What is Fixed Odds Betting?

Definition: Fixed odds betting is a model where the price is agreed when the bet is placed. The payout is calculated from those odds, even if the market price changes later.

How it works:

The sportsbook offers a price, e.g. 3.00 on a home win.
The player accepts it and the bet is recorded at 3.00.
If the price later drops to 2.40, the bet still settles at 3.00.

Fixed odds vs pool betting: in pari-mutuel (pool) betting, all stakes go into a pool and the payout is known only after the event. Fixed odds give the player a known return at the moment of placement.

Why it matters for operators: each accepted bet creates a liability at a set price, so fixed odds sportsbooks depend on accurate pricing, margin control and risk management.

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Related Terms

Implied Probability

Implied probability is the chance of an outcome expressed by the odds. It converts a price into a percentage.

Odds Formats (American, Decimal, Fractional)

Odds formats are different ways of writing the same price. A sportsbook front-end can display decimal, fractional or American odds depending on the market and player settings.

Wager (Stake)

A wager is a bet placed on an outcome. The stake is the amount of money committed to that bet. In everyday use the two words are often interchangeable.

iGaming Operator

An iGaming Operator is the company that runs an online casino or sportsbook brand, holds the licence for it and manages the relationship with players.

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