Sports Betting Basics: A Complete Beginners Guide

Sports betting is the act of placing a wager on the outcome of a sporting event. What was once limited to Las Vegas sportsbooks and offshore websites is now a regulated, legal industry in the majority of US states. Tens of millions of Americans bet on sports each year through licensed online sportsbooks and retail locations.

If you are new to sports betting, the volume of terminology, bet types, and strategies can feel overwhelming. This guide breaks everything down from the ground up. You will learn how odds work, what the most common bet types are, how to actually place a bet, and what mistakes to avoid as a beginner. No prior knowledge is assumed.

By the end of this guide, you will understand the fundamentals well enough to place informed bets and continue learning with confidence.

What Is Sports Betting?

Sports betting is a wager placed on the predicted outcome of a sporting event. You place a bet with a sportsbook, which is a business licensed to accept wagers. If your prediction is correct, you win money based on the odds attached to your bet. If your prediction is wrong, you lose the amount you wagered.

Sportsbooks are not charities. They build a profit margin into every bet they offer. This margin, called the vig or juice, is how they make money regardless of which side wins. Understanding this reality is foundational: the sportsbook has a mathematical edge on every bet, and your job as a bettor is to make informed decisions that give you the best chance of winning despite that edge.

The Legal Landscape

Sports betting is legal in the majority of US states, with each state setting its own rules about which platforms can operate, what sports can be wagered on, and whether bets can be placed online, in person, or both. If you are in a state where sports betting is legal, you can sign up for a licensed sportsbook, deposit funds, and place bets from your phone or computer.

Always use a licensed, regulated sportsbook. Legal sportsbooks are required to protect your funds, offer responsible gambling tools, and operate under state oversight. Offshore or unlicensed operators offer none of these protections.

How Sports Betting Odds Work

Odds are the foundation of every sports bet. They serve two purposes: they tell you how likely a sportsbook thinks an outcome is, and they tell you how much you will win if your bet is correct.

American Odds Format

In the United States, odds are most commonly displayed in American format, which uses plus (+) and minus (-) signs.

Negative odds (-) tell you how much you need to bet to win $100. For example, odds of -150 mean you must wager $150 to win $100 in profit. Negative odds indicate the favored outcome, the one the sportsbook considers more likely to happen.

Positive odds (+) tell you how much you win on a $100 bet. For example, odds of +200 mean a $100 bet returns $200 in profit. Positive odds indicate the underdog, the outcome the sportsbook considers less likely.

Calculating Payouts

Payout calculations depend on whether the odds are positive or negative:

• Negative odds: Divide 100 by the odds number (ignoring the minus sign), then multiply by your bet amount. At -150, a $30 bet wins $20 in profit ($30 / 1.5 = $20).
• Positive odds: Divide the odds number by 100, then multiply by your bet amount. At +200, a $50 bet wins $100 in profit ($50 x 2 = $100).

Your total payout always includes your original wager plus your profit. A $50 bet at +200 pays out $150 total ($50 stake + $100 profit).

Implied Probability

Odds also reflect an implied probability, which is the sportsbook's estimated likelihood of an outcome. Odds of -200 imply roughly a 66.7% chance, while odds of +200 imply roughly a 33.3% chance. Understanding implied probability helps you evaluate whether a bet offers value relative to your own assessment of the matchup.

Why Odds Change

Odds are not fixed once they are posted. Sportsbooks adjust their lines based on several factors between the time a market opens and when the game begins. Heavy betting action on one side will cause the sportsbook to shift the line to balance its exposure. Injury reports, weather forecasts, lineup changes, and breaking news all influence line movement. The odds you see on Monday morning for a Sunday NFL game may look different by kickoff. This is why many experienced bettors pay attention to when they place their bets and compare lines across multiple sportsbooks to find the best available number.

Other Odds Formats

While American odds are standard in the United States, you will occasionally encounter two other formats. Decimal odds represent your total return per dollar wagered. Odds of 2.50 mean a $10 bet returns $25 total ($15 profit plus your $10 stake). Fractional odds, common in the United Kingdom, show profit relative to stake. Odds of 3/1 mean a $10 bet wins $30 in profit. Most US sportsbooks default to American odds, but many allow you to switch between formats in your account settings.

The Three Core Bet Types

Most sports bets fall into one of three categories. These are the bets you will encounter most often and should understand first.

Moneyline Bets

A moneyline bet is the simplest bet in sports. You are picking which team or player will win the game. There is no point spread or margin of victory involved. If your team wins, you win the bet. If they lose, you lose.

Moneyline odds reflect the relative strength of each side. A heavy favorite might be listed at -300 (bet $300 to win $100), while the underdog might be +250 (bet $100 to win $250). The bigger the gap between the two numbers, the more lopsided the matchup is expected to be.

Moneylines are available for virtually every sport and are the most intuitive bet type for beginners.

Point Spread Bets

Point spread betting adds a handicap to level the playing field between two unevenly matched teams. The favorite must win by more than the spread to cover, while the underdog can lose by less than the spread (or win outright) and still cover.

For example, if the Kansas City Chiefs are -6.5 against the Denver Broncos, the Chiefs must win by 7 or more points for a Chiefs spread bet to pay out. The Broncos at +6.5 cover if they lose by 6 or fewer points or win the game.

Spread bets are the most popular bet type in football and basketball. The odds on each side of the spread are typically close to -110, meaning the sportsbook expects roughly equal action on both sides.

Over/Under (Totals) Bets

An over/under bet is a wager on the total combined score of both teams in a game. The sportsbook sets a number, and you bet whether the actual total will be over or under that number.

For example, if the total for an NFL game is set at 47.5, you bet Over if you think the teams will combine for 48 or more points, or Under if you think they will combine for 47 or fewer.

Totals bets let you wager on a game without needing to pick a winner. They are popular across all major sports and are a good starting point for bettors who want to focus on game flow rather than picking sides.

Comparing the Three Core Bet Types

Bet Type	What You Are Betting On	Typical Odds	Best For
Moneyline	Which team wins	Varies by matchup	Beginners, close games
Point Spread	Margin of victory	Usually -110 each side	Football, basketball
Over/Under	Combined total score	Usually -110 each side	Any sport, no side needed

Other Common Bet Types

Beyond the three core bet types, sportsbooks offer several other wager formats that you will encounter regularly.

Parlays combine two or more individual bets into a single wager. All selections must win for the parlay to pay out. Parlays offer higher potential payouts than straight bets, but the risk increases with each leg added. A two-leg parlay is reasonable. A ten-leg parlay is essentially a lottery ticket.

Prop bets are wagers on specific events within a game rather than the final outcome. Player props focus on individual performances (will a quarterback throw over 2.5 touchdowns?), while game props focus on specific game events (which team scores first?). Props are popular for major events like the Super Bowl and are increasingly available for regular-season games.

Futures bets are long-term wagers placed on outcomes that will be decided in the future, such as which team will win the Super Bowl, who will win the MVP award, or how many games a team will win during the season. Futures odds change throughout the season based on team performance and other factors.

Teasers are a modified parlay that allows you to adjust the point spread or total in your favor across multiple games. The tradeoff is a lower payout compared to a standard parlay. Teasers are most commonly used in NFL and NBA betting.

Live betting (also called in-game betting) allows you to place wagers while a game is in progress. Odds update in real time based on what is happening on the field or court. Live betting adds a dynamic element but requires quick decision-making and discipline.

How to Place Your First Bet

Placing your first sports bet is straightforward once you understand the process. Here is a step-by-step walkthrough.

Step 1: Choose a Licensed Sportsbook

Select a sportsbook that is licensed and regulated in your state. Major operators include DraftKings, FanDuel, BetMGM, and Caesars Sportsbook, among others. Compare welcome offers, but do not choose a sportsbook based solely on the signup bonus. Look for a platform with an interface you find easy to use and the sports and bet types you care about.

Step 2: Create an Account

Sign up by providing your name, email, date of birth, and the last four digits of your Social Security number. Sportsbooks verify your identity and location to comply with state regulations. You must be at least 21 years old in most states (18 in some).

Step 3: Deposit Funds

Add money to your account using a payment method accepted by the sportsbook. Common options include online banking, debit cards, PayPal, Venmo, and Apple Pay. Start with an amount you are completely comfortable losing.

Step 4: Find Your Bet

Navigate to the sport and game you want to bet on. Sportsbooks organize events by sport, league, and date. Tap or click on the odds next to the outcome you want to bet on, and it will be added to your bet slip.

Step 5: Enter Your Wager and Confirm

On the bet slip, enter the dollar amount you want to wager. The slip will show your potential payout based on the odds. Review everything carefully, then confirm the bet. Once confirmed, the bet is locked in and cannot be changed (though some sportsbooks offer a cash-out option before the event concludes).

Understanding the Vig (Juice)

The vig, also called juice or vigorish, is the sportsbook's built-in commission on every bet. It is how sportsbooks guarantee a profit over time regardless of outcomes.

The standard vig is easiest to see in point spread and totals markets, where both sides are typically priced at -110. If you bet $110 on one side and another bettor places $110 on the other side, the sportsbook collects $220 total. The winner receives $210 ($110 stake + $100 profit), and the sportsbook keeps $10. That $10 is the vig.

The vig means you need to win more than 50% of your bets at standard -110 odds just to break even. The exact breakeven win rate at -110 is approximately 52.4%. This is why sports betting is difficult to do profitably over the long term. The house edge is small on any individual bet, but it compounds over hundreds and thousands of wagers.

Different sportsbooks may offer slightly different odds on the same event, which means the vig varies. Shopping for the best odds across multiple sportsbooks is one of the simplest ways to reduce the amount you pay in vig over time.

Key Sports Betting Terms

Sports betting has its own vocabulary. Here are the most important terms to know as a beginner. For a comprehensive list, see our sports betting terms glossary.

Action — Any wager placed on a sporting event.

Bankroll — The total amount of money you have set aside for betting.

Chalk — The favorite in a game or matchup.

Cover — When a team wins by enough points to beat the spread.

Dog (Underdog) — The team or player expected to lose.

Handle — The total amount of money wagered on a particular event or at a particular sportsbook.

Juice/Vig — The commission the sportsbook takes on each bet.

Push — A bet that results in a tie against the spread or total, meaning your original wager is returned.

Sharp — A professional or highly skilled bettor.

Square — A recreational or casual bettor.

Steam — Rapid line movement caused by heavy betting action, often from sharp bettors.

Unit — A standardized bet size, typically 1-2% of your total bankroll.

Basic Bankroll Management

Bankroll management is the practice of controlling how much you bet relative to your total betting budget. It is arguably the most important skill for any sports bettor, and the one most beginners neglect.

Setting a Budget

Your bankroll should be money you can afford to lose entirely without affecting your daily life, bills, or financial obligations. Treat it as an entertainment expense, similar to what you might spend on concerts, dining out, or streaming subscriptions.

Unit Sizing

A unit is a standardized bet amount, typically 1-2% of your total bankroll. If your bankroll is $500, one unit is $5-$10. Betting in consistent units prevents you from overexposing yourself on any single wager and helps smooth out the inevitable variance in sports betting.

Conservative approach: 1% of bankroll per bet (recommended for beginners) Standard approach: 2% of bankroll per bet Aggressive approach: 3-5% of bankroll per bet (not recommended)

Why It Matters

Without bankroll management, even a skilled bettor can go broke during a losing streak. Variance is a reality of sports betting. You will have losing days, losing weeks, and potentially losing months, even if your overall approach is sound. Proper unit sizing ensures you survive those downswings and remain in the game long enough for your edge (if you have one) to play out.

Common Beginner Mistakes

New bettors consistently fall into the same traps. Being aware of these patterns helps you avoid them.

Chasing losses. After a losing bet or a losing day, the temptation to increase your next bet to win back what you lost is strong. This is one of the most destructive patterns in sports betting. Losses are a normal part of betting. Increasing your stakes after a loss only accelerates the rate at which you can lose your bankroll.

Betting with emotion. Wagering on your favorite team because you want them to win, or betting against a team because you dislike them, leads to poor decision-making. Successful betting requires objectivity. If you cannot bet against your favorite team when the numbers suggest you should, it is better to skip those games entirely.

Ignoring bankroll management. Betting random amounts without a plan is a fast way to go broke. Set a unit size and stick to it. The excitement of a big bet is not worth the risk of depleting your bankroll.

Not shopping for the best line. Different sportsbooks offer different odds on the same event. The difference between -110 and -105 on a spread bet may seem trivial, but it adds up significantly over hundreds of bets. Having accounts at two or three sportsbooks and comparing lines before placing a bet is one of the easiest edges available to any bettor.

Parlaying too aggressively. Parlays are popular because the potential payouts are exciting, but each leg you add dramatically reduces your probability of winning. Sportsbooks love parlays because they generate significantly higher margins than straight bets. If you enjoy parlays, keep them small (two or three legs) and treat them as entertainment, not as a core strategy.

Betting too many games. There is no rule that says you must bet every game on the schedule. Selective betting, only wagering when you have a genuine opinion or see value, is more profitable than betting for the sake of having action.

Misunderstanding the vig. Many beginners do not realize they need to win more than half their bets to be profitable. At standard -110 odds, you need a 52.4% win rate to break even. Understanding this reality sets proper expectations from the start.

Frequently Asked Questions

What is the easiest type of sports bet for beginners?

Moneyline bets are the simplest. You pick which team will win the game, and if they win, you win the bet. There is no point spread or margin of victory to worry about. Moneyline bets are available for every sport and require only a basic understanding of the matchup.

How much money do I need to start sports betting?

Most online sportsbooks allow bets as low as $1-$5. You do not need a large bankroll to get started. A reasonable starting point is $100-$500 that you can afford to lose completely. The important thing is that your betting bankroll is separate from money you need for bills, rent, groceries, or any other financial obligation.

Is sports betting legal in the United States?

Sports betting is legal in the majority of US states, but laws vary by state. Some states allow online and in-person betting, others only allow in-person, and a few states have not yet legalized sports betting. Always check your state's current laws and only use sportsbooks that are licensed and regulated in your state.

What does -110 mean in sports betting?

Odds of -110 mean you need to bet $110 to win $100 in profit. This is the standard price for point spread and totals bets. The extra $10 you risk beyond the $100 payout is the vig (or juice), which is the sportsbook's commission on the bet.

Can you make money sports betting?

It is possible but very difficult. The sportsbook's vig means you need to win more than 50% of your bets at standard odds just to break even. Professional sports bettors exist, but they represent a very small percentage of all bettors and typically rely on sophisticated models, extensive data analysis, and strict bankroll management. Most recreational bettors should treat sports betting as entertainment with a defined budget, not as a way to make money.

What is the difference between a moneyline and a point spread?

A moneyline bet is on which team wins the game outright. A point spread bet includes a handicap that one team must overcome. With a moneyline, the favorite simply needs to win. With a spread, the favorite must win by more than the specified number of points. Moneyline odds vary widely based on the matchup, while spread odds are typically close to -110 on each side.

How do sportsbooks make money?

Sportsbooks make money primarily through the vig (also called juice), which is a commission built into the odds of every bet. By pricing both sides of a wager so that the combined implied probabilities exceed 100%, sportsbooks create a mathematical edge that guarantees profit over a large number of bets, regardless of individual outcomes.

What is a parlay bet?

A parlay is a single bet that combines two or more individual selections. All selections must win for the parlay to pay out. The potential payout increases with each leg added, but so does the risk. A single loss in any leg of the parlay means the entire bet loses. Parlays are popular because of their high potential payouts, but they are significantly harder to win than straight bets.

What is the easiest sport to bet on for beginners?

There is no single easiest sport, but NFL football is the most popular starting point for new bettors. Games are played once a week, which gives you time to research each matchup. NBA basketball is another strong option because the high-scoring nature of the games makes totals and spreads relatively intuitive. The best approach is to start with a sport you already watch and understand. Familiarity with teams, players, and game flow gives you a natural foundation for evaluating odds and making informed bets.

Is sports betting rigged?

No. Legal, regulated sportsbooks in the United States are licensed by state gaming commissions and are subject to audits, compliance checks, and strict operational standards. Sportsbooks do not need to rig outcomes because the vig (their built-in commission on every bet) guarantees them a mathematical edge over time. The house advantage is small on any individual wager, but it is consistent and reliable across millions of bets. If you are using a licensed sportsbook in your state, the games and the betting markets are legitimate.