In sports betting, a two-way bet is a bet in any online sports betting market that only has two potential outcomes.
Consider a college football moneyline market, where either the favorite or underdog will win. There are no other possible outcomes.
Two-way bets are fundamentally different from three-way bets, where there are three potential outcomes. Three-way bets are prevalent in soccer betting, where the most common markets offer Side A, Side B, or a draw option.
Example of a Two-Way Bet
There are plenty of examples of two-way bets in American sports betting. In the NBA, for instance, you may take either side of a game in the spread, total, or moneyline markets. All three are examples of two-way bets because there are only two possible market outcomes.
College football and college basketball rely on two-way bets because ties are not possible in side-based markets.
NFL odds are largely bet as a two-way market, though there are technically three-way markets available for those who want to bet on ties.
In short, any potential bet where there are only two possible market outcomes is a two-way bet.