What do "odds" mean? Like 5-to-1 favorite? Or 20-1 longshot?

Question

Please help me understand what these basics mean, and how it affects the amount a person wins (or loses).

Answer 1

Don't forget that you get your stake back too.

Answer 2

If someone is a 5-1 favorite then its saying that the team is 5 times more likely to win. Therefore if you bet $100 on a 5-1 favorite then you will only win $20 profit whereas if you bet on the team not expected to win in this scenario than you will get $400 profit. Same thing with the 20-1 longshot. The "20" is being said to have a 20 times more chance of winning than the "1"

Answer 3

Easiest way I can describe is the ratio of 5:1 means that for every dollar you bet, if you win, you will be paid 5 dollars to every 1 dollar you bet.

Example, if you bet $10 on a 5:1 horse to win 1st place, you will win $50.