Wondering why sportsbooks set handicaps?
Ever seen a team listed at -1.5 (-110) or +2 (+130) in betting markets? That’s a handicap. Sportsbooks use it to balance games when one side is much stronger. By giving the underdog a head start or the favorite a deficit, they create more competitive odds.
In this article, we’ll explain what handicap betting means, the main types you’ll see, how to read them, and when to use them to find value.
What is handicap betting?
Handicap betting gives one team a virtual head start or deficit to make uneven matchups more competitive.
Sportsbooks use handicaps to balance betting markets. Instead of everyone backing the obvious favorite at low odds, handicaps create even-priced options that keep both sides appealing. It’s a core market in sports like football, basketball, and soccer.
Types of handicap bets and how to read them
1. Standard handicap (Spread Betting)
The favorite gives a points or goals “spread,” and must win by more than that margin for the bet to succeed. The underdog covers if it wins outright or loses by fewer points than the spread.
For example, imagine an NFL game where the Chiefs are heavy favorites over the Raiders. The spread is Chiefs -7 (-110) and Raiders +7 (-110):
- A $100 bet on Chiefs -7 wins if they win by 8 or more.
- A $100 bet on Raiders +7 wins if they win outright or lose by 6 or fewer.
- If the Chiefs win by exactly 7, the bet is refunded (push).
2. Asian handicap
Popular in soccer, this two-way market eliminates the draw by using whole, half, or quarter-goal lines. Asian Handicaps like these reduce risk on draws by refunding or partially paying out, making them popular in evenly matched games.
For example, the image below shows an Asian Handicap market for Newcastle vs. Liverpool:
- Newcastle 0.0, +0.25 (1.925): In this case, your $100 bet is split:
- $50 on 0.0 (Draw No Bet): Wins if Newcastle wins. If the match ends in a draw, this half of your bet is refunded.
- $50 on +0.25: Wins if Newcastle wins, and if the match is a draw, you earn half profit on this portion.
- Liverpool 0.0, -0.5 (1.925): In this case, your $100 bet is split:
- $50 on 0.0 (Draw No Bet): Wins if Liverpool wins. If the match ends in a draw, this half of your bet is refunded.
- $50 on -0.5: Wins only if Liverpool wins. If the match is a draw or Liverpool loses, this half of your bet loses.
Interested in in-play Asian handicap bets? Check our guide on How In-Play Asian Handicap Bets are Settled.
3. Three-way handicap (Soccer)
Also called “1X2 handicap,” this market retains three outcomes (win, draw, loss) while applying a handicap.
For instance, imagine a soccer game involving Barcelona -1 vs. Sevilla, the handicap options would be:
- Barcelona -1 wins if they win by 2 or more goals.
- Draw -1 wins if Barcelona wins by exactly 1 goal.
- Sevilla +1 wins if Sevilla wins or draws.
These variations let bettors pick the market that matches their confidence and risk tolerance.
Risks and considerations when betting handicaps
- Higher lines mean greater risk: For the favorite, the handicap increases the margin they must cover. For example, -2.5 is riskier than -1.5, as the team needs to win by 3+.
- Asian handicaps can split bets: With lines like -0.75, half your stake is on -1 and half on -0.5, which can make results tricky to interpret.
- Market movement and vig: Bookmakers adjust odds as the market moves, and vig (or juice) is built into the line. Even if you win, higher vig means lower payouts.
- Draw issues in three-way handicap: The potential for a draw can complicate results, especially when betting on extreme lines.
- Bettor bias: Overvaluing favorites or underdogs can lead to bad decisions, especially when a team is priced too heavily for their true chances.
Tips to maximize handicap betting
- Line shopping: Always compare handicap lines across multiple soft sportsbooks to ensure you're getting the best value. Even slight differences in odds can affect your long-term profit.
- Follow team news: Stay updated on injuries, suspensions, or tactical changes that might impact the game, so you can act before the lines shift.
- Consider game flow: Match type and pace matter. High-scoring games may favor bigger handicaps, while tight, defensive games need smaller lines.
- Don’t ignore the underdog: Betting on underdogs with reasonable handicaps like +1.5 can be a valuable strategy, especially when they can lose by one goal or win outright.
Should you wager handicap bets?
With the right strategy, handicap betting allows you to diversify your approach, manage risk, and increase your chances of consistent returns. So, next time you see a handicap market, you’ll know exactly how to use it to your advantage. Want to learn more betting rules and strategies? Check the The Advantage blog.
FAQs
What is the difference between a handicap and a spread?
A handicap is often the same as a spread, where one team gets a head start or a deficit. The terms are interchangeable, but "handicap" is often used in European and Asian markets, while "spread" is common in the U.S.
What does +1.5 handicap mean?
A +1.5 handicap gives the underdog a 1.5-point head start. For example, if the underdog loses by 1 point, your bet on +1.5 wins.
What does +2 handicap mean in betting?
A +2 handicap means the underdog has a 2-point head start. If they lose by 1 or 2 points, your bet on +2 wins, but if they lose by 3 or more, the bet loses.
How do you win a handicap bet?
To win a handicap bet, the team you bet on must cover the adjusted line. For example, a team with a -3 handicap must win by more than 3 points for your bet to win.
What is an 80% handicap?
An 80% handicap typically refers to an Asian handicap where the bet is split between two lines. This means part of your stake is on +0.5 and part on +1, offering a partial win or refund in case of a draw.