What Does Handicap Mean in Betting?

You’ll find the option for handicap betting at most betting sites, but what does handicap in betting mean? Put simply, a betting handicap allows the bookmaker to artificially level the playing field between two teams.

They do this by introducing what is known as a ‘spread’. This spread will require the favorite team to win by a certain number of points (sometimes called a goal handicap). If they win by less than this number of points, then bets on the underdog are paid out as winning bets.

Now that we know the meaning of handicap betting, it’s important to understand why we can place them.

As we mentioned, a handicap in betting levels the playing field a little. This is particularly prevalent in American Major League sports, where the perceived gap between two teams can be huge.     

This huge gap leads to moneyline odds offering little value in a game where one team is almost certain to beat the other. In this instance, a goal handicap can help experienced bettors find some value in the market.

You’ll see handicaps presented in up to four different ways. We’re going to use moneyline odds for these examples, as they’re the easiest way to define handicap betting.

Two Way Handicap Bets

This is the most prevalent way of displaying a handicap bet. There are only two possible outcomes, team A wins, or team B wins. These only apply in sports where there cannot be a draw.

For example: There’s a MLB game between the Los Angeles Dodgers and the Atlanta Braves.
The spread between the two teams is 1.5 with the Los Angeles Dodgers being the favorites. 
So, you can either bet on the Los Angeles Dodgers to win by 1.5+ (or more), or the Atlanta Braves to win (or lose by less than 1.5 points).

Three-Way Handicap Bet

Three-way handicaps are used when it is possible for there to be a draw. In games like soccer, you’ll often see three-way handicap bets.

These are a little more confusing but the basic goals handicap meaning is as follows:

Arsenal are playing Manchester City. Arsenal is the underdog and Manchester City is the favorite. You might see their three-way handicap displayed like this:

Arsenal (1)
Handicap Draw Arsenal (1)
Manchester City (-1)

The only way that Manchester City bets can win is if they win by more than 1 goal. If the teams draw, then 1 is added to Arsenal’s score, meaning bets on Arsenal pay out. 

Whole Number Handicaps

All of our examples for handicap betting explained, so far, have been whole number handicaps.  These are common in high-scoring sports, where there can be bigger goal/point differences.

Half Number Handicaps

So far in our quest to understand how does handicap betting work, we’ve only looked at whole number handicaps. However, in lower-scoring sports like soccer, you’ll often see half-number handicaps. This is to allow for smaller winning margins and more precise odds.