As the popular saying suggests, free bets do not truly exist. Sportsbooks operate as profit-oriented establishments with long-term goals. Similar to any other company, their primary objective is to generate revenue. Ideally, they aim to pay out less than they receive. Moreover, they incorporate certain safeguards to ensure they remain profitable.

Vigorish, commonly known as the vig or juice, is an integral part of the overall business strategy. Essentially, it can be understood as a charge for enabling bets. To illustrate with a typical spread bet, winners usually do not double their money due to the vig, which guarantees that the bookmaker receives a portion of the wagers.

The vigorish is easily noticeable in spread and total bets, however, it may not be apparent in other types of wagers. Nevertheless, it still exists.

In this comprehensive guide, we will thoroughly explain a frequently misunderstood topic. By the end, you will have a clear understanding of its functionality, methods to calculate it, and its impact on your financial outcome.

What does vigorish mean?

In the realm of risking money with the aim of gaining more, it is quite usual for the establishment to retain a portion of the funds. This is observed in various domains, including casino gambling, financial trading, and even casual games like pools or other forms of luck-based competitions. This practice is also prevalent in both live and online sports betting.

Vigorish is a commonly used term in the industry that signifies the portion of the bet retained by the house. In the past, bookies would collect a fee known as the vig. As sports betting expanded to physical venues and online/mobile platforms, the concept of vigorish remained intact.

Thinking of the vig in sports betting as a fee or commission can be beneficial. When you place money on bet types like the spread or total and emerge victorious, your winnings won’t exactly double. With standard odds of -110, you can anticipate a profit of approximately 90.91%. This implies that a $100 win will yield $90.91. The disparity between this amount and the full $100, which is $9.09, represents the vig.

Is the vig always the same on bets?

Standard odds of -110 are used as a starting point for certain bet types. When the odds are at this level, the vig remains consistent. However, market activity can often impact these numbers. For instance, if there is a significant amount of betting on one side of a total, it may result in adjustments to the odds. Here is an example:

• Over 5 (-115)
• Under 5 (-105)

Sportsbooks may adjust the odds to balance the betting action, making the less popular side more enticing while reducing the appeal of the opposite side. Consequently, this alters the proportional amount of the vigorish (vig) in relation to individual bets. Although the -110 standard can provide a rough estimate of the vig, it’s important to bear in mind that these adjustments will affect the final payment amount.

The amount of vig can vary for different bet types like moneylines, where the odds can be unpredictable. When betting on an underdog with positive odds, it may seem like there is no vig involved. Since a winning bet at positive odds would double or increase your money, technically it may not be present, but it is compensated for in other ways.

How is vig applied to different bet types?

In order to comprehend the functioning of the vig, it is crucial to grasp its connection with the different types of bets. The vig significantly affects the amount of return you receive, which ultimately affects your overall profit and loss in sports betting. While we have provided a brief overview of the top three bet types for team-based sports, there is much more to explore in this regard.

Let’s explore the vig in relation to them in more detail.

Vig on point spread bets

The point spread bet is primarily linked with wagering on football and basketball. The spread is established by oddsmakers, and bettors choose whether to support the favorite by deducting the points or support the underdog by adding the points. The odds determine the potential winnings for bettors when they place their bets. In most sportsbooks, the standard odds for spread bets are set at -110.

From time to time, operators may present special offers or reduced juice, like -105, so it’s important to be vigilant. Initially, the odds will be identical for both sides. However, as bets are placed, the bookmakers may adjust the odds to balance out the betting activity. When you enter a bet amount at a sportsbook, the potential return will be displayed based on those odds.

If we use the standard odds of -110, users can anticipate a return of $90.91 on winning bets, which is equivalent to 90.91%. When the odds are adjusted, you can estimate the potential return by considering the amount you need to wager to receive $100 back. For instance, at odds of -115, you would need to bet $115, and at odds of -105, you would need to bet $105. We will explain the process of calculating the precise vigorish shortly.

Other team sports also utilize different versions of the spread formation, albeit under different names.

• The runline, often established at 1.5, is utilized in baseball.
• The puckline is set at 1.5 for both hockey and generally.
• The goal line for soccer bettors is a wager that can have a value of 0.5 or greater.

Operators may also provide different spreads and lines for certain sports, like offering a 2.5 spread for MLB or a unique number for an NFL game. The odds for these types of bets will be modified accordingly. Moreover, spread variations for other sports can display more diversity compared to football and basketball betting. For instance, you might come across odds like -135/+105 for both sides of a runline.

Vig on totals bets

The vig on totals operates in a similar manner to the spread. In most cases, the default value for both the Over and Under is -110, which is usually mentioned when it is initially published. The number may be affected by special offers, and it will also change as bets start to be placed. It is not unusual to observe significant deviations from the usual value in heavily-wagered matches.

It is strongly advised to shop around and compare lines at multiple books for all types of bets. This is especially beneficial when it comes to totals. You might discover slight variations in the actual total, such as one book offering 209.5 on an NBA game while another offers 209.0, as well as differences in the odds.

The vig and potential return fluctuate alongside the changing odds. For instance, let’s examine the possible returns on a successful $100 bet at different price points.

• A wager of $100 at +100 odds would yield a profit of $100.
• $95.20 profit at -105
• $90.90 profit at -110
• $87.00 profit at -115
• $83.30 profit at -120
• $80 profit at -125

When looking at individual bets, the idea of making a small extra profit may not appear significant. However, if we consider the cumulative effect over a season or with a high volume of bets, these seemingly insignificant amounts can greatly impact your overall earnings. Therefore, it is crucial to strive for the highest possible returns in order to maximize your financial outcome.

Vig on moneyline bets

In the standard moneyline bet, the favored side is represented by negative odds, while the underdogs are indicated by positive numbers. Negative odds signal the presence of vig, which is accounted for. Bettors who win with positive odds can expect to double their money or even earn more, but the vig compensates for this, and it’s worth mentioning that the bookmakers retain the losing wagers on the opposing side.

If we analyze the returns for winning bets on both sides in a closely contested game with odds split at -130 for the favorite and +110 for the underdog, a successful $100 wager on either side would yield the following amount:

• Odds of -130: $76.90
• Odds of +110: $110

When we analyze the individual bet, the sportsbook collects a total of $200 for this game. In the event that the underdog team wins, they will give out $110 along with the initial amount wagered on that side. Conversely, if the favorite team wins, they will pay out $76.90 in addition to returning the original $100 bet placed on that side.

While operators may not generate a profit on every individual wager, they do so in the long run. The vig imposed on moneyline bets and other types of wagers ensures this outcome. To optimize your returns on winning bets, it is advised to thoroughly compare prices when betting on the moneyline.

Vig for other bet types

The vig is also present in other types of bets, including props, futures, and live betting. In these instances, it operates similarly to what we discussed about the moneyline. While there may be occasions where a fee is charged for winning bets with positive odds, there will also be a significant number of losing bets that do not require any payouts.

Although the book may endure occasional losses, its business model focuses on long-term success. A useful perspective is to consider that the book pays less for probable outcomes and more for unforeseen ones. Unlikely events usually have unfavorable odds with a margin included, while favorites generally have a strong historical performance.

All types of bets are prone to surprises. Underdogs will inevitably secure their victories, and there is no escaping this reality for both operators and users. The ultimate objective for both parties is to ultimately achieve overall profitability. Sportsbooks have the advantage of incorporating the vig, which provides them with added security.

How much vig are sportsbooks charging?

Online, you can find numerous handicapping calculators that serve as valuable tools to have readily available. These calculators can effortlessly assist you in determining the following:

• Winning bets will be paid out at the odds that are listed.
• The probability inferred from the odds provided by a sportsbook.
• The bookmaker charges a margin on your bets.

To illustrate, let’s examine a typical point spread bet. The odds for both sides are set at -110, resulting in identical $100 wagers being placed on each side. In the event of a win, the victorious side will receive a total of $190.91, consisting of the initial stake and a $90.91 profit. The bookmaker collected a sum of $200, meaning they retain $9.09, equivalent to a 4.54% share.

It is not always easy to determine the outcome. However, you can determine the vig in such scenarios by calculating the implied probability. This can be achieved by applying the following formulas.

• The formula to calculate the implied probability when odds are negative is: (Odds / (Odds + 100)) * 100 = implied probability.
• The implied probability can be calculated by dividing 100 by the sum of the odds and 100, when the odds are positive.

Now, let’s observe how it works in practice with a moneyline bet. In this scenario, the favorite has odds of -135, while the underdog is listed at +105. By applying the two formulas mentioned earlier, we obtain the following results:

• Negative: 135/(135+100)*100 = 57.44%
• Positive: 100/(105+100)*100 = 48.78%

When we combine the implied probabilities of 57.44 and 48.78, the result is 106.22. However, the total range of outcomes should always equal 100%. So, why is there an excess of 6.22%? This excess indicates that a vig is being charged in this scenario. To determine the vig, one must put in some effort, unless a handicapping calculator is used. Nevertheless, it is worthwhile to invest time in calculating the vig.

What to remember about the vig in betting

Vig, also known as vigorish, is the fee charged by a bookmaker to facilitate a bet. This fee is already included in the displayed odds. You can manually calculate the amount charged by using formulas or rely on an online handicapping calculator for assistance.

Considering the impact on your overall profit and loss, it is crucial to take into account the odds and vig associated with the bets you place. This is particularly important for individuals who view sports betting as more than just a pastime or source of entertainment. To minimize the effect, it is advisable to invest time in comparing and selecting the most attractive odds before placing your wager.