What are Favorites & Underdogs in Sports Betting?

In the world of sports betting, understanding the distinction between favorites and underdogs is a crucial first step. These terms aren’t just labels; they shape how odds are set, how bets are placed, and how payouts are calculated. In this guide, we’ll break down what favorites and underdogs are, how to identify them, how their odds work, and how bettors can use this knowledge to make informed wagers.

🥇 What is a Favorite?

The favorite is the team or athlete expected to win a game or match. Oddsmakers use stats, past performance, injuries, and other data to determine the most likely winner.

Moneyline Favorites: In moneyline betting, the favorite is indicated with a minus sign (e.g., -150). This means you need to bet $150 to win $100.

Spread Favorites: In spread betting, the favorite must win by more than the assigned point spread for your bet to cash (e.g., -6.5).

Why Bet the Favorite?

• Higher probability of winning
• Lower risk, but also lower reward

Risks of Betting the Favorite:

• Lower payout
• May not cover the spread, even if they win

🐶 What is an Underdog?

The underdog is the team or player not expected to win. However, underdogs offer more value due to higher payouts.

Moneyline Underdogs: Identified with a plus sign (e.g., +200). A $100 bet would win $200 if they pull off the upset.

Spread Underdogs: The underdog can lose the game but still "cover the spread" if they lose by fewer points than projected or win outright.

Why Bet the Underdog?

• Bigger payouts
• More opportunities to find value

Risks of Betting the Underdog:

• Lower probability of winning
• Harder to predict upsets

🧠 How Oddsmakers Set Favorites & Underdogs

Oddsmakers rely on a mix of data and public sentiment to set odds:

• Team and player performance stats
• Recent game trends
• Injuries and lineup changes
• Home vs. away dynamics
• Weather (in outdoor sports)
• Public betting patterns

Understanding these influences can help bettors anticipate line movement and spot value in early odds.

💡 Key Tips for Betting Favorites & Underdogs

• Do Your Research: Don’t rely solely on labels. Study stats, trends, and matchups.
• Line Shopping: Compare odds across sportsbooks to find the best value.
• Look for Live Betting Opportunities: In-game momentum shifts can create value for either side.
• Avoid Blind Loyalty: Just because a team is your favorite doesn’t mean they’re the best bet.

📊 Common Betting Scenarios

In common betting scenarios, the favorite typically has moneyline odds of -170 and a spread of -6.5, meaning they must win by more than 6.5 points for a spread bet to hit. A straight win is required for bets on the favorite, but the payout is generally lower due to the higher probability of them winning.

On the other hand, the underdog often has moneyline odds of +150 and a spread of +6.5, allowing them to either win outright or lose by fewer than 6.5 points for a spread bet to pay out. While a straight win isn’t always necessary, the potential payout is higher, reflecting the greater risk of betting on the underdog.

🏀 Sports Betting Example

Let's say there's a basketball game between Team A and Team B. The oddsmakers have set the odds as follows:

• Team A (Favorite): -150
• Team B (Underdog): +200

If you bet $150 on Team A and they win, you would get a payout of $100 (plus your original $150 back). On the other hand, if you bet $100 on Team B and they win, you would get a payout of $200 (plus your original $100 back).

Keep in mind that odds can vary depending on the sportsbook and the betting market, so it's essential to understand how odds work before placing any bets.

🔗 Related Guides

• Odds in Sports Betting
• Spread Bets
• Moneyline Bets
• Over/Under Totals Bets
• Parlay Bets
• Same Game Parlays