How Are Odds Calculated?

How Are Odds Calculated?

Odds as seen on a ToteDaddy event which is still open for betting are in real-time, and will change depending on the bets placed on each selection. Once the event has been closed for betting, the odds are finalised.

Odds are calculated based on how much has been bet on that selection, less deductions for bookie fee (between 0 to 95% of total pool) and ToteDaddy’s Admin Fees (5% of total pool). This is calculated by:

(Total event pool – 5% ToteDaddy Admin Fees – 0 to 95% User “Bookie Fee”) ÷ Total amount bet on selection = Potential winnings per $1 bet on selection

As an example of how this works:

The total pool for an event is $100. Only 3 participants have bet on the event:

- Mark has bet $20 on Selection A

- John (the bookie) has bet $50 on Selection B

- Amy has bet $30 on Selection C

- Nobody has placed any bets on Selection D.

John, as the bookie, has decided to set aside 3% of the total pool as the bookie fee. The total pool of $100 will be paid out as follows:

- $5 kept by ToteDaddy as Admin Fees

- $3 kept by John as bookie fees

- $90 split between the winners

On the event page, this will be shown as a 92% payout percentage.

The odds displayed on the event page will be:

Selection A ($20 total bet):

($100 x 92%) ÷ $20 = $4.60

Selection B ($50 total bet):

($100 x 92%) ÷ $50 = $1.84

Selection C ($30 total bet):

($100 x 92%) ÷ $30 = $3.06 (rounded down to nearest $0.01)

Selection D ($0 total bet):

($100 x 92%) ÷ $1 = $92 (this figure is theoretical assuming $1 already bet, even though there are no bets actually placed).

Selection B will be shown to be the “favourite to win” as it has the most amount bet on it.

Let’s assume that these are the positions at the time the event closes, and Selection A is the winner. Mark will therefore win $20 x $4.60 = $92.

Should Selection D be the final winner, without any bets placed on it, ToteDaddy will keep the winnings.

Continuing the example:

Let’s say that, before the event was closed, Lisa also decided to bet $50 on Selection A. This brings the total pool to $150. The odds displayed on the event page will then immediately change to reflect the new status, after Lisa has placed her bet:

Selection A ($70 total bet, between Mark and Lisa):

($150 x 92%) ÷ $70 = $1.97 (rounded down to nearest $0.01)

Selection B ($50 total bet):

($150 x 92%) ÷ $50 = $2.76

Selection C ($30 total bet):

($150 x 92%) ÷ $30 = $4.60

Selection D ($0 total bet):

($150 x 92%) ÷ $1 = $138 (this figure is theoretical assuming $1 already bet, even though there are no bets actually placed).

Selection A will now be shown as the new “favourite to win”.

If Selection A is the winner, the winnings will be split between the winners (Mark and Lisa).

Mark will win $20 x $1.97 = $39.40

Lisa will win $50 x $1.97 = $98.50

In this example, Mark’s winnings from his $20 bet have been reduced due to the additional bet placed by Lisa. It is important to remember that the displayed odds only reflect the current pool, and will change based on any new bets.