Sorry for that last post...I overwrote on some lines...so here it is again.
Sorry for that last post...I overwrote on some lines...so here it is again.

This is not meant to offend anyone, but I think a quick class in odds-making is in order. First, Si'dh Morel, Dragonrider of Chaos, you have a good idea, but it doesn't work that way. Grandmaster Laergon was in error in his explanation on how a 3:2 bet pays out. The easiest way to determine how odds work is simply to multiply your bet by the first number, then divide by the second number. That is the return you will receive on your bet.
It is important to realize in which order the odds are going before you multiply and divide. In this case, Gijan's odds are 2:3 and Treant's odds are 3:2.
If you bet 1 gold on Gijan, multiply by 2, then divide by 3. Your return is 0.7 gold (rounded).
If you bet 1 gold on Treant, multiply by 3, then divide by 2. Your return is 1.5 gold.
These are both in addition to the 1 gold which you bet, which you get to keep. So, betting 1 gold on Gijan, if you give 1 gold piece to the person taking the bet (bookie), and Gijan wins, the bookie gives you back 1.7 gold (minus commisions). If you bet 1 gold on Treant, give the 1 gold piece to a bookie, and Treant wins (which he will...please don't kill me again, Gijan) the bookie gives you back 2.5 gold.
The easiest way to remember this is, don't count the amount of your bet, just the amount of the payoff. Normally when you bet, you don't pay anything until after the event is over. If you lose, then you must pay the amount of your bet.
That way, multiply the amount you wish to bet by the first number, and divide by the second number. This is how much you will win
I realize this is somewhat confusing, but that's the way odds betting works. If it is even odds, or 1:1, the obviously you double your money. 2:1 odds, you triple your money. One more explanation as to why this is so may make it easier to understand. If Gijan is getting 2:3 odds, which he is in this case, the oddsmakers think Gijan will win 3 times for every 2 times he loses. Therefore, chances are he will win if there is only one fight, or he is "favored" to win (if you believe the oddsmakers).
Thus, it is a "safe" bet to wager on Gijan. As we all know, gambling is all about risks, so if the oddsmakers feel that Gijan is likely to win, your bets on Gijan wil not return as much as they would on a "darkhorse".
Your potential gain has to be less than your potential winnings so that if 100 people bet, 50 on Gijan and 50 on Treant, the "house" or oddsmakers still make money. If each of those 100 people bet 3 gold, and Gijan wins, the house receives 3 gold from the 50 who bet on Treant, or 150 gold.
The house must then pay the 50 people who bet on Gijan 100 gold, 2 gold each. Thus the house nets 50 gold.
If Treant wins, the house receives 3 gold from the 50 who bet on Gijan, or 150 gold total. Then the house must pay 4.5 gold to each of the 50 who bet on Treant, or 225 gold total. That is why the house wants to change the odds to make sure more people bet on Treant, if they think Gijan will win.
Thus, when you take commisions in to account, the house will at least make some money.

Penned by my hand on the 13th of Scarlatan, in the year 214 AF.