The term “vig” or “vigorish” refers to the commission that a bookmaker or sportsbook takes on bets. It’s essentially the fee you pay to place your bet. The vig is how sportsbooks make a profit, regardless of the outcome of the events being bet on. 

Detailed Explanation Of The Vig:

Calculating The Vig:

The vig is typically built into the odds. For example, in a perfectly even match-up, you might expect the odds for each team to be even money (1:1). However, due to the vig, the actual odds might be slightly worse, for example, 10:11. This means you need to bet $11 to win $10, with the extra $1 representing the vig.

Purpose:

The vig compensates the sportsbook for taking on the risk associated with betting, and it’s their way of ensuring they make money regardless of the outcome.

Effect on Bettors:

The vig affects the potential profitability of bets. Bettors need to overcome the vig to break even or make a profit. This is why it’s important to shop around for the best odds and lowest vig.

Varying Vig:

Different sportsbooks may have different levels of vig, and it can also vary depending on the type of bet and the sport you are betting on. It’s always advisable to be aware of the vig you’re paying as it directly impacts the value you’re getting from your bets.

Understanding the vig is crucial for bettors as it helps in assessing the value of the odds offered by a sportsbook, and consequently, in making more informed betting decisions. The lower the vig, the better the odds, and the more value a bettor is likely to get from their wagers.