“Vig” is short for the term “vigorish,” which refers to the commission sportsbooks charge on every bet. “Vig” and “juice” both refer to the same thing. Sportsbooks use a basic mathematical formula to calculate the vig, which ensures they make a profit. The vig is hidden as it is built into the odds the sportsbooks offer. If you can reduce the vig, you will increase your earnings over time. If you don’t take it into account, this lowers your betting edge.

What does “vig” mean?

Whenever you place a sports bet, the sportsbook charges a built-in fee or commission. It doesn’t matter whether you place your bet at a physical sportsbook or use a sports betting app on your mobile phone. Retail or online sportsbooks make a profit by taking a cut of every bet you place, despite the outcome of the wager.

How do you calculate the vig?

A simple mathematical formula lies behind calculating the vig. It involves converting odds into decimal figures, adding them together, and subtracting one from the total. This leaves a percentage, otherwise known as the vig, which can range from 3% to 10%.

One of the most popular sports in America is football. When the odds are even, the vig is easier to calculate, such as in a point spread bet where both the Philadelphia Eagles and the Kansas City Chiefs have odds of -110. You may bet $110 on the Eagles, and another bettor may wager $110 on the Chiefs, which totals $220 in wagers.

You must bet $110 to win $100 profit. If you win your bet, you will receive $210, which is $110 plus $100 in profit. The sportsbook’s cut on this is $10. The vig equals that cut divided by what the sportsbook pays out. (10/210 = .0476, or 4.76%). The price you pay to wager differs as odds for spreads and totals change.

How does vig affect betting?

The unique entertainment value of sports betting is that you can make savings by searching for the best odds. The vig may seem like a small amount, but it adds up over time, affecting long-term profitability. This is why you need to factor it into how you manage your bankroll. By comparing odds across several sportsbooks, you can capitalize on lower vig. Minimizing vig charges will contribute to your bottom line.