A 3-way handicap is when you are betting on a match in which one of the teams is given extra points/goals, and there are three possible outcomes. For example, let’s say Chelsea play West Ham (+1) and the Hammers get a one-goal advantage. The betting outcomes would be as follows:
Chelsea 2:0 West Ham – Handicap outcome is 2:1 – 1 (the home team wins)
Chelsea 2:1 West Ham – Handicap outcome is 2:2 – X (a draw)
Chelsea 2:2 West Ham – Handicap outcome is 2:3 – 2 (away team wins)