money line calculation help

[thesoxman101]

Hi! I'm just starting out and learning how to calculate some basic probabilities. I am trying to convert the money lines into percentages.

For example, the money line for bulls vs 76ers game tonight is:

bulls -170
76ers +150

bulls: -170/-270 = 62.96%
76ers: 100/250 = 40%

How come the two percentages don't equal 100%, or am miscalculating?

Thanks.

[WILLIE]

The extra (in this case 2.96%) is called the Hold or House Edge. That's what the Sportsbook holds for them allowing you to take either side of the contest.

[thesoxman101]

ah, okay. so are those still the true probabilities of each team winning? so should I act as if the probability the 76'ers win is 40 percent, and take the bet if I think the probability is over 40?

[subs]

u just need the next step to approximate the true probabilities:

bulls -170
76ers +150

bulls: -170/-270 = 62.96%
76ers: 100/250 = 40%

62.96/(62.96+40)=0.6115

40/(62.96+40)=0.3885

GL