How Does Sports Betting Work? The Full Guide

If you’re new to sports betting, don’t worry, it’s easier to understand than it seems. Before placing your first bet, it helps to know the essentials: what sports betting involves, how sportsbooks operate, and how to get started safely. Let’s break down the basics so you can feel confident jumping in.

Sports betting is an enjoyable pastime for many sports fans. You can place all kinds of wagers on a variety of different sports, for the chance at winning some money. Having cash on the line can increase the level of excitement of a sporting event and enhance your overall viewing experience.

A sportsbook is a betting company that allows you to place wagers on sports. You can access a sportsbook through their website, and some operators have mobile apps that you can download. Choosing an operator that is licenced and legal is essential. This will ensure that your money and personal information is secure, and you will receive your payments within a reasonable time. It also ensures that the sportsbook will play by the rules and help you solve any issues that may arise. 

Yes, sports betting is legal in Canada, but the laws and regulations vary by province. Single game sports betting is legal throughout the country, but each province has its own set of rules and its own regulatory body for gambling. The legal gambling age is 18 in Quebec, Manitoba, and Alberta, but 19 throughout the rest of the country.

Regulatory bodies can award sports betting licenses to betting companies, making them completely legal and regulated by the province. Each province has one provincial sportsbook, but the only province that has granted licenses to multiple sportsbooks is Ontario, with over 30 operators. You can still wager with these sportsbooks or with other offshore brands if you are located in a province other than Ontario. The only requirement for wagering with offshore brands is that they have a gambling licence from a legitimate governing body somewhere in the world.

How did Sports Betting Become Legal in Canada?

[1] The passing of Bill-C-218 in 2021 legalized single game sports betting in Canada, completely opening the sports betting market up throughout the country.

Previously, placing parlay wagers through government ran services such as Proline was the only legal form of in person sports gambling. The only legal online sportsbook was Sports Interaction, since they operate out of the native land Kahnawake, meaning they are subject to different rules than the Federal Government.

Sports betting though offshore operators that are not provincially licenced is something that has been going on for a long time in Canada. These companies operate in the grey market, meaning they are not completely legal, but this is something that is very low on the priority list for Canadian law enforcement. The legalization of single game sports betting has essentially removed this off the radar of law enforcement entirely. There have been no arrests for gambling with offshore betting sites in Canada.

Odds are one of the most important things when it comes to understanding sports betting. The likelihood of each bet being successful will vary, so oddsmakers set a different number for each bet that determines your potential payout. The less likely a wager is to win, the greater your payout will be.

There are three types of odds displayed on sports betting sites, and most sportsbooks will allow you to select which one you prefer. Here is a breakdown of each type of odds.

American Odds

If you have ever wondered, “what does the + and - mean in sports betting,” well this has to do with American betting odds. The – sign indicates the favourite (the team most likely to win) and the + sign indicates the underdog (the team least likely to win). Negative numbers indicate the amount you need to wager to make $100. Positive numbers indicate how much you can make by wagering $100.

For example, if you make a –130 wager you need to need to bet $130 if you want to make $100. If you make a +130 wager, you will make $130 if you bet $100.

Decimal Odds

Sometimes referred to as European odds, decimal odds are commonly used in Canada, Australia, and Europe. Displaying odds as decimals makes understanding what your total payout and winnings will be simple. All you need to do is multiply the amount of money you are wagering by the decimal odds to determine your total payout. Subtracting the amount that you wagered from your total payout will give you your total winnings.

For example, placing a $10 wager at odds of 2.00 would give you a $20 payout and your total winnings would be $10.

Fractional Odds

This type of odds is commonly used the United Kingdom, Ireland, and other parts of Europe. It displays odds as a probability, where the first number of the fraction represents your potential profits and the second number represents the amount of money you choose to wager.

For example, 3/1 odds would mean a winning bet of $1 would generate a $3 profit and your total payout would be $4. If you wagered $10 at 3/1 odds, you are multiplying the bottom number of the fraction by 10, so need to do the same to the top. Multiplying 3 by 10 gives you your profit at $30.

There are many different types of sports picks available for you to in the betting world. Here is a breakdown of some of the most popular bets you will come across.

Moneyline

The most standard sports bet you can make is a moneyline wager. You are simply betting on the team that you believe will win the match.

NHL Example: Toronto Maple Leafs (-120) vs. Montreal Canadians (+120)

Point Spread

The point spread is a variation of the moneyline, with stipulations put on the score of the match. This is done to even the playing field between the favourite and the underdog. 

NFL Example: Buffalo Bills (-6.5) vs. Pittsburgh Steelers (+6.5)

If you bet on the Bills, they need to win by at least seven points. If you bet on the Steelers, they can lose by 6 or less points or win the game by any score.

Totals (Over/Under)

The most common totals wager is a combined scoring total between both teams. Totals wagers are also used in prop betting, with over/under lines set for player statistics or for team scoring in a specific period of the game. Futures bets will have over/under lines as well for team win totals in as season.

NBA Example: Toronto Raptors vs. Boston Celtics – Over (222.5) / Under (222.5 points)

In this example, the Raptors and Celtics must combine to score 223 point or more if you bet on the over. If you bet on the under, both teams must combine to score 222 points or less.

Parlays

This is when multiple single wagers are combined into one bet slip. Just betting on the Leafs moneyline would be a single wager for example, but if you combine that with the Raptors over (222.5), your wager becomes a parlay. Parlaying wagers together gives you better odds and increased profits if you win. The downside is each wager needs to win for you to receive any payout at all.

Same Game Parlays

Same game parlays are multiple events parlayed together from the same match. For example, you could take the Toronto Maple Leafs moneyline and combine that with Auston Matthews total points over. Not all sportsbooks allow you to do this, so this is something we recommend checking for before you sign up.

Game Props

Prop bets are essentially any wager that is not a standard moneyline, point spread, or totals bet. There are a wide variety of game props available to you such as the no run first inning wager in baseball, both teams to score in the first half of a soccer match, or a point spread for the second half of a basketball game.

Player Props

Most player props involve over/under wagers on statistics. This includes total strikeouts for a pitcher, total points for a basketball player, or total passing yards for an NFL quarterback. Another example would be betting on a fighter in the UFC to win by KO, TKO, or decision.

Futures

Futures are wagers that will take a longer period of time than just a single game to be determined. Common examples of this are predicting which player will win a tournament or predicting what teams will make the playoffs.

Live (In-Play) Betting

This is a wager placed after an event has already begun. Odds are updated for available wagers based on events that have taken place in the match. For example, one team might surprisingly get off to a hot start and shift the odds in their favour. This can be a great time to by low on the favourite at a reduced cost.

Looking to place a sports bet but not sure where to start? Follow this step-by-step process to get in on the action today!

• Choose From One of Our Top Sportsbooks

Visit our betting sites page for a breakdown of the top 10 operators in Canada. Choose the sportsbook that best suits you and click on the visit site button to begin your betting journey.

• Sign up and Make a Deposit

Once you have visited the website of your preferred sportsbook, click on the sign-up button to create an account. Enter in the required personal information (email, password, age, location, etc.) and opt into the sportsbook signup bonus if the option is available to you. Make sure to read the terms and conditions of the bonus beforehand so you fully understand the rules, and if opting in for the bonus is something you wish to do.

Once you have created an account you need to obtain a balance in order to place wagers. Click on the deposit button, select your preferred sportsbook payment method, enter in the required banking information, choose the amount of money you wish to deposit, and finalize your payment. Most banking methods should deposit your money instantly upon request.

• Browse Odds and Select a Bet

Now that you have an account balance, you can go ahead and place your first bet. Browse through the website/apps sports section and select the sport/match you wish to wager on. Find the specific market you are looking for (moneyline, player props, futures, etc.), select it, then enter the amount you wish to wager. A bet slip will be created, once you select a wager, so you will need to select more markets if you wish to turn your slip into a parlay.

• Confirm and Track Your Bet

Once you are satisfied with your bet slip, confirm the wager. When your wager has be placed, the amount you chose to wager will be subtracted from your account balance. Some betting sites offer live streaming, but you can also keep track of your bet by locating the event in the live betting section. Once the result of your wager has been decided, check your betting history to confirm the result. Your winnings will be added to your account balance immediately.

How to Bet and Win at Sports Betting?

If you want to be a winning sports bettor, you need to play the long game and understand that you aren’t going to profit every night. Sports have a large amount of randomness to them, so even experts are going to lose a good amount of the time.

Come up with a system that works for you and stick to it. Gamble responsibly with money you can afford to lose and don’t chase your losses. You can check out our sports picks and best bets to understand how our expert picks are selected. Here are some of the main things our experts abide by.

• Research

Researching the event that you are thinking of betting on is one of the most important things that our experts recommended. The more information you have, the better your decision making will be. Look at trends and important statistics for the sport you are betting on. How are key players performing lately? Are any key players injured? How does this team play at home vs on the road? How has this team performed against their opponent in the past? These are all questions that you can research to help you choose which markets will be more profitable each day.

• Value Betting

It’s important not to just select the bets that you think will win the most, but the ones that will give you the greatest profit in the long run. Betting odds are more important than the matchup, so if you believe that you are getting better odds than the matchup indicates, that bet should make you money in the long run regardless of the result.

• Manage Your Bankroll

Gambling responsibly and only spending money that you are comfortable losing is the most important thing to remember when it comes to sports betting. Sports betting is a hobby, not a long-term source of reliable income. If you do things right, you can draw a profit but there are going to be up and down swings along the way. Create a budget for yourself, an amount you are comfortable with losing which will determine how much you can place on each bet. In general, you should wager 1-2% of your total budget on each wager. If you have a $1000 bankroll, this means you should be placing $10-$20 wagers, maybe going on the higher side for wagers you are more confident in.

• Avoid Chasing Losses

Chasing losses is one of the worst habits that sports bettors develop. If you lose a bet, the temptation to quickly place another that can win you your money back instantly is difficult to avoid. If you want to draw a profit, you need to be discipline. Gamble responsibly by researching your picks and staying within your budget.

Becoming a winning sports bettor takes time and experience. If you are a beginner, here are some tips that you can implement right away to help speed up the process.

• Start with Small Bets

As a beginner, there is going to be some trial and error before you get the hang of things. Start out with small bets. Track your picks and develop a system that works for you. Once you are more confident in your selections you can up the ante, but always stay within your budget no matter what.

• Stick to Familiar Sports

Betting on sports that you know inside and out is much easier. Trying to branch out and learn new about new players and statistics can be overwhelming. Stick to what you know and master that first before you start branching out.

• Avoid Impulsive Betting

Profiting in the sports betting world is difficult, and impulsive betting will only make things harder and set you back in the long run. Stick to your process, stay within your budget, and don’t chase your losses.

• Take Advantage of Promos and Bonuses

Promos and bonuses can be a great way to get a head start on things and build up your bankroll. As we have mentioned, drawing a profit is difficult so you need to grab any small advantage you can. Taking advantage of free bets or deposit bonuses could be the difference between being positive or negative. Make sure you always read the terms and conditions for these offers and fully understand the steps you need to complete before opting in. Some bonuses are worth taking advantage of, and some are just not worth the hassle.

Profiting in the sports betting world requires skill, strategy, and discipline. The system is not designed for you to win, and betting lines are chosen by odds makers so that the sportsbook will always win the long run. Betting companies make large profits on new, inexperienced players that bet impulsively. The odds are stacked against you, and you aren’t smarter than the betting market, so do your research, don’t chase your losses, and take advantage of promos to get ahead when you can.

How do sports betting companies make money?

Sports betting companies ensure they make money by stacking the odds in their favour. On top of the true odds that are set by oddsmakers on each event, they add a “vig” short for vigorish on top. This is essentially a fee that the sportsbook charges you on each bet, for allowing you to use their service. The fee on each wager is usually 5-10%.

For example, if you see a –120 bet, the true odds will be slightly lower than that number. This ensures that sportsbooks will always make a profit in the long run, regardless of the outcome of the bet. Other ways that betting companies make money are by offering promotions. This increases player retention on their website and bring in more money to them in the long run.

Sports betting lines are constantly changing. They change before the game based on new information that arises, and they change during the game based on performances and scoring changes. Here are some the main factors that cause lines to change.

• Public Betting

A disproportionate amount of money placed on one side of a wager will cause a change in betting lines. Sportsbooks want the money to be around 50/50 on each side of a wager since they are collecting a vig. An even distribution of money ensures that they make a profit, so they don’t have to worry about the outcome of the game. If there is a larger amount of money placed on one side, the odds will shift to entice more action on the opposition.

• Sharp Action

Expert sports bettors that consistently win are known as Sharps. Sportsbooks will track bets placed by these players and shift odds away from the side they are betting to discourage other bettors from taking that side.

• Injuries

Injuries to key players can significantly decrease a team's chance of winning. Make sure to stay up to date with recent news and not get fooled by betting odds that look too good to be true.

• Weather

Weather can have a significant impact on performance in many sports. In baseball for example, warm weather and the wind blowing out often leads to more offence. This is something to keep track of if you are taking over/under bets.

• Market Perception

The public perception of how a game will go can be driven by narratives created by the media or overreactions to recent performances. A common strategy that sharp players use is fading the public, betting against a team that casual bettors are overconfident in. This overaction causes sportsbooks to shift the odds which creates value on the opposing side.

If you are a casual gambler in Canada, your winnings are not taxable. Sports betting, casino, or lottery wins are all considered windfalls - unexpected one-time gains and not a consistent reliable source of income.

If you are considered a professional gambler by the Canadian Revenue Agency (CRA), then you will be required to report your yearly winnings which are subject to both Federal and Provincial income tax.

The CRA determines if you qualify as a professional gambler based on numerous factors. Factors include the frequency that you gamble, if you have a clear system put in place, if your wins are skill based not just luck, and if your winnings are a primary source of income.

How Much are Professional Gamblers Taxed in Canada 

If you are a professional gambler and your winning are your primary source of income, you will subject to income tax laws in Canada. Canadians are required to pay both Federal and Provincial income taxes. Federal rates apply universally to all Canadian citizens and Provincial rates will vary based on your primary residence and yearly income. The Government of Canada website has a breakdown of both Federal and Provincial tax rates in Canada as of 2025.

Gambling addiction is a serious disease that you need to seek professional help on. There are numerous ways to identify if you have a gambling addiction. Symptoms include an inability to stop betting whether you are winning or losing, prioritizing gambling over other responsibilities, or relying on a big win to overcome for previous loses.

We have multiple tips for preventing gambling-related harms. Setting a budget and sticking to it is a great place to start. Set aside an amount of money that you are comfortable losing and don’t exceed that. If you don’t trust yourself, most sports betting sites will allow you to set daily betting and deposit limits.

Sports gambling isn’t for everyone and can become dangerous if you cannot control your impulses. Unless you are professional with a well-established track record and a winning system put in place, sports betting should be looked at as an enjoyable pastime, not a reliable source of income. If things aren’t going your way and it feels more like a second job than a hobby, don’t be afraid to take a break.

If you think you have developed a gambling addiction, there are multiple sources available for you to seek help. 1-800-GAMBLER is a 24/7 hotline that you can contact, operated by the National Council on Problem Gambling National Council on Problem Gambling. Other sources include Gamblers Anonymous and the Responsible Gaming Council. 

ATS – Against the spread, often referenced when stating how a team has performed in the past against the point spread. 

Bankroll – A set amount of money that you have set aside just for sports betting.

Cash Out – When you choose to end a bet early, accepting either a smaller profit or loss depending on the current likelihood of your wager.

Chalk – A term for the favourite in a wager.

Cover – When a team wins against the point spread, common stated that they “covered.”

Flat – A standard –110 line on both side of a wager.

Hedge – Wagering a smaller amount on the opposing side of an existing wager to guarantee a profit.

Sharp – A professional sports bettor.

Vig – The amount of money a sportsbook charges you per wager and keeps as profit. The vig (or “juice”) is collected by shifting the odds slightly in favour of the house.

Unit – The amount of money you typically wager on a bet.

[1] https://www.parl.ca/legisinfo/en/bill/43-2/c-218 15 August 2021. Retrieved 1 July 2025.

[2] https://responsiblegambling.org/