European handicap can be positive and negative, were positive means adding a conditional amount of goals to the goals the team had scored in the regulation time (in football); and negative means subtraction of the conditional amount of goals. If after the application of the European handicap the chosen team wins, so does the bet. If the outcome is a draw or the team loses, the bet loses, too.
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For example, in a match between Arsenal and Liverpool, a punter places a bet on Liverpool’s win with +1 European handicap. Arsenal wins 2:1. After the handicap is applied, the score becomes a 2:2 draw, which mean the bet loses. However, if the teams play 1:1, after applying the handicap Liverpool will win, so will the bet.
Most bookmakers let to bet on a favorite or on an underdog with both positive and negative European handicap.
European handicap is different from Asian handicap. The first has only integer values and does not provide for a partial or full refund of the bet in case of a draw after the handicap application. For betting on draws, European handicap has other betting choices.