Handicap bet refers to a method used by bookmakers to level the playing field between teams or players of varying abilities, with the goal of making the betting more attractive and competitive. The bookmaker may add or subtract points from the final score of the favorite. 

For example, if team A and B are playing a soccer game and the line is +1.25 for team A which means that they’re the underdogs, If they lose by 1 or less you’re going to win the bet. Final result of team A is 1 and team B is 2. If you bet on team A in that case you would win your bet.