Football (soccer) is one of the few sports in the world where a tie is a fairly common outcome. With traditional fixed odds, ties are treated as an additional outcome to the game. In other words, bettors lose when they place a wager on either team to win and the game ties. With Asian Handicaps, however, the chance for a tie is eliminated by use of a handicap that forces a winner. This creates a situation where each team has a 50-50 chance of winning; similar to the odds for a basketball or baseball game where a tie is impossible.

This system works in a straight-forward manner. The bookmakers's goal is to create a handicap or "line" that will make the chance of either team winning (considering the handicap) as close to 50% as possible. Since the odds are as close to 50% as possible, bookmakers offer payouts close to even money, or 1.90 to 2.00. Asian Handicaps start at a quarter goal and can go as high as 2.5 or 3 goals in matches with a huge disparity in ability. What makes Asian Handicaps most interesting is the use of quarter goals to get the "line" as close as possible. Taken in conjunction with the posted total for the game, the handicap essentially predicts the game's final score.

Subsequently, many matches are handicapped in ½ and ¼ intervals; both of which eliminate the possibility of a push since no one can score a half-goal. Quarter (¼) handicaps split the bet between the two next closest ¼ intervals. For instance, a $1000 bet with a handicap of 1 ¾ is the same as betting $500 at 1 ½ and $500 at 2. With ¼ handicap bets, you can win and tie (win ½ of wager) or lose and tie (lose ½ wager). The ¼-goal handicap may be expressed by some bookmakers as "0 and ½", or (especially for bookmakers whose systems are designed for sports like American football and basketball (where bets have a handicap that is designed to make the odds as close to even as possible)) as "pk (for "pick-em") and ½".
Match: Everton vs. Newcastle United
Handicap: 0 : +1.0, +1.5
Explained: This handicap states that half of your bet goes on Newcastle winning, or losing by less than 1 goal, and half on Newcastle winning, or losing by less than 1.5 goals.
If the final score is Everton 1-0 Newcastle, half your bet would be refunded due to draw (Everton 1 - +1 Newcastle, i.e: Newcastle lost by exactly one goal). The second half would win (Everton 1 - +1.5 Newcastle, i.e: Newcastle lost by less than 1.5 goals).

In the event that a whole number is used for the handicap, the handicap adjusted final score could result in a draw. This situation is not a draw, but a push. With a push, all bettors have their original wagers returned as there is no winner.