Handicap Betting Explained: How Handicaps Work in Sports

Handicap betting levels the playing field by giving one team a virtual advantage or disadvantage.

By

Eric Pauly

Feb 6, 2026

0 min read

What Is Handicap Betting?

Handicap betting adjusts the starting position of teams or players to create a more balanced betting market. Instead of betting on which team wins outright, you're betting on who performs better relative to a predetermined advantage or disadvantage. A team given a +1.5 goal handicap starts the bet as if they're up 1.5 goals. A team at -1.5 starts down 1.5 goals. The actual game result is then adjusted by this handicap to determine who "wins" the bet.

This concept appears across sports under different names. In American sports, it's called the point spread. In soccer and other international sports, it's typically called handicap betting. The Asian handicap system adds additional complexity with quarter-line betting and split stakes. After betting European soccer with handicap markets for years, I've found they offer consistently better value than 1X2 moneyline betting because they remove the draw and compress the odds into a two-way market. This guide covers how handicap betting works, the different formats you'll encounter, and when each makes sense.

article Summary

Handicap betting gives one side a virtual lead (positive handicap) and the other side a virtual deficit (negative handicap) to level the playing field. European handicaps allow three outcomes including draws; Asian handicaps eliminate draws with half and quarter lines. Handicap markets often have lower vig than straight moneyline betting, making them popular with value-focused bettors.

Types of Handicap Betting

European Handicap (3-Way)

European handicaps offer three outcomes: Team A wins with the handicap, Team B wins with the handicap, or a draw with the handicap applied. If Team A has a -1 European handicap, they need to win by 2+ goals to "win" the handicap bet. If they win by exactly 1 goal, the result after applying the handicap is a draw. If they draw or lose, Team B covers. This three-way structure is similar to standard 1X2 betting but with adjusted starting positions.

Asian Handicap (2-Way)

Asian handicaps eliminate the draw by using half-goal and quarter-goal lines. If a team is -0.5, they must win outright for the handicap bet to cash. There's no margin that creates a draw because you can't win by half a goal. Quarter lines like -0.75 or +1.25 split your stake across two adjacent handicaps, creating scenarios where half your bet wins and half pushes (or loses). This is the most popular handicap format globally and is covered in detail in our Asian handicap guide.

American Point Spreads

In American sports betting, handicaps are called point spreads. A -6.5 spread in football is functionally identical to a -6.5 Asian handicap. The team must win by 7+ points to cover. The terminology differs, but the concept is the same: adjusting the starting position to create a more balanced market. American spreads use half-points to eliminate ties, similar to Asian handicap half-lines.

Why Handicap Betting Offers Value

More Balanced Markets

When a strong favorite plays a weak opponent, the moneyline odds are heavily skewed. You might need to risk $500 to win $100 on the favorite. Handicap betting adjusts for this disparity, creating odds closer to even money on both sides. This balanced market means you're not paying massive premiums to bet favorites or receiving pennies to take extreme underdogs. The market efficiency improves when both sides have realistic winning scenarios.

Lower Vig Than Moneylines

Because handicap markets attract more balanced betting, sportsbooks can charge lower margins. I've consistently found that the overround on Asian handicap markets is 2-4% lower than on 1X2 moneyline markets for the same games. Over hundreds of bets, this reduced vig translates directly into higher expected returns. If you're betting soccer seriously, handicaps should be your default market.

Alternative Lines for Value Hunting

Sportsbooks offer multiple handicap lines for the same game. You might see -0.5, -1, -1.5, and -2 handicaps available simultaneously. Each has different odds that reflect the probability of that margin occurring. Sometimes the -1.5 offers better value than the -1 based on how sportsbooks price the alternatives. Odds comparison tools help you find the best value across different handicap levels and different books.

Handicap Betting Strategies

Back the Draw in European Handicaps

One underexplored angle in European handicap betting is backing the handicap draw. If a team is -1 and you believe they'll win by exactly one goal, the handicap draw often offers odds of +300 or higher. While this is harder to hit than a spread or outright winner, the payoff can be worth it in matchups where the favorite's expected margin is narrow. I've found value specifically in home favorites at -1 where game flow suggests a tight win.

Level Handicap (0 or Draw No Bet)

The 0 handicap (also called Draw No Bet) eliminates the draw by pushing your stake back if the game ties. You win if your team wins, lose if they lose, and get your money back if it draws. This is useful when you like a slight underdog but want protection against the draw. The odds are lower than a straight moneyline because you're removing one losing outcome, but the reduced risk can make it a smart play.

Line Shopping Across Handicap Markets

Different sportsbooks offer different handicap lines and prices. One book might have a team at -1 at -120 while another has them at -0.75 at -110. The optimal bet depends on your assessment of the most likely margin. OddsJam and Pick The Odds let you compare handicap lines across multiple books so you can find the best number for your read on the game.

Sport-Specific Handicap Considerations

Soccer: Asian Handicaps Dominate

Soccer's low scoring makes handicap betting particularly relevant. A 1-0 or 2-1 scoreline is common, so each goal on the handicap matters significantly. Asian handicaps are the standard in global soccer betting due to their two-way structure and lower vig. Quarter lines let you take precise positions that reflect narrow expected margins. If you're betting soccer, developing comfort with Asian handicap notation is essential.

Basketball: Point Spreads and High Totals

Basketball handicaps (spreads) work similarly to football but with larger margins due to higher scoring. A -7.5 spread in basketball is routine. Because scores are higher and more distributed, there are no "key numbers" like in football. The half-point eliminates ties, making every spread a simple win-or-lose proposition. Handicap betting in basketball focuses more on line movement and situational factors than on landing on specific margins.

Tennis and Individual Sports

Handicap betting in tennis typically involves game or set handicaps. A player at -3.5 games needs to win by 4+ games across the match. Set handicaps like -1.5 sets require a 2-0 victory. These markets can offer value when the moneyline on a heavy favorite is too expensive. Individual sport handicaps require understanding not just who will win but by how much, adding a layer of analysis.

Final Thoughts

Handicap betting transforms lopsided matchups into balanced markets with reasonable odds on both sides. Whether you're betting point spreads in American football, Asian handicaps in soccer, or game handicaps in tennis, the underlying concept is the same: adjusting the starting position to reflect expected performance gaps. This creates more opportunities for finding value than straight moneyline betting, especially in games with clear favorites.

If you're primarily betting moneylines on favorites, consider shifting to handicaps. The reduced vig alone improves your long-term expected value. Add in the ability to shop lines across different handicap levels and books, and handicap betting becomes one of the more flexible tools in a serious bettor's arsenal. For a deep dive into soccer-specific handicap betting, read our complete Asian handicap guide. For general betting strategy, check out the best betting tools that help you compare lines across markets.

Handicap Betting FAQ

Here are some frequently asked questions about handicap betting.

Here are some frequently asked questions about handicap betting.

What is handicap betting?

What is handicap betting?

What is the difference between European and Asian handicaps?

What is the difference between European and Asian handicaps?

Is handicap betting the same as point spread betting?

Is handicap betting the same as point spread betting?

Eric Pauly author picture

Eric Pauly

Co-Founder & COO

Eric Pauly is the co-founder and Chief Operating Officer of BetSmart - The Sports Betting Tool Authority. After working as a sports journalist and a semi-pro bettor for half a decade, Eric leverages his knowledge of betting and technology to review different betting tools and platforms.

NFL

NBA

CFB

MLB

TOOL REVIEWS

BETTING PLATFORM REVIEWS

Eric Pauly author picture

Eric Pauly

Co-Founder & COO

Eric Pauly is the co-founder and Chief Operating Officer of BetSmart - The Sports Betting Tool Authority. After working as a sports journalist and a semi-pro bettor for half a decade, Eric leverages his knowledge of betting and technology to review different betting tools and platforms.

NFL

NBA

CFB

MLB

TOOL REVIEWS

BETTING PLATFORM REVIEWS

Additional Resources

Explore our curated selection of guides and tools to help promote responsible gambling.

BetSmart article hero image for Prop Finder Tools

Best Prop Finder Tools for 2026

Discover how prop finder tools streamline your research and help you identify value in player prop markets.

BetSmart article hero image for AI Sports Betting Picks

AI Sports Betting Picks Guide

Understand how AI generates sports betting picks, the promises and limitations of AI models, and how to evaluate AI-driven betting services.

BetSmart article hero image for Asian Handicap Betting Explained: How It Works

Asian Handicap Betting Explained: How It Works

Asian handicap betting removes the draw option and uses quarter lines to create more precise soccer betting markets.

BetSmart article hero image for Draw No Bet Explained: How It Works in Soccer

Draw No Bet Explained: Strategy Guide for Smart Bettors

Draw no bet removes the draw outcome from soccer markets, giving you a refund if the match ends level.

using phone for email

Join Other Smart Bettors

Don't Gamble; Bet Smarter.

Betting strategies, new tools, and discounts. 3 minutes to read, delivered every Friday.

No spam. Unsubscribe anytime.

using phone for email

Join Other Smart Bettors

Don't Gamble; Bet Smarter.

Betting strategies, new tools, and discounts. 3 minutes to read, delivered every Friday.

No spam. Unsubscribe anytime.

Expert reviews & comparisons of 40+ sports betting tools that help you find your edge & bet smarter.

21+. Please play responsibly. For support with a gambling addiction, call 1-800-GAMBLER.

© 2026 BetSmart. All rights reserved

Expert reviews & comparisons of 40+ sports betting tools that help you find your edge & bet smarter.

21+. Please play responsibly. For support with a gambling addiction, call 1-800-GAMBLER.

© 2026 BetSmart. All rights reserved

Expert reviews & comparisons of 40+ sports betting tools that help you find your edge & bet smarter.

21+. Please play responsibly. For support with a gambling addiction, call 1-800-GAMBLER.

© 2026 BetSmart. All rights reserved