On one hand, they help bookmakers minimize risk by facilitating trading with parity or balancing the amount of wagering on each side of the match.
On the other hand, Asian handicap markets are typically low-margin offerings that do not contribute as significantly to the gross win as higher vigorish betting options like 1X2.
In other words, bettors lose when they place a wager on either team to win and the game draws.
This creates a situation where each team has a 50-50 chance of winning; similar to the odds for a basketball or football spread handicap typically offered by Las Vegas sportsbooks.
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.
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.
The ¼-goal handicap may be expressed by some bookmakers as "0 and ½", or as "pk and ½" (for "pick-em") - 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.
Seen from the perspective of "splitting up the stakes", it might be divided as such: Explained: This handicap states that half of your bet goes on Newcastle to win, draw, or lose by less than 1 goal; and half on Newcastle to win, draw, or lose by less than 1.5 goals.