Betting can often seem overwhelming with all its terminology and concepts, and one term you might come across is "spread." While it’s commonly mentioned, it’s not always fully understood.
Whether you're just curious or thinking about trying it out, understanding what a spread is can help you make more informed decisions. In this blog post, we’ll explain what a spread means in a straightforward way.
Let’s take a closer look at spreads in a simple and easy-to-understand way.
What Is a Spread Bet?
A spread bet is used to level the playing field between two competing teams, commonly in sports like football and basketball. It involves giving the favourite team a handicap, meaning they need to win by a specific number of points for the bet to be successful.
For example, if a football team has a spread of -3 points, they must win by more than 3 points for the bet to pay out. If they win by exactly 3 points, it results in a "push," and the original stake is typically refunded.
The underdog team, on the other hand, benefits from the spread, with points added to their final score. If they lose by fewer points than the spread or win outright, they cover the spread.
How Does a Spread Bet Work?
A spread bet works by focusing on the margin of victory, not just the winner. The favourite team is given a negative spread (e.g., -2.5), meaning they must win by more than 2.5 points for the bet to succeed. If they win by 2 points or fewer, the bet does not win.
The underdog team, with a positive spread (e.g., +2.5), can lose by up to two points and still win the bet. However, if they lose by three or more points, the bet is unsuccessful.
Sometimes, spreads are whole numbers, and if the final score exactly matches the spread, it results in a "push," with the original stake refunded.
Different sports use spreads in various ways. For example, spreads are common in American football due to its high-scoring nature, while in UK football, they are less frequent but still available with some bookmakers.
As with all betting, it’s important to understand how spreads work and make informed decisions while practising responsible gambling.
What Does + And - Mean In Sport Spread Betting?
In sports spread betting, the "+" and "−" symbols are key to understanding how the bet works.
The "+" sign is associated with the underdog, the team that is less likely to win. This number represents how much they can lose by, or the margin they need to win by, for the bet to succeed. For example, a spread of +3 means the underdog can lose by up to 3 points or win, and the bet will still be a winner.
On the other hand, the "−" sign is linked to the favourite, the team that is more likely to win. This number shows the margin by which the favourite must win for the bet to succeed. For example, a spread of -3 means the favourite must win by more than 3 points for the bet to pay out.
Example Of Football Spread Betting
Let’s take a look at an example of football spread betting to help clarify how it works.
Imagine a match between Team A and Team B. In this case, Team A is the favourite and has been assigned a spread of -2.5. For a bet on Team A to win, they must win by more than 2.5 goals. This means they need to win by at least 3 goals for the bet to be successful. If they win by two goals or fewer, the bet will not succeed.
On the other side, Team B is the underdog, with a spread of +2.5. A bet on Team B will win if they either lose by two goals or fewer or if they win the match outright.
If the final score difference exactly matches the spread, it's known as a "push," and the original stake is usually refunded to the bettor.
This example demonstrates how spread betting adds an extra dynamic to traditional betting on a football match. As always, it’s important to place bets responsibly and within your limits.
Do You Get Taxed On Spread Betting?
One of the key points for individuals considering spread betting is that it is currently exempt from Capital Gains Tax (CGT). This means any profits made from spread betting are not subject to CGT, and you don’t need to report your gains for this tax.
As for Income Tax, spread betting is generally viewed as a form of gambling rather than a traditional income source. As a result, profits from spread betting are not subject to Income Tax either.
However, tax regulations can be complex and may change over time. If you're unsure about your specific situation, it’s a good idea to consult a tax professional to ensure you're fully informed and in compliance with the current laws.
Above all, it’s important to maintain a focus on responsible gambling practices when engaging in any form of betting.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.