The answer to “what is the vig” is that vig, also known as vigorish or juice, is the fee charged by an online sportsbook when taking a bet, collected only if the bettor loses. These terms refer to the same concept in sports betting.
Similar to the “house edge” in casinos, vig in sports betting represents the advantage an online sportsbook holds to generate profit. Sports betting sites incorporate a slight advantage into each wager to ensure their profitability.
The vig is determined using this standardized formula:
V = 100 (1 – (p q) / (p + q))
For the following formula to work, convert payouts (p and q) into decimal odds.
It's crucial that both sides of the bet have proportional amounts to make the vig effective. Multiple sportsbooks adjust odds before a game to attract action on the less favored side. Balanced wagers ensure the vig guarantees good money.
Sportsbooks must also strike a balance in setting the vig to avoid deterring bettors. Not offering best odds might lead new customers to seek better options elsewhere.
For instance, if both sides have -120 odds, the vig is 8.33%. While profitable, odds may seem unattractive. If odds were -110, the vig would be 4.55%, increasing bettor engagement.
The standard vig, also known as ‘juice,' for spread and totals betting is typically -110 on both sides, equaling $0.20. This means $0.10 per dollar on the favorite and $0.10 on the underdog. It determines the customer's potential earnings after a win.
For instance, a $1 wager that wins results in $1.90, considering the initial bet.
This scenario grants the sportsbook a 10% cut. When betting at -110 odds, the house edge is about 4.77%, requiring a 53% win rate for profit. Professional bettors often aim for a 55% win rate, sustaining a living from wagering.
Variations like -112/-108 or -115/-105 maintain a similar 4.7% to 4.8% vig. Be cautious of different sportsbooks deviating from this standard, as it may indicate higher charges compared to the industry norm.
The vig, or juice, plays a crucial role in sports betting. Casual bettors may overlook it, but seasoned bettors and sports enthusiasts seeking potential profits should pay attention. Vig varies between sportsbooks, impacting potential gains. Picking online sportsbooks with lower vig can yield advantages, particularly over time and with larger bets.
Bettors use vig to assess disadvantages, while sportsbooks rely on it for guaranteed profit. Vig differs across bets and sportsbooks, so tracking and understanding these variations can offer a slight edge.
While one sportsbook consistently having the lowest vig could pose a competitive threat, most sportsbooks vie with each other through odds and vigorish. This benefits bettors, creating a competitive market, especially with multiple online options. No need to calculate vig separately—compare odds.
For example, if Caesars Sportsbook provides +155 odds and DraftKings Sportsbook offers +162 for the same bet, DraftKings is the preferable choice, as odds reflect the vig situation.
Sportsbooks safeguard against exploitable odds, making beating the vig nearly impossible. Instead, focus on assessing actual probabilities by calculating implied probability for each side of a bet. Deduct the vig to gauge whether a bet holds value.
Systems claiming to beat the vig exist, but they're intricate and not foolproof. Opportunities are limited due to sportsbooks needing profits from the vig.
Good news: Odds boosts promotions can help avoid vig when your bet wins. Leverage promotions and bonuses to mitigate juice. Occasional promos may offer no-juice odds on select games, allowing you to seize opportunities and reduce vig when available.
In conclusion of “what is the vig”, understanding and factoring in the vig, or vigorish, is a fundamental aspect of successful sports betting. While online sportsbooks employ the vig to ensure their profitability, bettors can analyze implied probabilities to assess value in their wagers.
While opportunities to fully beat the vig are limited, leveraging promotions and bonuses can help mitigate its impact. By staying informed about the vig and seeking advantageous opportunities, bettors can make more informed decisions for potential outcomes and enhance their overall betting strategy.