What is Spread Betting? Spread Betting Explained.

Against the spread

Spread betting, also known as handicap betting, is a market offered by sportsbooks which seeks to make any sporting event an even betting contest by applying a handicap to the favorite.

Point spreads may look or be named differently from sport to sport but the central premise always remains the same, that the bookmaker predicts the margin of victory of the favorite and handicaps them by that amount, theoretically making the contest even.

After the handicap has been applied, the bettor must then try to predict which side will beat the spread.

❓What Is Spread Betting
📊Spread Betting by Sport
🔍Spread or Moneyline
📊Spread Bet Strategies

How Does Spread Betting Work?

In spread betting, the sportsbook applies a handicap to the favorite, or gives the underdog a head start, which makes the contest balanced to bet on. To win your bet, the selection that you pick must remain ahead once the spread has been applied.

Bookmakers initially determine the probability of a favorite winning through a variety of factors. These are represented through a betting market known as a ‘moneyline’, a straightforward bet on who wins the contest.

Once the moneyline odds are known, a points spread line for the event is created. As a rule of thumb, the shorter the moneyline, the larger the spread will be. However, the spread can also be influenced by other factors, such as the expected total of points or goals.

The overall purpose of spread betting is to level the playing field between mismatched opponents and, therefore, the odds on each side winning will always be close to equal, unless you wager on an alternative points spread known as a ‘teaser’, which we’ll discuss in more detail later in the article.

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Difference Between Betting Odds and Lines

In short, the difference between odds and lines is that lines represent the handicap and odds show the chance of that selection winning.

A points spread will be displayed by a sportsbook similarly to this:

Team A -7 (-110) vs. Team B +7 (+110)

This contains three central pieces of information to understand.

The first is the name of the team or player, make sure you select the one that you want to bet on.

Next you have the points spread line, which is either a positive or negative number depending on whether the selection is the favorite or an underdog. The line represents the value of the applied handicap and how much that selection would need to win by for the bet to land.

Finally are the odds, which are the likelihood of the selection beating the spread and can also be used to calculate your return, though an online sportsbook will usually provide this information.

In our example the odds are displayed in the US odds format but can also be shown in decimal (European) or fractional.

The most common odds that you will encounter on an evenly balanced point spread are -110 on both sides. These imply a 52.4% chance of winning and, for a $100 bet, will give a $90.91 return.

Favorites vs. Underdog

If the fundamental purpose of a point spread bet is to even out a contest between a favorite and an underdog, it is important to know what the terms mean.

The favorite, the team or player most likely to win, will always be represented by a negative points spread line. This is displayed with a minus before it, such a -7.5. It implies that the selection has been deducted points or goals, therefore making it harder for them to win.

If you bet on the favorite to win a spread bet, their margin of victory must be greater than the value of the handicap.

The underdog is the outsider in a sporting event, who is given a theoretical headstart which they must try to keep. Their spread line will always be positive and is represented by a plus, such as +7.5.

A simple way to work out whether your spread betting selection has won is to apply the positive or negative handicap to the final score. If your chosen selection is still ahead after the handicap has been reflected in a new total, then you have won the bet. A bet on the underdog can still win even if they lose the contest, as long as it is within the range of the spread.

What is a Teaser Bet?

Teaser bets are a form of spread betting that offer the bettor alternate lines and odds. They are named as such because the bettor is said to be teasing the point spread to a more favorable line, making it easier to win.

The downside is that as the point spread becomes easier, the odds and potential payout decreases. You are effectively sacrificing profit to increase the likelihood of victory.

Sportsbooks also offer reverse teasers, which allow you to bet on a more difficult point spread but increase the odds and return. If you are confident that one selection will easily cover the spread, this option is worth considering.

These types of bets are typically only available in football and basketball betting.

Can a Spread Bet End in a Push?

If the betting line is displayed as a whole number (eg. -3 or -5) and the favorite wins by that exact amount, the scores will be tied and the bet becomes a push, meaning that the stake is refunded.

However, many sportsbooks will avoid this occurrence by offering half-point spreads (eg. -3.5 or -5.5). These lines are impossible to hit, as teams cannot score half points, so the push is removed as a possible outcome.

Spread Betting by Sport

Although betting spreads always function in the same way, they can vary in name or appearance based on the individual sport and scoring system. In this section we’ll quickly take you through how spreads work in a few of the biggest sports in the US. Different sports use spread betting in different ways, we'll help you understand betting against the spread or how to bet on the point spread.

Basketball (Point Spread)

In basketball betting the handicap market is known as a point spread. As it is a high-scoring sport, the spread can be low or high depending on the perceived supremacy of the favorite but it will typically be a half-point line to avoid ties.

In the final game of the 2023 NBA finals, the Denver Nuggets, who were already leading 3-1 in the series, were deemed -8.5 favorites on the spread.

The Nuggets won the game 94-89, a five point victory, which was enough to be victorious on the moneyline but not enough to cover a -8.5 handicap. Therefore, the Miami Heat covered the spread.

Football (Point Spread)

Football is similarly high-scoring to basketball and, therefore, can also see low or high point spreads depending on how imbalanced the two teams are. Where the two sports differ is in their scoring systems.

Depending on the play, a football team can score two, three, six, seven or eight points at a time, although three and seven are the most common. This is consistent across the NFL and college football.

An example NFL game was the 2023 Super Bowl, which took place between the Philadelphia Eagles and the Kansas City Chiefs. The Eagles were widely priced as -2 favorites prior to the game, a line which looked too low at half time when they were winning by ten points.

However, the Chiefs staged a famous second half comeback to eventually win 38-35. It was a three point margin of victory which, given that they began the game with a +2 handicap advantage, meant that they cleared the spread by five points in total.

Ice Hockey (Puck Line)

In ice hockey the spread is referred to as the puck line and is typically very low, often giving the favorite a -0.5, -1.5 or -2.5 handicap.

The fifth game of the 2023 NHL Finals saw the Vegas Golden Knights as -1.5 favorites to beat the Florida Panthers and lift the Stanley Cup.

In a show of dominance, the Golden Knights ran out 9-3 winners, tying the most goals ever scored by a team in a Finals game. Their six goal victory was more than enough to beat the -1.5 spread.

It was an example of a game in which a bettor could have placed a reverse teaser wager on a tougher line with higher odds, such as -2.5 or -3.5, and still managed to win the bet.

Baseball (Run Line)

The run line is baseball’s version of the point spread and, like ice hockey, tends to be very close owing to the relatively low scoring nature of the sport. It requires the bettor to predict who will have the most runs at the end of the game after the handicap is applied.

The final game of the 2023 World Series, between the Texas Rangers and the Arizona Diamondbacks, made the Rangers -1.5 favorites to win. A comprehensive 5-0 victory proved more than enough for them to cover the spread.

Spread Bets vs. Moneyline Bets

Spread bets and moneyline bets both seek the same outcome in a sense, to determine the winner of a sporting event. Where they differ, however, is that a spread bet seeks to make a mismatched contest even through the application of a handicap.

A moneyline bet simply asks you to predict who will win the game outright or lose it. The opponents might be very evenly matched in a moneyline market or one side can be the clear and overwhelming favorites, with accordingly short odds.

A spread bet predicts the likely point or goals difference between the two and applies that number, as a handicap, to the favorite in order to level the two competitors before the start.

The strength of your viewpoint on a game should determine which market you bet on. For example, if you believe that an outsider will win a game outright, without any help from a handicap, you would earn a greater return from betting on them in the moneyline market at their true odds rather than the point spread.

Point Spread Betting Strategies

Knowing what a spread bet is and successfully playing the market are two different things. In this section we offer some tips and strategies that should get your spread betting off to a strong start.

Understand Key Numbers. Key numbers are regarded as the most typical margins of victory in a sporting event. Understanding key numbers can help you decide whether a line represents value and even which line you should take.
Predict the Spreads Yourself. A good exercise to help you understand which side of a spread you should back is to predict what a line will be before you check the sportsbook. For example, if you make one side -8.5 favorites but the sportsbook only gives them a -4.5 handicap. If your prediction is correct they will cover the spread by four points.
Predict lines moves. There are a range of factors that can influence line moves, including public betting, sharp betting and external factors like weather or injuries. If you are able to predict these moves ahead of time, you can potentially snap up early point spread prices that will be huge value later on.
Compare different lines. Rival sportsbooks may offer different odds on the same betting line, so it pays to look around before you place your wager. There is no sense in taking odds of -120 on a line if you can get -110 elsewhere. This is a discipline which, in the long term, can significantly boost your bankroll.
Manage your bankroll properly. Reckless betting will cause you to lose your stake very quickly. Responsible bankroll management is vital to long term success. You should decide how much you can afford to lose and overall and adjust the proportion of this which you wager based on how certain you are about the bet.