Handicap Betting: What it is and How it Works
One of the most popular betting options with online sports betting sites is point spreads, which are sometimes called handicap betting. These bets let gamblers wager on the final margin of victory in a game or competition. The bookmakers apply an artificial handicap to the favorite and underdog teams, allowing betting on both sides. You don’t have to correctly predict who wins the game or even bet on the favored team for your bet to be classified as a win!
Being one of the primary sports bets along with moneylines (betting the winner) and over/under (betting the final combined score), bettors can find these wagers on just about any betting selection the sportsbooks offer—points spread odds are readily available, and the bets can be placed within minutes. A large portion of the betting public is particularly fond of these bets because there are only two possible outcomes that make these bets easy to win.
So, how do point spreads and handicap betting work? That is what we’ll highlight in your handicap betting guide, where you’ll learn how bookmakers form these bets, how you can find value, and what some of the most important strategies are for mastering this form of online sports betting!
- What Is Handicap Betting?
- Types of Handicap Bets
- How Handicap Betting Works
- Strategies for Handicap Betting
- Risks and Challenges
- Tools and Resources
The Basics of Handicap Betting
In handicap betting, you’re placing wagers on the margin of victory, not the winner of the game. The idea of handicapping in sports betting is to encourage people to bet on the underdog by applying an artificial handicap to the favorite, where bets can only win if the favorite team or competitor can beat the points handicap. Betting on the underdog will result in a win if the dog team wins outright over the favorite or if they lose by less than the points handicap.
The favorite to win is always signified by a negative sign (-), while the underdog is denoted by a positive sign (+).
Let’s say you have a game where the Chiefs and the 49ers face off. The Chiefs are the favorite to win with odds of -4.5, and the 49ers are the underdog with odds of +4.5. You can only win with the Chiefs if they win by 5 or more points, while a bet on the 49ers can win if the 49ers win outright over the Chiefs or lose by 4 or fewer points. This provides a scenario where bettors can win by betting the dog. And the dog doesn’t even have to win for the bettor to make some money!
Bookmakers and bettors alike have a lot to benefit from the points spread bet:
- Bookmakers can experience even action on both sides because bettors are highly incentivized to bet on either side, especially if you’re dealing with two teams that are evenly matched. This helps the book profit regardless of the game’s final outcome.
- Bettors can bet either side and stand a good chance of winning their bet because you’re betting on the margin of victory, not the victor. Bettors don’t have to know who wins the game or bet on their favorite team. These bets let you wager on the dog and still have the potential to win money.
- Sharp bettors like handicap betting because line movement from the bookmakers trying to balance the action can lead to significant discounts on odds, leading to profit if they can find an edge.
Because points spread and handicap betting is so popular with the betting public and sharp bettors alike, these bets are where you can find some great odds value—the bookmakers go to great lengths to balance the lines when they see a lot of action on one side, which leads to misvaluing, which in turn leads to getting odds at an excellent price reduction.
Different Types of Handicap Betting
There are several ways that bookmakers can handicap the two teams involved in a point-spread bet. You might not find all of these bets with the online sportsbook you frequent, but when you see them, they can lead to some exciting bet setups and final results. Let’s discuss European and Asian handicapping as well as point spread betting so you can become familiar with the various ways handicapping is done with online sports betting.
Asian Handicap
These points spread bets are set up with half numbers to avoid a draw. In Asian handicapping, you’ll see handicaps like 7.5 or -7.5, which means that the favorite has to win by 8 points or more, and the underdog has to lose by 7 points or less. There’s no event in which the final margin of victory will fall directly on the bookmakers’ prediction, so a push (or tie) is impossible when you’re using Asian handicapping.
With Asian handicapping, you’ll not only find the half-lines that we discussed above, but there are also the quarter lines, which are a little more complicated to understand, but they allow bettors the opportunity to get their money back in the event of a draw. For a better understanding of how the quarter lines work, we’ve included the table below for your convenience:
| Handicap | Team Result | Bet Result | Handicap | Team Result | Bet Result |
|---|---|---|---|---|---|
| 0 | Win | Win | 0 | Win | Win |
| 0 | Draw | Stake refund | 0 | Draw | Stake refund |
| 0 | Lose | Lose | 0 | Lose | Lose |
-0.25 | Win | Win | +0.25 | Win | Win |
-0.25 | Draw | Half Loss | +0.25 | Draw | Half Loss |
-0.25 | Lose | Lose | +0.25 | Lose | Lose |
-0.50 | Win | Win | +0.50 | Win | Win |
-0.50 | Draw | Lose | +0.50 | Draw | Win |
-0.50 | Lose | Lose | +0.50 | Lose | Lose |
-0.75 | Win by 2+ | Win | +0.75 | Win | Win |
-0.75 | Win by 1 | Half Win | +0.75 | Draw | Win |
-0.75 | Draw | Lose | +0.75 | Lose by 1 | Half Lose |
-0.75 | Lose | Lose | +0.75 | Lose by 2+ | Lose |
-1.00 | Win by 2+ | Win | +1.00 | Win | Win |
-1.00 | Win by 1 | Stake refund | +1.00 | Draw | Win |
-1.00 | Draw | Lose | +1.00 | Lose by 1 | Stake refund |
-1.00 | Lose | Lose | +1.00 | Lose by 2+ | Lose |
-1.25 | Win by 2+ | Win | +1.25 | Win | Win |
-1.25 | Win by 1 | Half Lose | +1.25 | Draw | Win |
-1.25 | Draw | Lose | +1.25 | Lose by 1 | Half Win |
-1.25 | Lose | Lose | +1.25 | Lose by 2+ | Lose |
-1.50 | Win by 2+ | Win | +1.50 | Win | Win |
-1.50 | Win by 1 | Lose | +1.50 | Draw | Win |
-1.50 | Draw | Lose | +1.50 | Lose by 1 | Win |
-1.50 | Lose | Lose | +1.50 | Lose by 2+ | Lose |
-1.75 | Win by 3+ | Win | +1.75 | Win | Win |
-1.75 | Win by 2 | Half Win | +1.75 | Draw | Win |
-1.75 | Win by 1 | Lose | +1.75 | Lose by 1 | Win |
-1.75 | Draw | Lose | +1.75 | Lose by 2 | Half Lose |
-1.75 | Lose | Lose | +1.75 | Lose by 3+ | Lose |
-2.00 | Win by 3+ | Win | +2.00 | Win | Win |
-2.00 | Win by 2 | Stake refund | +2.00 | Draw | Win |
-2.00 | Win by 1 | Lose | +2.00 | Lose by 1 | Win |
-2.00 | Draw | Lose | +2.00 | Lose by 2 | Stake refund |
-2.00 | Lose | Lose | +2.00 | Lose by 3+ | Lose |
European Handicap
These point-spread bets are set up with whole numbers, so pushes are typical in European handicapping. However, these bets allow gamblers to wager on the game ending in a push. In other words, bettors can try to predict the exact margin of victory—these bets can result in massive payouts if the bettors’ predictions are correct!
Asian vs. European Handicaps– Asian handicaps use half or quarter numbers, while European handicaps use whole numbers
– Asian handicaps have a lower house edge
– European handicaps are more challenging to get right but result in better payouts
– European handicaps let you bet on the exact margin of victory (a push)
Point Spread
In American sports betting, US bettors are partial to the point spread, which operates much like Asian handicapping, but the bookmakers use a single number for both teams or competitors.
How Are Point Spreads Set?
Point spreads are set using advanced computer algorithms, simulations, and statistical models. Computers do the work of forming power rankings. At the same time, human bookmakers take care of external factors such as where the game is played, player suspensions or injuries, weather, or teams traveling, which could affect their performance.
Bookmakers must also anticipate how the betting public will be on each game. When a particular team gets the lion’s share of the public money, oddsmakers will up the spread to encourage bettors to place wagers on the team that doesn’t get as much love. It’s important, too, for the bookmakers to keep an eye on other books and their competitors to see what kind of spreads and odds are being offered. To be competitive, sportsbooks will attempt to provide similar yet different spreads to keep their predictions in line with those of competitors. US books look to foreign books, who drop their odds and line earlier, as a rough guide for what they should present to their customers.
How Are Point Spreads Adjusted?
Point spreads move mainly due to the betting public and sharp bettors. After the books release the lines, there are several days until the game, event, or competition occurs. The point spreads (and any other bet) come with lower betting limits, which help the sportsbook limit their exposure in the event of heavy betting action on one side and allow time for the sharp bettors to get involved.
Once the book sees where the sharps place their money, it will give them immediate clues about where the line should be adjusted to even the betting action. Remember, the books are interested in making a profit and will move the lines or change the odds so there aren’t too many bets on one side.
Understanding the Mechanics of Handicap Betting
Handicap betting becomes easier to understand the more you learn about it. Once you know how to read the odds, understand how and when the lines move, and know the best opportunities to maximize your potential return, the mechanics of handicap betting begin making a lot more sense.
Setting the Handicap
Not too long ago, oddsmaking was done by a team of professionals out in Las Vegas who would compare notes and insights to set up handicaps for retail and online sportsbooks. However, with the advent of current-day technology, the point spreads are set up using advanced statistical models and computer algorithms, coupled with human oddsmakers’ insights concerning external factors that could impact the final outcome.
Some of these external factors include the following:
- Player trades
- Suspensions or injuries
- The game venue
- Travel time for teams
- Coaching changes
- Weather
So, while bookmakers primarily rely on computers and advanced simulations or algorithms to determine the handicaps for teams or players, human talent and insights are still a part of the process. The computers can’t always account for every possible change, so it’s up to the human oddsmakers to bring the nuances and fine distinctions with each matchup and introduce them into the numbers.
Calculating Payouts and Interpreting Results
Odds and payouts in handicap betting work precisely the way they would for other common sports bets. Let’s say there’s a game between the Washington Wizards and the Cleveland Cavaliers. The Cavs are valued at -115 with a spread of -2.5, and the Wizards are valued at +180 with a spread of +2.5. The Cavaliers are favored to win, while the Wizards are the underdog.
This means betting on the Cavs only results in a win if the Cavs beat the Wizards by 3 or more points. You would bet $115 on the Cavs to win $100 for a total payout of $215 (you get your original stake back as part of the payout). A bet on the Wizards would be considered a win if Washington wins outright or if they lose by 2 points or less. Betting on the Wizards, you would stake $100, but you would earn $180 for a total of $280 once you get back your original stake.
Effective Handicap Betting Strategies
Check out these valuable strategies for successful point spread and handicap betting. Once you begin employing some of these effective tactics, you can place point-spread bets well-informed by sound research, which will help you end up on the winning side of the curve more often.
Research and Analysis
Many strategies for handicap betting involve knowing the teams and players you’re betting on, so research is paramount to your success in choosing the proper handicap bets and winding up on the winning side of the curve as much as possible.
Teams up north are known for playing better in inclement conditions like snow or heavy rain, while teams from the Sun Belt do better in the heat. You even have teams that perform better at higher altitudes. Knowing which conditions specific teams and players perform best in helps inform points spread bet, even for a game or match that’ll be close. Always check where the game will be played, where the participating teams are from, and what the weather will be like on the event day.
If the team you’re betting on has all their core players intact and all performing to the best of their ability, they have a great shot at overcoming their opponent. However, some occurrences in a season could significantly change the game’s end result and affect the margin of victory. Players can get traded to other teams, while some could incur injuries that prevent them from playing in the next game. There are also player suspensions that could impact the season’s trajectory in a significant way. Before betting on spread, check out the current line ups to see which players are available.
Something significant to consider is how well each team has performed over the last several games. This can be an indicator as to how the current game you’re betting on will go. Teams that build momentum and deliver a strong performance tend to keep that power going. With some teams, you can tell when they’re in a slump and losing momentum. And with others, there’s always a chance they can begin to turn things around positively. Check and analyze past performances to inform your betting decisions for point spreads.
Some teams have great coaches who lead them to victory, make the right calls on playing particular players in certain games, and mesh well with the team in general. Some coaches are horrible fits for the teams they’re overseeing. Spotting changes with a coach could affect the number of points scored or how well the team performs against their rival. A different coach could revitalize a struggling team or help a strong team maintain its momentum throughout a season.
Market Timing
Another huge factor to consider with point spread betting is the line movement when bookmakers adjust for lopsided betting action. While it’s good to do solid research on point spread matchups, place your bets early to lock in value and choose the selections that are most likely to occur, you might consider seeing where the betting line moves, if at all. When the book moves the line to balance bets, the point spreads won’t reflect the true likelihood of each outcome, so there are opportunities here to get a better price on odds that you feel confident will result in a winning bet.
The more you can take advantage of market timing with point spread, the more profit will flow into your bankroll. The right timing to spring on handicap bets will differ from one bettor to another. If you feel making your selections right away as soon as the odds drop is best, go for it, but we recommend tracking line movement to see if there are any places where you could potentially gain more profit.
Even after the line has moved, it could move again due to public money and based on the sharp bettors’ selections. External factors could also be at play (weather, change of venue, injuries, etc.) influencing the movement. Taking advantage of these changes when they occur is crucial so you’re not stuck with a bet that’s no good!
Bankroll Management
Succeeding in point spread betting begins with sound management of your bankroll. Aside from having some fun with it, the entire point of sports betting is to make steady profits over time without alerting your sportsbook to the fact that you’re getting good closing line value. To profit, you must have a solid grasp of your gambling funds.
Embrace these good practices to minimize potential losses and slowly build your bankroll using innovative, logical steps:
- Allot an amount of your money for online gambling only. Keep it separate from your regular money, and don’t go over. It’s money that you can afford to lose.
- Set up a betting unit. Choose a small amount, like $5, or use a percentage of your bankroll, like 1-2%. Once you’ve established the betting unit, keep that bet size the same across all bets.
- Set up time limits just like you would with your bankroll money. Take breaks from your gambling sessions when needed.
- Don’t chase losses. Take a break if you start losing money. Don’t think you can up your subsequent few bets to recoup losses.
- Don’t bet on sports when you’re angry or upset. You begin getting into emotional betting, and you’re likely to make bad decisions, leading to unnecessary money loss.
- Look for bets that allow you to make the most money for the lowest price. The more you can expand your profit, the more your bankroll will grow.
- Avoid betting on your favorite or betting on winning. The most important thing is finding value.
- Focus on the sports markets and leagues you’re most familiar with, which increases your chances of making good bets that are likely to win.
We’ve already mentioned it several times throughout our handicap betting guide. Still, good sports betting is about finding value, getting the best deal you can on your odds, and having enough insight and research to pick bets that result in a win. It’s about making a profit over time.
Keeping your stake lower than your total bankroll balance is essential to maximize your overall profit. There’s a temptation in betting to up the amount of your wager on bets you’re sure of winning. Don’t fall into this trap. Keep the betting unit consistent across all bets because a lower, conservative stake will keep your losses to a minimum if your predictions are wrong.
Specialization
Sticking with the sports markets, teams, leagues, and individual players you know the most about is the best way to go about online sports betting. You’ll succeed with betting in major markets like the NFL, NHL, MLB, NBA, and others because there’s a lot of data and statistical analysis available for the bookmakers to work with. You get more accurate odds and lines with the significant markets than obscure leagues and divisions.
Navigating the Risks in Handicap Betting
Handicap betting, for the most part, has two possible outcomes: either the favorite or the underdog winning. Your primary risk is the money you lose if your bet is incorrect. However, there are several other risks with handicap betting that are worth noting before you start adding selections to your online bet slip.
Market Movement
When the bookmakers first put out the odds on handicap bets, they tend to keep the betting limits low, giving them time to see where the money is going from the public and the sharp bettors. This allows them to move the line if needed in the event of a lot of betting action on a single side of the bet. The sharps’ betting activity further influences line movement.
It’s generally best to act early on a bet, especially if the line could move against you. Sometimes, it’s preferable to see where the betting public is going because the books will start offering good deals for the odds on the other side of the bet if things are getting too lopsided. You might find more valuable odds on bets against public money.
How Do Odds Changes Impact Handicap Bets?
When the books begin shifting the line by adjusting the spread numbers, they are doing so to balance the bet, and the true advantage or disadvantage for the favorite and the dog are skewed and don’t truly represent how much each team will win or lose. It’s these discrepancies in the numbers where eagle-eyed bettors can thrive because some of these line shifts will add value to one side of the bet and still have a likelihood of coming through as a winning bet.
On the flip side, the other side of the bet might not offer as much value. If you bet too early before checking the lines over a few days, you could find yourself on the wrong side of the bet where you’d either lose or not make as much money as you had initially anticipated. A significant way to mitigate this kind of risk is to shop around for value instead of placing a bet too quickly. If you find yourself in a bet with an undesirable outcome, you can always place a bet on the other side to even things out or make a small profit.
Bookmaker Limitations
Another risk with handicap betting is being restricted by the sportsbook you’re using. This could happen if you’re making aggressive moves that give you away as a bettor gaming the book to make a good profit and have consistent closing line value.
To avoid having your betting limits lowered, having your account closed, being denied your payouts, or being denied access to bonus bets and other promotions, there are several things you can do to fly under the radar and come across the book like you’re an average, recreational bettor who isn’t a threat:
- Bet with round numbers. It might be tempting to capture all the profit you can, but using non-round numbers can tip the book off because you’re an aggressive bettor who needs to be watched.
- Place your bets at the exact times a lot of recreational bettors use the books, such as on the weekends or during the evening on weeknights.
- Don’t make too many deposits or withdrawals.
- Avoid drawing attention to yourself by making a small first deposit.
- Don’t always place the maximum bet. Again, make some more subdued bets so it’s not completely obvious that you’re an aggressive, sharp bettor.
- Place a few bets where you lose using money that you can afford to part with. Select a few parlays or props that you know won’t come through and bet a minimal amount of money on them to post some losses.
The best way to manage your relationships with your sportsbook and the bookmakers who watch for suspicious activity is to work strategically where you’re placing good bets that deliver small, incremental wins over time. However, you want to do things that make you look like an anonymous public bettor:
- Post some losses from time to time.
- Bet around the times the betting public is typically out.
- Avoid betting on non-round numbers.
Human Error
What are some of the most common mistakes a bettor can make in point spread betting? We’ll fill you in by highlighting the biggest blunders to avoid and the best practices for accuracy and efficiency in placing handicap bets.
- You’re betting only to win. This means that you’re not looking for value. It can result in many losses or winning bets where little profit can be gained.
- You don’t stay within your gambling budget and don’t bother to set up a betting unit to avoid over-exposure.
- You want to bet on the favorite when you’re supposed to bet on the margin of victory.
- You choose bets with no strategy in mind and work off hunched to inform your betting selections.
Essential Tools for Successful Handicap Betting
Suppose you need some additional help in selecting and making the best handicap bets due to a busy schedule or the fact that you’re a newbie bettor who needs a bit of guidance. In that case, you can find a bunch of dynamic, helpful sports betting tools that make the process all the easier.
Statistical Analysis Tools
A major part of betting on point spreads successfully is knowing the teams and players you’re betting on, including analyzing information on past performance, historical data, and season trends. It might seem like a big undertaking, and it can be if you’re going about it the old-fashioned way. But you can save yourself the hassle and time commitment by using websites that specialize in sports betting statistics and analysis, which include places such as:
You might know a lot about the teams or competitors that you’re interested in betting on, but some bettors can’t always draw up the statistics, data, and analysis at a moment’s notice from memory. Online statistical analysis tools can draw up the nuggets of information you need to make your best bet selection!
Bet Tracking
We’d recommend tracking all handicap bets you make at your favorite sportsbook—doing so can help you understand your strengths and weaknesses. The idea of monitoring the bets is to find areas where you can improve your strategy and make the best bet decisions possible.
Feel free to track as much information as you want on your bets. If you’re not sure what to record, we suggest starting with the following:
- Date of the bets
- The matchup
- The type of bet (moneyline, total, point spread, prop, parlay, etc.)
- Odds
- Any spreads or totals
- How much you staked
- The final result of the bet
- How much you profited or lost
There are a few ways to track your bets as a sports gambler, the simplest of which is recording them with paper and pencil. If you’re only signed up with one sportsbook, you can typically view all your prior bets on a separate page, a service that nearly all sports betting sites offer their customers.
If you’re more serious about betting and want to improve your strategy, we recommend logging your bets in an Excel or Google Sheets spreadsheet. Another common tactic is downloading a bet-tracking app to your phone or device. These apps help you manage your bankroll and perform a detailed analysis of your bets to offer helpful suggestions!
Handicap Betting FAQs
What do our customers and readers want to know about handicap betting? We took the most common question we’ve gotten over time and did our best to provide some quick answers in the section below. You can understand the most important concepts about point spreads and other handicaps without reviewing the guide!
What Is Handicap Betting?
Handicap betting is the same thing as a point spread—this is where the odds are evened out between the favorite and the underdog. The favorite team or competitor is assigned a handicap, and the favorite has to win their game by more than the points handicap for a bet on the favorite to be considered a win. The underdog bet wins if the underdog team wins outright over the favorite or loses by less than the points handicap.
What Makes Handicap Betting So Popular?
Handicap betting is popular with bettors because they get more favorable odds on their favorite team or competitor. The bookmakers like point spread because it’s an excellent way to offer a bet that generates relatively even action on both sides of the wager.
Which Sports Offer Handicap Betting?
You can enjoy point spread betting on any sports markets offered at online sports betting sites. Because handicap betting involves only two outcomes (most of the time), it’s considered a straight bet and is frequently offered at sportsbooks along with the moneyline and over/under bets. It’s extremely rare to find a book that doesn’t do handicap betting, and if you find one, perchance, it’s probably not worth your time.
What’s the Primary Difference Between Asian and European Handicapping?
Asian handicapping involves using half numbers to avoid a draw, while European handicapping uses the whole number. If the point spread makes the Steelers a -3.5 favorite to win over the Browns at +3.5, the Steelers have to win by 4 points or more, or the Browns would have to lose by 3 points or less. If the odds were written in a whole number like 3, there’s a chance that one team or another would win or lose by 3 points on the nose, and the bet is considered a draw. This means the sportsbook would have to return the bet to the bettors. Using Asian handicapping helps bookmakers avoid this situation entirely.
Are Handicap Bets Worth It?
There’s a reason point spreads are so popular—you can make great money on these bets! You get many recreational bettors who like betting point spreads, and this heavy influence from the betting public allows sharp bettors to thrive. They can find places in the numbers to get odds at a reasonable price when the bookmakers have to balance bets due to uneven betting action.
What Do the Minus and Plus Signs Mean?
The minus sign in the point spread odds signifies the favorite team or competitor to win the game. The plus sign indicates the underdog. It seems a little backward, but this is how it is, so be careful adding selections to your bet slip. If you’re viewing the odds and you have the Steelers at -3.5 and the Browns at 3.5, the Steelers are the favorite to win, but they have to win by four or more points for the bet to win.
Can I Bet on a Draw in Handicap Betting?
This is technically possible, but it’s only available for games or events with European handicapping where whole-number odds lead to draws. These bets offer three: the favorite to win, the underdog to win, or a draw. It’s the only way you can win the bet because the other two options result in you having your bet returned.
What Is a 3-Way Handicap Bet?
These are bets where you can bet on the game ending in a draw. It’s only available on bets that use European handicapping. What you’re doing in 3-way handicapping is correctly predicting the exact margin of victory. If you can get it right, the payouts on these bets can be much higher than getting the margin right for the favorite or dog.
How Do You Place a Handicap Bet Online?
Being one of the most common types of betting with online sportsbooks, you can find point spread odds for just about any game, team, competitor, or player—they’re usually posted along with moneylines and over/under for every betting selection. Choose the odds you want to bet on and add them to your slip. Then watch the game and see if your bet posts as a win or loss. It’s easy!
What Are Whole-Number and Half-Number Handicaps?
Whole-number handicaps are a feature of European handicapping where bettors have three betting choices: the favorite winning, the underdog winning, or the push. Because the final margin of victory could land right on the bookmakers’ numbers, bettors can bet on the push (tie), which results in significant payouts. Half-number handicaps are associated with Asian handicapping, and using decimals makes it so a push is impossible.
Start Your Handicap Betting Journey Today
Handicap betting is a great way to get started as a new bettor or make steady profits as someone more experienced with online sports betting. A combination of research and finding good value is the name of the game when it comes to point-spread betting.
Remember to:
- Establish a gambling budget and a betting unit and apply both consistently to your strategy.
- Pay attention to line movement when bookmakers are trying to balance out the action.
- Know the teams or competitors you’re betting on.
- Use online tools like odds comparison sites, statistical analysis sites, and bet tracking apps to find the best point spread pursuits.