How it works
European handicap (−1) on the home side wins if they win by two or more. Win by exactly one goal — that is the «handicap draw», a separate outcome; your bet on the handicap win loses. There is no push and no stake back, which is the key difference from the Asian handicap.
Why the odds are higher
Three outcomes instead of two mean higher odds on each — the flip side is losing in situations where the Asian line would refund. EH(−1) win pays more than AH(−1) precisely because AH refunds the one-goal win.