This article explains the 3 way moneyline meaning and why settlement timing and math matter in three-outcome markets. It focuses on clear rules, step-by-step conversions from American odds to implied probability, and practical checks that reduce avoidable mistakes. The guide is aimed at sports fans and bettors who want a concise, rules-first overview, from beginners learning the terms to experienced handicappers checking settlement details. It uses plain language, worked examples, and a final checklist to make the concepts repeatable and verifiable.

A 3-way moneyline prices three separate outcomes and settles at the end of regulation, so a tie is a distinct result, not a push.

Convert each American price to implied probability to compare books and reveal the bookmaker margin.

Always confirm settlement wording before placing a 3-way bet; different rules change which selection wins.

3 way moneyline meaning: definition and quick overview

The 3 way moneyline meaning is simple: a market with three possible, mutually exclusive outcomes, typically labeled home win, draw, and away win, all settled at the end of regulation time; a bet on either team loses if the match is tied at that point and only the separate draw selection wins, which makes this market different from two-way formats Action Network explainer

In plain language, if you back the home team and the score is level when regulation ends, that stake loses unless you specifically backed the draw option; this rule is common in soccer and any market that explicitly grades results on regulation time only TheLines three-way moneyline explainer

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What the three outcomes are

The three outcomes are named clearly: home win, draw, and away win. Each outcome has its own price and is judged only at the match's regulation endpoint in a standard 3-way market. See our blog for more on market structure.

How this definition differs from a two-way moneyline

A two-way moneyline removes the draw as an outcome or folds extra time into settlement, so bets can push or be decided in overtime depending on the market rules; that difference changes strategy and payout expectations for many bettors Action Network explainer

Two-way vs three-way moneyline: the key differences

The central distinction is market structure: a two-way line offers two possible results while a three-way line offers the draw as a separate, priced outcome, which changes how you interpret prices and risk TheLines three-way moneyline explainer

Most U.S. sports and many betting products offer two-way settlement because overtime or extra periods decide a winner; in contrast, soccer markets frequently present three-way prices because draws at the end of regulation are a normal result under the sport's rules IFAB Laws of the Game

What changes in settlement and market structure

Close up smartphone showing three way moneyline meaning odds for a soccer match with calculator and notebook on a dark minimalist desk in Funded Plays colors

When the draw is an outcome, bookmakers must set three independent prices rather than two, which usually raises the combined implied probability and embeds a visible margin into the market.

Which sports commonly use each format

Soccer commonly uses three-way markets because matches can end tied in regulation; other sports that allow draws or offer regulation-only lines sometimes use 3-way pricing as a special market option TheLines three-way moneyline explainer

How 3-way markets are settled: regulation time and overtime rules

Settling a 3-way market at the end of regulation means the official result is the score when the standard match clock stops, not including extra time or shootouts unless the market explicitly says otherwise; in that case the draw selection wins if the match is level at that point Action Network explainer (also see Pinnacle's guide)

Some markets and competitions will offer specific regulation-only lines for sports that otherwise go to overtime; those products are still 3-way in structure and settle on the regulation result unless the market states different terms BetMGM guide to three-way markets

Convert three American odds into implied probabilities for each outcome

Test with live odds from a recent match

What 'settled at the end of regulation' means

In practice, check the market description for the words regulation, full time, or 90 minutes when you see a three-way price; those terms tell you whether extra periods are ignored for settlement, and ignoring extra periods is the core idea behind 3-way grading Action Network explainer

Because settlement timing directly changes whether a selection wins or loses, always confirm the explicit settlement rule on the market page before you place a bet to avoid surprises from overtime or competition-specific rules BetMGM guide to three-way markets

Common sportsbook settlement rules and where to confirm them

Bookmakers usually place settlement notes near the market header or in the rules section; look for phrases like regulated time, match time, or competition rules and read them carefully before staking money. Check DraftKings' settlement guidance for an example of operator rules here.

If a market is ambiguous, contact support or avoid the market; the cost of a single misread settlement rule can outweigh small expected edges.

When and where you see 3-way moneylines (sports and markets)

Soccer is the clearest, most frequent example because The IFAB Laws of the Game allow matches to end level after regulation, which is why three-way markets are a standard offering in that sport IFAB Laws of the Game. FanDuel's guide also explains the 90-minute rule here.

Other sports may offer regulation-only three-way lines as special products, such as regulation-time prices in hockey or select event markets that exclude extra periods; availability varies by operator and region, so do not assume universal presence BetMGM guide to three-way markets

Why soccer is the primary example

The Laws of the Game make draws a normal, rule-consistent outcome at the end of regulation, and three-way markets map directly to that possibility; that alignment is why three-way pricing is widely used across leagues and competitions.

Other sports and special markets that may use 3-way lines

When operators offer regulation-only pricing in sports that otherwise go to extra time, they are effectively creating a three-way market, so watch for explicit market tags that indicate regulation-only settlement.

How to calculate implied probability from American odds

Convert each American moneyline price to an implied probability using two simple formulas: for negative odds use -odds/(-odds+100), and for positive odds use 100/(odds+100); apply the correct formula to every outcome's price independently Investopedia implied probability guide

Step 1: Identify whether the American price is negative or positive. Step 2: Use the matching formula above. Step 3: Express the result as a percentage and repeat for the other two outcomes to compare total implied share Investopedia implied probability guide

Example outline without numeric values: first convert the favorite's price using the negative formula when needed, then convert the underdog and draw prices with the positive formula when applicable, and finally sum the three implied probabilities to see the market's overround Investopedia implied probability guide

Try converting live odds to implied probability

Try converting live odds using the two formulas above to see how implied probability changes between outcomes; this exercise makes overround and relative pricing obvious.

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Formulas for positive and negative American odds

Use -odds/(-odds+100) for negative prices and 100/(odds+100) for positive prices; these formulas map directly to how American moneyline pricing converts into percentage chance estimates for one outcome at a time Investopedia implied probability guide

Apply the formulas to each of the three outcomes separately, never to combined prices, and keep track of the decimal or percentage format you prefer for later comparison across books.

Converting each 3-way price to implied probability

After conversion, compare the implied probabilities to see where the market assigns the most chance; the sum will usually exceed 100 percent because the bookmaker margin is baked into each price Investopedia implied probability guide

Use the sums as a relative efficiency measure: lower total implied probability across books typically signals tighter pricing and, all else equal, a smaller bookmaker margin.

How payouts work: moneyline payout math for favorites, underdogs, and draws

Moneyline payout math follows the same conventions for a 3-way market as any single-outcome moneyline: a +150 price pays $150 profit on a $100 stake for a total return of $250, and a -180 price requires a $180 stake to win $100, for a total return of $280, which you can apply to any of the three outcomes independently Investopedia moneyline bet guide

Minimalist 2D vector infographic showing stepwise visual conversion from American odds to implied probability for three outcomes using donut charts and arrows in Funded Plays colors 3 way moneyline meaning

To compute a payout, pick the stake, apply the price rule for positive or negative odds, and calculate both profit and total returned capital; each outcome is paid only if that outcome occurs, so payouts do not interact across the three prices Investopedia moneyline bet guide

Basic payout rules for positive and negative odds

For positive American odds: profit = stake * (odds/100). For negative American odds: profit = stake * (100/(-odds)). Add the stake to profit to get the total payout when you win.

Worked examples for favorite, underdog, and draw selections

Example 1, payout math: suppose the home team is -150, the draw is +240, and the away team is +400. A $100 stake on the draw at +240 returns $340 total: $100 stake plus $240 profit, while a $150 stake on the favorite at -150 would return $250 total if the math is scaled accordingly Investopedia moneyline bet guide

Note the draw's payout is independent of the favorite and away prices: you win only if the draw occurs at the end of regulation, and the payout calculation uses that selection's price alone.

How sportsbooks build margins in 3-way markets

Bookmakers include a margin by setting each price so that the sum of implied probabilities for the three outcomes exceeds 100 percent, a concept called overround that tells you the built-in house share of the market Investopedia implied probability guide

Comparing the summed implied probability across several operators helps you find relatively better prices, but always confirm settlement rules first because different settlement definitions change effective pricing and value Action Network explainer

What is a 3-way moneyline and how is it settled?

A 3-way moneyline is a market with three mutually exclusive outcomes-home win, draw, away win-settled at the end of regulation time; the draw selection wins only if the match is tied at that point and you must check the market rules to see whether extra time or shootouts are included.

What the sum of implied probabilities tells you

If the three implied probabilities add to 110 percent, that extra 10 percent is the market margin; lower totals usually indicate tighter pricing, which is useful when comparing books for the same event.

How to spot an excessively large margin

Look for unusually high overrounds relative to typical ranges for the sport and competition; large margins are a sign that price shopping will likely produce better expected value opportunities.

Assessing price value: comparing implied probabilities across three outcomes

To assess value, convert all three outcomes to implied probabilities and compare them to your own estimate or model; if an outcome's implied probability is materially lower than your model estimate, it may offer positive expected value after accounting for margin Investopedia implied probability guide

For the draw specifically, value often appears in low-scoring, evenly matched fixtures or when team characteristics suggest a higher chance of a level score at regulation end; use conditional reasoning and avoid assuming the draw is intrinsically inferior.

How to compare prices and spot relative value

Compute implied probabilities, sum them to see the overround, and then compare the single-outcome implied probability to your independent estimate; use the difference and your confidence to guide stake sizing.

When a draw price can be attractive

A draw can be attractive when both teams have low scoring rates, conservative tactics, or a history of stalemates; translate those qualitative factors into a model probability and compare with the market price before committing capital.

Decision criteria: when to pick draw, home, or away in 3-way lines

Weigh objective factors: head-to-head history, recent team form, expected goals or scoring rates, injuries, and the market price versus your model; the probabilistic comparison should drive selection rather than intuition alone Action Network explainer

Include market-related checks in your routine: confirm settlement rules, convert odds to implied probability, compare that to your model, and confirm the market overround before sizing a bet Investopedia implied probability guide

Factors to weigh before choosing an outcome

Consider expected goals, defensive records, how teams perform away versus home, and situational incentives such as tournament stage or travel; these inputs help refine a model estimate for comparison to the market price.

Quick decision checklist

Check settlement wording, calculate implied probabilities, compare to your model, inspect the overround, size according to bankroll rules, and track the outcome for future calibration.

Common mistakes and traps with 3-way moneylines

Failing to check settlement timing is a frequent error: treating a 3-way market like a two-way line can turn what you thought was a push into a loss, because a tied result is not a push unless the market states otherwise Action Network explainer

Other common traps include miscalculating implied probability, ignoring bookmaker margin, and assuming payouts interact across outcomes; each mistake is avoidable with a short routine of verification and arithmetic Investopedia implied probability guide

Typical bettor errors

Overlooking market rules, failing to price-shop, and sizing stakes without accounting for variance or edge are the most costly mistakes; these are process failures rather than forecasting failures in many cases.

How to avoid them

Use a repeatable pre-bet checklist: read settlement notes, convert odds to probability, check overround across books, and size the stake to a pre-defined bankroll rule.

Practical 3-way betting examples: step-by-step calculations

Example 1, payout and implied probability: suppose prices are Home -140, Draw +260, Away +480. Step 1 convert each price to implied probability. For Home -140 use -(-140)/(-(-140)+100) which simplifies to 140/(140+100) equals 140/240 or 58.33 percent. For Draw +260 use 100/(260+100) which equals 100/360 or 27.78 percent. For Away +480 use 100/(480+100) which equals 100/580 or 17.24 percent Investopedia implied probability guide

Step 2 sum the three implied probabilities: 58.33 + 27.78 + 17.24 = 103.35 percent, which indicates an overround of 3.35 percent in this example and shows the bookmaker margin on the market Investopedia implied probability guide

Step 3 payout math example: if you stake $100 on the draw at +260 you win $260 profit and receive $360 total; if you stake $140 on the favorite at -140 you would win $100 profit and receive $240 total, demonstrating that payout calculations rely only on the selected price Investopedia moneyline bet guide

Short reminder: always confirm whether the market settles on regulation or includes extra time before applying these examples to live bets, because settlement wording changes which outcome wins Action Network explainer

Example 2, comparing books: repeat the conversion for the same event across multiple operators, sum implied probabilities on each book, and select the operator with the lowest overround for the same event and settlement rules to reduce the bookmaker margin you face.

How to use 3-way lines in a disciplined bankroll strategy

Treat each 3-way selection as an independent investment of a fraction of your bankroll based on edge and variance; do not increase stakes because a draw feels likelier after a single game, and avoid chasing losses with bigger bets. See our blog index for related posts.

Track simple metrics: implied probability versus your model estimate, stake, outcome, and realized ROI over a reasonable sample; this tracking will expose biases and improve sizing choices over time Investopedia implied probability guide

Sizing bets in multi-outcome markets

Use fixed-percentage stakes, Kelly-derived fractions, or other tested sizing rules tied to your estimated edge and variance; the three-outcome structure does not change the math of sizing, only the probability inputs.

Tracking and evaluation tips

Maintain a simple spreadsheet with columns for event, settlement rule, three prices, converted implied probabilities, your model probability, stake, and result; review periodically and adjust model parameters instead of changing sizing after single outcomes.

Regulatory and rules note: Laws of the Game and confirmation tips

The IFAB Laws of the Game explicitly allow matches to finish tied at the end of regulation, and that rule foundation explains why three-way markets are standard in soccer across competitions IFAB Laws of the Game

Always confirm sport- and competition-specific settlement wording on the market page and consult official competition regulations when in doubt, because settlement definitions can vary and rule changes are possible Action Network explainer

IFAB Laws of the Game relevance to draws

The Laws of the Game treat a draw after regulation as a lawful final score in standard matches, which makes draw pricing logically consistent with the sport's official outcome possibilities.

Where to confirm sport-specific rules

Look for settlement notes on the betting market page, the operator's rules section, or the official competition regulations when you need authoritative confirmation of grading rules.

Conclusion: quick checklist and next steps

Six-point checklist: confirm settlement rules, convert odds to implied probability, check the market overround, compare prices across operators, size bets to your bankroll rules, and track results for ongoing calibration Action Network explainer

Practice the math and verification steps on a few past matches to build routine and confidence; use the examples above to test your conversion and payout calculations and remember that no approach guarantees wins. Visit Funded Plays.

Does a 3-way moneyline include overtime or shootouts?

Not unless the market explicitly says so. Standard 3-way prices settle at the end of regulation, and extra time or shootouts only count if the market’s rules state they do.

How do I convert American odds into implied probability?

Use these formulas: for negative odds use -odds/(-odds+100); for positive odds use 100/(odds+100). Apply the correct formula to each price separately.

Why do the three implied probabilities add to more than 100%?

Bookmakers build a margin into posted odds, so the sum of the three implied probabilities usually exceeds 100 percent; this excess is the market overround.

Use the checklist and worked examples here to practice on a few past matches before applying methods to live markets. Keep stakes in line with your bankroll plan and treat each 3-way price as a separate, verifiable decision rather than a shortcut to gain. If you test these steps methodically, you will reduce simple settlement and math errors and improve your ability to compare prices across operators without assuming guaranteed outcomes.