Vig, vigorish, juice, cut, take, margin, house edge, these are various names for the same concept: an advantage that sportsbooks have over bettors to ensure they make a profit.
The vig has been a part of sports betting for a long time. Sportsbooks operate as businesses and face risks.
To minimize the chance of substantial losses, sportsbooks adjust the odds slightly in their favor.
The vig may appear puzzling, both in terms of how it functions and why it’s significant.
Let’s take a closer look at it.
What Is the Vig or Juice in Sports Betting?
Vig, which is short for vigorish, is like a fee or commission that sportsbooks charge when you place a bet.
This fee ensures that the sportsbook makes money, no matter the game’s outcome. It also affects how much money you can win as a bettor.
How Does Vig Work in Sports Betting?
When oddsmakers believe two teams are evenly matched, and each has a 50-50 chance of winning, the odds for that game would typically be +100.
This means that if you bet $100 and win, you get a $100 profit.
Sportsbooks include the vig in the odds they provide so you won’t see a separate “vig” section in a sportsbook app.
However, most odds on sports betting sites look different from this. In a balanced matchup, they usually offer odds around -110 for either side.
If you bet $100 on these odds and win, you’d get a profit of approximately $90.91, leaving about 9% of your bet with the sportsbook.
That 9%, or $9.09, is the sportsbook’s share and acts as a fee for accepting and processing yours and other sports bettors’ bets.
Is Vig the Same as Juice?
Yes, in sports betting, vig and juice are two words that mean the same thing. Both terms are commonly used in betting, so might encounter them frequently.
Why Is It Called the Vig?
The vig, which is short for vigorish, serves as the house edge in sports betting.
While the term “house edge” is often used in casinos, it’s relevant here too.
In sports betting, the vig is the means by which a sportsbook earns money.
Sports betting websites must generate profits, so they incorporate a slight advantage into each bet.
Do You Pay the Vig Before or After You Win a Bet?
You pay the vig before you place a bet, as it’s essentially the fee for using the bookmaker’s services.
This fee is built into the odds, so when you win a bet, you receive your original stake plus your winnings (if the bet is successful) minus the vig, which goes to the bookmaker as their profit.
So, you don’t pay the vig after you win; it’s accounted for in the odds you see when you place your bet.
What Is the Purpose of Vig in Sports Betting, and Who Benefits?
The vig is an important aspect of your sports betting activities, whether you calculate it or not.
Casual bettors, will place their bets and hope for the best, and that’s perfectly okay.
This approach is suitable, especially if you stick to one sportsbook and don’t compare odds across different books.
However, dedicated sports enthusiasts or experienced bettors looking to maximize their potential profits should pay close attention to the vig.
The vig can differ from one sportsbook to another. When you come across different sportsbooks offering varying vigs on the same bet, the wise move is to choose the one with the lower juice.
Over time, even small differences in vig and payouts can make a significant impact, especially on larger bets.
This can help you rebuild your betting strategy and, hopefully, lead to more profitable wins.
If you aim for long-term profit, it’s a good idea to bet in units and manage your bankroll wisely.
The vig is in place to guarantee that the sportsbook earns a profit, no matter the outcome of the event people are betting on, but you want to take advantage of bets where the vig affects you less.
When making bets, you definitely should take the vig into account because it has a direct impact on how profitable your wagers are.
Which Sports Betting Sites Charge Vig? (Do All Sports Betting Sites Charge Vig?)
Most sports betting sites charge vig, as it’s a common practice in the industry. The vig is how sportsbooks profit, built into the odds they offer.
It’s important to note that the vig is not explicitly stated when you place a bet. Instead, it’s incorporated into the odds you see.
While most sports betting sites charge vig, the specific vig amount can vary from one site to another and can also depend on the type of bet and the market being offered.
Different sportsbooks may offer slightly different odds, which can affect the overall vig.
It’s a good practice for you to compare odds and lines from different sports betting sites to find the best value for your bets, as differences in the vig and odds can impact your potential profits.
How Much Vig Do Sports Betting Sites Charge?
The amount of the vig can vary, and sometimes, it needs to be clarified from the sportsbook odds.
However, for spread and total bets where both sides have -110 odds, it’s easier to understand.
- Both sides of the bet have -110 odds.
- One bettor places a $110 wager on Team A, and another bets $110 on Team B.
- This adds up to $220 in total wagers.
- The winning bettor would get back $210 (their initial $110 plus $100 in profit).
- The sportsbook’s share, in this case, is $10 ($220 from both bettors minus the $210 winnings)
- To calculate the vig, divide the sportsbook’s cut by the total payout: 10/210 = 0.0476, or 4.76%.
As the odds for spreads and totals change, so does the cost of placing your bet.
If the odds decrease, like going to -108 or -106, you pay less and have the potential for higher returns.
On the other hand, if the odds increase, for example, to -112 or -114, the bet cost rises, and you need to wager more to win the same $100 profit mentioned earlier.
This is why I keep talking about the importance of line shopping.
How Is Vig Calculated on Bets?
To calculate the vigorish or vig, you can find it by determining the implied probability of each side of the bet winning.
Then, add both implied probabilities together and subtract 100 to find the vig.
If the odds start with a minus sign, you can use this formula to calculate the implied probability:
- Odds / (Odds + 100) x 100 = implied probability
- For odds that begin with a plus sign, you’d use this formula:
- 100 / (Odds + 100) / 100 = implied probability
For example, odds of -110 translate to an implied probability of around 52.4% using that formula.
If a sportsbook offers -110 on both sides of a bet, you will calculate it as follows: 52.4 + 52.4 – 100 = 4.8.
This tells you that the vig is 4.8%, or 4.76%, to be more precise. However, you don’t need to calculate it manually.
You can use a free vig sports betting calculator online, and it will quickly tell you the margin that a sportsbook is taking.
Just enter the odds on either side of the bet, which will provide you with the house edge. A lower house edge is better for bettors.
What Impact Does Vig Have on Betting Odds and Line Movements?
Betting Odds
Shifts in Profitability
When you place a bet, you’ll see odds that reflect the vig. The odds you receive on a bet, after accounting for the vig, will determine how much you stand to win if your bet is successful.
The higher the vig, the less favorable the odds for the better, making it harder to profit.
Influence on Payouts
The vig impacts the potential payout you’ll receive if your bet is successful. The higher the vig, the lower your potential profit.
For example, if you bet $100 at even money (1:1 odds) and there’s no big, you would win $100.
However, with vig, the odds might be adjusted to 1.91 (or -110 in American odds), meaning you would win $91 for a $100 bet, with $9 going to the sportsbook as profit.
Comparing Different Sportsbooks
Vig can differ from one sportsbook to another. To maximize your potential profit, it’s essential to compare odds and lines from different sportsbooks.
By finding the sportsbook with lower vig or better odds for the same bet, you can increase your potential returns.
Impact on Betting Strategy
High vig can make it more challenging to be profitable in the long run, especially if you place many bets.
It’s important to understand how vig affects your betting strategy and to be selective about the bets you place to account for the vig.
Line Movements
Betting Imbalance
Sportsbooks aim to achieve a balanced betting action on both sides of a wager.
When there’s a significant imbalance in the bets placed on one team or outcome, the sportsbook may adjust the line to encourage more bets on the less popular side, in their attempt to even the amount of money being bet on each side.
By doing this, they can minimize their risk and make a profit regardless of the outcome.
Changing the Vig
In response to betting imbalances, sportsbooks may change the vig, altering the odds to make betting on the less popular side more attractive.
For example, if many bettors are backing Team A, the sportsbook might increase the vig on Team A, making it less favorable, while lowering the vig on Team B to attract more bets.
Public Perception
Sportsbooks are also aware of public sentiment and the biases affecting betting patterns.
They might adjust lines and vigs based on public perception, team popularity, and recent performance.
These adjustments aim to exploit biases and encourage more balanced betting.
Injuries and News
Significant news, such as player injuries or other developments that can impact the outcome of a game, can lead to rapid line movements.
Sportsbooks adjust their lines to account for new information and to reflect how it might affect the game’s outcome.
Sharp Bettors
Experienced or “sharp” bettors often identify favorable lines and vigs. When they place large bets on specific sides, sportsbooks may adjust their lines quickly to reduce their exposure to potential losses.
How Does the Vig Affect a Sports Bettor’s Profitability?
If a bettor consistently places bets with a high vig, they will need to have a higher winning percentage to make a profit.
For instance, if a bettor regularly bets at a sportsbook with a 9% vig, they would need to win 52.4% of their bets to break even, much higher than a bettor who wagers at a sportsbook with a lower vig.
With the vig, a $100 bet would result in a $190 payout. If there were no vig, the same $100 bet would lead to a $200 payout.
In simple terms, on -110 odds, if you want to win $100, you’d need to bet $110 because of the vig, and when the bet wins, that $10 you’re not getting goes straight to the sportsbook.
This is the sportsbook’s fee for accepting the bet and ensuring they make a profit. The term “vig” refers to the margin or profit that the sportsbook takes on its betting lines.
How Can You Pay Less Vig as a Sports Bettor?
Sportsbooks are quite savvy and don’t leave opportunities for bettors to exploit the odds easily, making it nearly impossible to beat the vig.
However, you can make some calculations to remove the vig from the equation by assessing the actual probabilities of each side of the bet.
This allows you to determine whether a specific line offers value.
First, calculate the implied probability for each team or player, which is the risk divided by the potential return.
Add these two numbers together to get the total implied probability.
Then, divide the implied probability for each side by the total implied probability to find the actual probability in percentages.
Ensure that the total actual probability adds up to 100%. This will give you insight into the real probability of each outcome before considering the vig set by the sportsbook.
With this information, you can decide if a particular bet is worth taking.
In some cases, you may come across odds boost promotions that can help you avoid the vig if your bet wins.
Use these promotions and bonuses to your advantage when they are available to eliminate the juice. While some systems claim to beat the vig and guarantee profits, they tend to be complex, and none are foolproof, so approach them with caution.