How do "odds" work in betting?

[0-hr]

In tonight's adventure, my character bet 500gp at "three to one" odds and one. Which of the following is true:

1) He gets back his 500gp plus another 1500gp (total profit 1500 gp)

or

2) He gets back 1500gp (total profit 1000 gp)

I did a search on the web and the best I could find was "you get back three for every one you bet". But is the one I bet part of that three, or in addition to that three?

 

[The_Dood]

The PC gets back a total of 1500gp for a profit of 1000gp.

 

[MerricB]

The PC gets back a total of 1500gp for a profit of 1000gp.

With bookkeepers (and most gambling) 3 to 1 means you win 1500 gp - and get the 500 gp bet in addition, so the bookkeeper gives you back 2000 gp.

Compare 1 to 3; where a bet of 1500 gp would win you 500 gp... giving you back 2000 gp in total.

Cheers!

 

[Olaf the Stout]

With bookkeepers (and most gambling) 3 to 1 means you win 1500 gp - and get the 500 gp bet in addition, so the bookkeeper gives you back 2000 gp.

Compare 1 to 3; where a bet of 1500 gp would win you 500 gp... giving you back 2000 gp in total.

Cheers!

I agree with Merric. 3 to 1 means that for every dollar you bet you get back 3 (plus you get your original dollar back). If you bet 500 gp you get 3 times that (1500 gp) plus your original money (500 gp) for a grand total of 2000 gp.

Olaf the Stout

 

[Meds]

I also agree with Merric. And so does Wikipedia:

"The bettor always receives his original stake back, so if the odds are 4/1 you would actually receive a total of £500 in return upon winning a £100 bet (£400 plus the original £100.)"

 

[Jeff Wilder]

You get your original bet back, plus (original bet times odds).

The easiest way to remember this is that with an even-money bet -- i.e., 1 to 1 odds, 50 percent probability, 1 in 2 chance (all different terms for expressing the same thing) -- you're going to double your money if you win.

If all you got back was your original bet times the odds, you'd be breaking even on a 50 percent proposition ... when you win. (And lemme tell you, that's a bad bet to be making.)

 

[Delta]

Yes, you should get back a total of 4 times the bet (3+1).

Another example from Wikipedia, poker "simple pot odds". A $10 bet is made at 4-to-1 odds. If the player wins they'll get back $50. http://en.wikipedia.org/wiki/Pot_odds