dortmund are:

• Over 2.25 goals/Under 2.25 goals

By betting $100 on “Over 2.25 goals”, it’s essentially like placing two separate bets.

These bets will work out as half of your money ($50) on “Over 2.0” and the other $50 on “Over 2.5”. The average of the two bets being 2.25, which is the target number of goals.

Half losses in Asian handicaps

So if a bettor wagers on Over 2.25 goals, to fully win the bet, Real Madrid would need to score three or more goals. If Real Madrid only score two goals, the bet is considered as half lost or a half loss in Asian handicap betting. That’s because Real Madrid will have matched, but not surpassed, the “$50 on Over 2.0” portion of the bet.

In this case, that $50, i.e., half the bettor’s initial stake will be returned to their account. The other “$50 on Over 2.5”, will be a loss for the bettor as Real Madrid did not match or surpass the required 2.5 goals.

Half wins in Asian handicaps

Alternatively, a half win is only possible when betting the Over where the line ends in .75 or when betting the Under where the line ends in .25.

For example, betting $100 on the Over on 2.75 total goals.

Again, betting the Over on 2.75 is like placing two best, $50 on Over 2.5 and $50 on Over 3.0.

So if Real Madrid wins 2-1, i.e., three total goals, $50 of the bettor’s stake (on Over 2.5) wins, while the other $50 (on Over 3,0) is returned, resulting in a half win.

Asian handicap bets with whole numbers

In Asian handicaps that employ whole numbers, theoretical draws will be possible, such as Real Madrid with a (-1) handicap winning 1-0. These theoretical draws are known as a push and in these scenarios, no winner is declared and a bettor will get their initial stake returned.

Line and spread betting

Along with terms like handicap betting, you may have also heard of line and spread betting. The good news is that all three terms, in essence, describe similar concepts. That’s because line and spread betting are different types of handicaps.

Example of line betting

Line betting is only available for sports where there are two possible outcomes. A “line” will typically represent the point spread or handicap that is the closest to a 50/50 situation. That way, punters are more likely to place bets, and place them on either team or player.

For example, in the NBA , if a sportsbook like Wildz Sports believes the Philadelphia 76ers are 10 points better than the Houston Rockets, they can handicap the 76ers by 10 points, i.e., Philadelphia (-10) - Houston (+10).

The line bet then becomes the 76ers to win by more than 10.5 points or the Rockets to get within 10.5 points.

Example of spread betting

Point spreads are handicaps placed on a team or player based on whether they’re expected to win or lose by a certain margin. Spreads work best when there’s a clear favourite and an underdog. In the NFL for instance, handicaps in multiples of 3 and 7 are very common due to the sport’s scoring system of three points for a field goal and seven points for a touchdown (including an extra point).

So a -10 spread for the San Francisco 49ers versus the Tennessee Titans means that sportsbooks believe the 49ers are favoured by a touchdown and a field goal. At the same time, a +10 spread for the Titans means that they are considered as the underdog by a touchdown and a field goal.

What this means for those betting the Titans is that they must either win the game outright or lose by fewer than 10 points in order to win. For those wagering on the 49ers, they must win by more than 10 points in order to cover the spread, i.e., win the bet.

How to get expected value from handicap bets

Another benefit of handicaps is that they’re great for experienced bettors on the lookout for positive expected value (EV) wagers. That’s because by betting on the underdog, bettors also receive a positive handicap, giving them a theoretical head start versus the sportsbook.

So if an underdog like Borussia Dortmund is given a +1.5 handicap, they can lose by up to one 1 goal (0-1, 1-2, 2-3, etc) and bets on them would still win. Consequently, betting on a handicapped underdog can present potential positive EV and somewhat of a safety net for bettors.

Because sportsbooks often undervalue underdogs, they present profitable betting possibilities. Hence, bettors can take advantage of handicaps if they can work out when an underdog might have a better chance of winning than the odds suggest.