What Is the Vig in Sports Betting?
Contents
Sports betting vigorish, or simply “vig” is the commission charged by a sportsbook. The industry standard is about 10% but it can vary by book.
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Introduction
Sports betting is a popular way to make money, but it can be confusing to newcomers. One of the most common questions is “what is the vig?” The vig, short for vigorish, is the commission that the sportsbook or bookmaker charges on each bet. It is essentially their fee for taking your bet.
What is the vig?
The vig in sports betting is the percentage of the bet that the bookie keeps as a commission. For example, if you bet $100 on a game with a vig of 10%, then you are actually only betting $90 because the other $10 goes to the bookie. The vig can also be referred to as the juice or the cut.
The standard vig
The vig, short for vigorish, is the percentage charged by a bookmaker to place a bet. The industry standard for the vig is 10 percent, meaning that for every $100 bet, the bookmaker will keep $10 as profit. Of course, this doesn’t mean that the bookmaker always wins — they still have to pay out winners — but over time, the vig will ensure that the bookmaker comes out ahead.
The size of the vig can vary depending on the sport and the bookmaker, but it is usually between 5 and 10 percent. For example, a bookmaker might charge a 5 percent vig on football bets and a 10 percent vig on basketball bets.
The reduced vig
The reduced vig is a popular promotion offered by sportsbooks. It essentially means that you will pay less in vig (juice) on your bets. For example, if a book is offering -110 odds on a game, they are usually only making $10 profit off of the bet. But with a reduced vig promotion, they may only make $5 profit. This is obviously a great deal for the bettor, as it reduces the amount of juice you have to pay.
The reduced vig can be offered for a number of different reasons. Sometimes it’s just a general promotion that the book is running. Other times, it may be specific to certain events or games. For example, a book may offer reduced vig on all Super Bowl bets, or on all bets placed on the Los Angeles Dodgers during the regular season.
It’s important to note that the reduced vig is not always available. Sportsbooks will often change their promotions and offers, so it’s important to check around and see what’s available before you place your bets. But if you can find a reduced vig offer, it’s definitely worth taking advantage of!
How does the vig work?
If you bet $100 on the 49ers to win their football game and they win, you’ll get paid $110. If you bet $110 on the Rams to win and they win, you’ll get paid $100. The extra $10 is the vig, and it’s how the sportsbook ensures it doesn’t lose money on the bet.
The bookmaker’s margin
The vig, also known as the bookmaker’s margin, is the percentage of each bet that the bookmaker keeps as profit. For example, if you bet $100 on a football game with a vig of 10%, you will pay the bookmaker $110. If you win the bet, you will receive $100 from the bookmaker, for a net profit of $10.
The vig can vary depending on the sport and the event, but it is typically between 5% and 10%. The higher the vig, the more difficult it is to make a profit from betting.
The overround
The overround is the margin the bookmaker builds into a market to ensure they always profit regardless of the outcome. This is commonly known as the “vig” or “vigorish.” In order for a bookmaker to make money from betting, they need to control the market so that no matter who wins, they will always make a small profit.
This is why you’ll never find true odds on any betting market. For example, in a coin toss, there are two possible outcomes (heads or tails) and each has a 50% chance of happening. True odds for this would be 1/1 (2.0 in decimal form), but you’ll never see this offered by a bookmaker. Instead, you might see odds of 1.91/1 (decimal) or -110 (American).
The overround can be seen as the inverse of value. If a bet has positive value, it means that the likelihood of that event happening is higher than what the odds imply. If there is negative value, it means that the likelihood of that event happening is lower than what the odds imply. And if there is no value, it means that the likelihood of that event happening is exactly what the odds imply.
How to calculate the vig
In order to calculate the vig, you need to know the probability of an event occurring. The vig is the percentage of the bet that the bookmaker or sportsbook keeps as a commission.
The standard vig
The vig, or juice, is the fee charged by a sportsbook to accept a bet. The standard vig in most sportsbooks is 10 percent, meaning that a bettor would have to risk $110 to win $100.
The reduced vig
The reduced vig is a type of vig that is offered by some sportsbooks. The reduced vig means that the sportsbook takes less of a percentage from the bettor, which in turn means that the bettor can win more money. For example, if a bettor were to bet $100 on a game with a standard vig of 10%, they would stand to win $90 if they won their bet. However, if the same bet were made with a reduced vig of 5%, the bettor would stand to win $95. The reduced vig is generally only offered on specific types of bets, and it is not offered on all games.
Conclusion
The bottom line is that the vig is the fee charged by the sportsbook for accepting your bet. It is NOT a commission charged by the bookie, and it is NOT a fee charged by the casino. The vig is simply the cost of doing business as a sportsbook.
