Betting against the spread, or spread betting, involves placing a wager on the final conclusion of an event. However, this particular type of wager refers to several outcomes, not just a win or loss. It is used most often with sports games such as football. All football games have a betting line that points to one of the teams as the favorite to win and the other as the underdog. If you bet against the spread, you use the points advertised to place a wager on one of the teams.
How Does Betting Against the Spread Work?
A Connecticut math teacher named Charles McNeil created the point spread. He was a Chicago bookie back in the ‘40s. The spread makes betting for either team appear favorable. It puts all parties on a level playing field. Football teams that are deemed the favored ones to win are marked by a (-). The underdog teams are marked by a (+). The favorite team must win by more than the margin of points given by bookmakers or the underdog has to lose by less than the margin, or win the game. For example, the New Orleans Saints are considered the underdog in an upcoming football game. They will be marked with a positive number like (+8). The Atlanta Falcons are favored to win and marked by a negative number like (-8). If you bet on the Saints, they must win by more than 8 points for you to win the wager. If you bet on the Falcons, they can either win outright or lose by less than 8 points. As with all betting, there is the drawback of risking more than you stand to win.
Are the Margins Always Whole Numbers?
Sometimes, the spread points dictated by bookmakers have a .5 instead of a whole number. For example, the Indianapolis Colts are considered the favorite in a game and marked as (-3.5). In order for the Colts to cover the spread, they must win by 4 or more points. In the same example, the Colts play the New York Giants who are considered as the underdog and marked as (+3.5). The Giants must lose by three or less, or win the game to cover the spread.
When Is the Best Time to Bet Against the Spread?
Betting against the spread works best if the point spread is low. It is also a good tactic if you think the team that you are betting on can dominate the other one. If you feel like a team will score massively, betting against the spread will garner a more significant payoff for you. Payoffs are determined by moneyline odds. They are attached to the point spread. A negative number such as (-110) determines how much you must bet to win $100. A positive number such as (+110) determines how much you will win on a $100 bet.
What Is a Push?
Spread betting is popular because most bettors believe that the difference between the scores of two football teams will be greater than or less than what the bookies advertise. However, there are times when the favorite team wins by the exact amount that the spread is set for. That is called a push. In the case of a push, all bets are returned to the bettors regardless of the team they chose. When a .5 spread is involved, a push is impossible because the scores will never result in a .5.
How Is Betting Regulated?
Under United States Federal Law, betting is legal. But there are specific interstate and online betting restrictions. Every state has the ability to regulate betting laws in their borders. If you count state-run lotteries, then the majority of the 50 states have some type of gambling. Las Vegas is the mecca of gambling in the United States, particularly betting. Casino-style gambling is not as popular in other parts of the country. Ironically, spread betting became popular in the United Kingdom in the 1980s. In the UK, the Financial Conduct Authority rather than the Gambling Commission regulates it.