Betting odds represent the probability of an event occurring and are used to calculate potential payouts. There are several types of odds, including fractional (e.g., 5/1), decimal (e.g., 6.0), and American (e.g., +500 or -500). Understanding how to interpret these odds is crucial for making informed betting decisions. Fractional odds represent the profit relative to the stake, decimal odds represent the total payout including the stake, and American odds indicate how much you need to bet to win $100 (positive) or how much you win for betting $100 (negative).