There is no single driving force behind Betting.us – we are a team of betting experts who all contribute their experience and knowledge. From data analysts and legal professionals to veteran gamblers and creative writers, we all contribute with a unique perspective and skill set. This collective wisdom ensures that our content is both comprehensive and trustworthy.
Vigorish Betting Explained
The vigorish is the name given to the fee that sportsbooks apply to all bets. No matter where you bet, you won’t be able to get out of paying the vigorish, as these are an important element of keeping the betting industry sustainable. In this guide, we’ve explained the vig meaning, discussed how it's calculated, and much more.
Sports Betting Vig Meaning and Explanation
Often referred to as the “vig” or “juice”, a sports betting vigorish is the name of the commission that is charged by betting operators on each bet. It is important that this fee is charged or sportsbooks could be bankrupt by offering true odds on each market.
In simple terms, one could define vig fees as being like a casino’s house edge, with the rate of the sportsbook’s return already factored into the prices. While it may seem as though consideration of the vig is unnecessary as it is already included in the odds, it is crucial to understand how it impacts potential profits.
For example, if a bet has a 50/50 chance of being successful, the betting odds may in fact have an implied probability of 52.4%. Theoretically, backing this even chance market would then penalize the player for what is seen to be an advantage over the sportsbook.
Therefore, it makes sense to make considered bets that won’t see you paying too much vig. A common scenario where more vig is sacrificed is a hedge bet, which can see bettors pay a vig twice to minimize their losses. Seasoned bettors will factor the vig into their betting decisions to avoid excess fees.
Is There a Standard Vig?
While sportsbooks tend to charge a standard vig on most bets, this can change. Numerous factors can influence the vig, including the type of market, the event, and the competition. But the vig doesn’t differ across bet types, whether you’re making a point spread bet or hedging, it’s the same. It’s common to find a vig of 10% applied to bets, and a non-standard vig won’t be too different from this.
One instance when a sportsbook might lower its vig is during a popular sports event such as the Super Bowl. As this attracts plenty of bettors who may not frequently wager, sportsbooks may vie to offer the best odds prices on the market. To improve the odds, the vig must be lowered.
On the same note, less popular markets or exclusive markets may have higher vigs as bettors won’t find them anywhere else. This is why greater competition in the betting industry is always better for customers. Not only can bettors shop around for the best odds, but the competition can drive down prices overall.
How to Calculate the Vig
Before you can calculate a market’s sports betting vig, you will need to find the implied probability within the odds. There are several online tools and tables that display the implied probabilities of common odds prices, though you can also use the following formulas if you don’t want to use a vig calculator:
If the odds are favorites (-) the formula for implied probabilities is:
- Odds/(Odds + 100) x 100
If they are underdogs (+) the formula is:
- 100/(Odds + 100) / 100
You then multiply the final product by two and minus 100. So if a sportsbook offers odds of -110, the above formula will result in a result of 4.8%. This is the sportsbook’s vigorish fee. This calculation is useful for bettors to know how much of the stake is going toward a sportsbook’s takings.
Importance of Vigorish
In an ideal world, we’d all love to wager on markets without any “juice” added. However, this is an integral element to ensure that our favorite sportsbooks can continue operating without the risk of bankruptcy. The vig is not only used to turn a profit, but this helps to cover costs of operation and bonuses.
By balancing betting action over both sides of a wager, it lowers a platform’s exposure to risk and ensures that revenues are reliable. It also encourages bettors to favor two sides of an outcome, which can help to drive up payouts that winners will benefit from. Lastly, it also prevents unscrupulous bettors from exploiting betting scams and impacting the integrity of the industry.
Can I Beat the Vig?
There is no way to get around paying the vig, but with some good research and strategy, you can take advantage of odds that have more favorable payouts. In turn, you will essentially be paying less vig at a sportsbook with more favorable odds than you would at a lesser competitor.
Another useful but difficult strategy is to arbitrage bet. This is when bettors exploit discrepancies at several sportsbooks to ensure a profit. If a profit is guaranteed from a wager, it could be seen as a way to win without being impacted by betting juice. However, these opportunities are scarce and cannot be solely relied on.
Vigs and Markets
Although the rate for juice in betting markets will remain roughly the same, particular markets are known to offer higher and lower vigs than average. In this section, we’ve identified some of the low-vig and high-vig markets. Keep in mind, though, that this is a generalized discussion and will not always apply.
Low Vig Markets
While there are no low vig sportsbook markets per se, you may find that there are certain sportsbooks that offer more favorable odds during major events to boost competition. As one of the busiest betting periods of the year, the March Madness basketball tournament requires operators to list favorable odds.
Another way that you can essentially lower the vig is by utilizing sportsbook promotions. These can include profit boosts and odds boosts, whereby wins can see your payouts enhanced. Bonus bets can also produce real money wins with little financial risk or sacrificing of real money to the vig.
High Vig Markets
Prop bets are known to be among the highest vig betting markets that can be wagered on. There are several reasons why this could be, with vigs tending to be higher on markets that sportsbooks consider to be volatile or unpredictable. Both UFC and MLB props can fall victim to high vigs.
Land-Based vs. Online Sportsbook Vigs
Generally speaking, online sportsbook odds tend to be more favorable to bettors than land-based odds. This is because retail sportsbooks must include higher vigs to cover the expenses of running their operations. Another reason is that visitors can’t compare and exploit odds differences as easily as online. Not to mention that it’s easier to register at a sportsbook online than to drive to a different betting location.
There are instances where there are exceptions to this, though. Namely, in states where there are only a few online sportsbooks to choose from it is less likely that the odds will be as competitive. They are more likely to be in line with retail sportsbooks on these occasions.
Helpful Tips About Vigs
While paying vigorish sports betting fees is unavoidable, there are several tips that you can follow to ensure that you get the most out of your real money wagers. The easiest is to always compare the odds of markets at different sportsbooks before you bet and exploit the best prices.
The better the odds, the lower the vig is likely to be. As you wager on more sports, you will likely get a grasp on what odds are normal for different bet types. With this understanding, you’ll be able to easily identify when a betting site’s vigs are lower or higher than usual.
Keep an eye out for promotions such as odds boosts or profit boosts as these will reduce the vig. It can be helpful to actively participate in loyalty schemes to unlock more perks. Finally, make peace with the necessity of vigs, and understand that these help operators provide good customer service and quality platforms.
FAQ
What does the vig mean in sports gambling?
The “vig” or “juice” are other terms to describe a sportsbook’s vigorish. This is the fee that is charged by sportsbooks to guarantee that they will earn a profit from a market, no matter the outcome. These often take into account the popularity of events, taxes, and other overhead costs.
What does the juice sportsbook fee mean in betting?
The juice betting fees is another term for the vigorish. The vig may be different from market to market, with player props being notorious for having higher vigs. The vig prices tend to hover at around 10%, but sportsbooks may lower them to ensure greater competition among other sportsbooks.
How do I calculate vigorish?
The easiest way to calculate a vig is by using a vigorish calculator. Here, you can enter the odds and your stake amount to determine how much is being taken by the sportsbook as a vig. We have also listed a formula to calculate this yourself but it can be a timely process.
Conclusion
This guide has strived to provide an in-depth analysis of the vig in sports betting and its importance in the industry. While you won’t be able to get out of paying the vig, you can exercise more awareness of odds prices to ensure that you’re getting the most profit out of your picks.
Meet the creators behind our content: a collaborative of seasoned professionals, each with their area of expertise. From analytical minds dissecting odds and legal counselors demystifying regulations to strategic players sharing their secrets, our team's diverse backgrounds enrich every piece of advice and insight we offer.
As you start to bet more frequently, you may notice that there are standard betting vig fees for your favorite markets, and this knowledge will help you going forward.