Handicap Betting Explained: What It Is and How It Works

Handicap betting is a popular bet type. It helps to balance the odds between a short-priced selection versus a longer odds option. For example, a title-winning football team versus a relegation-threatened side. Or if a top-ranked tennis player faces a lower-ranked opponent.

So, handicap bets are popular with sports bettors on football, basketball, tennis, esports, and more.

What Is Handicap Betting?

Handicap betting aims to level the playing field when two mismatched sides compete. A handicap gives one side of the bet a “virtual advantage” if they are the underdog. They get given a +1 handicap, so they can still win in handicap betting – even if they lose the contest by one goal.

On the other side of the bet, the favourite has a “virtual disadvantage”. They must win by a certain number of goals or points. A -1 handicap means they need to win by two clear goals.

A handicap betting option makes the odds balanced. It creates added interest in these less evenly matched contests. You’ll find various forms of handicap betting, including Asian or European Handicap. Each has its own rules, offering ways to balance betting risk and potential profit.

How Does Handicap Betting Work?

Bookmakers adjust their odds to account for the handicap. So, the event outcome differs from the result used to settle bets.

Team A (-1 handicap) starts minus one goal against Team B (+1 handicap) with a virtual plus one goal advantage.

If the final result is a Team A 2-1 win, Team A’s adjusted score is 1 after removing their one goal handicap. We add one goal to Team B’s total, giving an adjusted score of 2.

So, the changed outcomes for betting purposes are:

• Team A to win bets lose.
• Bets on Team B either win or return your stake (if there’s a draw option included in a 3-way market).

For this example, the handicap changes the final outcome for betting purposes. Team A needs to win by a 2 goal margin for the -1 handicap bet to win. So, the handicap evens up the contest for betting.

Types of Handicap Betting

European Handicap is a basic three-way betting market. It includes Team A, the draw and Team B. With whole number handicap adjustments and no stake refunds. For example, Team A (-1) needs to win by a 2 goal margin for your bet to win.

Asian Handicap betting doesn’t include the draw. It assigns a plus or minus value to whole, half or quarter number handicap.

• Whole value (1.0, 2.0) return your bet stake (void) if the scores are equal after adjusting for the handicap.
• Half number (0.5, 1.5) means no draws, just a win or loss.
• Quarter number (0.25, 0.75) splits your stake over two outcomes (whole and half handicap). Your bet could win, lose, or void.

Spread Betting: is common in American sports. In NBA basketball or the NFL, each team may start with a plus or minus handicap like Team A +6.5 points versus Team B -6.5 points. There’s no draw option in this two-way market.

Handicap Betting: Pros and Cons

Examples of Handicap Betting in Action

Here’s some examples showing what a handicap is in betting.

Liverpool (-2) versus Man Utd (+2). If the match ends 1-1, bets on Liverpool lose because they didn’t win by three goals or more. Draw bets lose, as the adjusted score wasn’t level. Man Utd wagers win because of their two goal advantage.

Now, a basketball match of Lakers (-6.5) against Warriors (+6.5). The game finishes Lakers 104 – Warriors 100. Handicap adjusted scores are Lakers: 104 minus 6.5 equals 97.5. Warriors: 100 plus 6.5 gives 106.5. So, Lakers bets lose since they didn’t win by a minimum seven point margin. Warriors (+6.5) is a winner because their 6 point head start covered the actual four point deficit.

Tips for Handicap Betting

Always understand the line before placing a bet: European handicaps with whole numbers include the draw and no voids. While Asian handicaps don’t account for draws. And quarter or half numbers can produce void bets.

Don’t back the favourite blindly. In football handicap betting, compare bookmaker odds to find the best value.

Use handicap betting strategically to find value. For example, in rugby handicap betting, England might be massive favourites versus Canada. But you could find value in the underdogs team’s plus handicap.

Conclusion

I explained what handicap betting is. It means staking on a team or player with a virtual head start or deficit to overcome. Handicaps even up the odds to bring extra interest and strategy to your betting.

Handicap betting can be useful when a strong favourite matches up with an underdog. For instance, a football FA Cup third round match. When a Premier League team plays lower league opposition.