Alan Kendall joined Basketball Insiders in January, 2023 with over fifteen years of experience writing about online sports betting. He is an experienced writer with a strong interest in the NBA, NFL, NHL and UFC. Alan brings a wealth of knowledge to every piece he contributes to and has written for many publications including Augusta Free Press and The Sports Daily.
All posts by Alan KendallSports betting vig is an abbreviation of vigorish and is the name given to a ‘fee’ charged by every retail and online sportsbook per bet. It works in a similar way to a commission payment and is a method for the bookmaker to make money, regardless of whether a bettor wins or loses. The vig, also referred to as juice, is integrated into the odds for each betting line available.
To give you an idea of how vig works in sports betting, we use the simplest scenario in a betting market where there is a true 50/50 probability outcome such as a coin toss. Instead of seeing odds of +/-100, you will see -110 for both heads and tails. This means if you bet $110 on heads and your buddy bets $110 on tails, the sportsbook is taking $220 in wagers, but only paying out $210 to the winner ($110 wager + $100 profit). Therefore the sportsbook is keeping $10 regardless of who wins, or around 4.75%.
Although you are unable to see directly what the sportsbook is taking as their cut, you can use the next segment below to learn how to calculate the vig for every betting line and see what percentage is being added by the sportsbook before you place your next wager.
How is Vigorish Calculated?
The cost of sports betting vig can vary from market to market and from one sportsbook to another. However, you can calculate vigorish on every betting line whether you are wagering on the NBA, NCAA or other sport using a simple equation:
Outcome odds probability + Outcome odds probability – 100% = Vigorish.
Overall there are three steps to note. First, you need to convert the sportsbook odds into implied probability for every possible outcome (home-win, tie, away-win – 1×2), or use an odds-probability comparison table.
You then need to add the percentages together to get the total. The last step is to take away 100% from the total and the percentage you are left with is the vigorish.
To bring some perspective to the equation we can use a real sample NBA game between the Chicago Bulls vs Toronto Raptors, whereby the odds are set at +210 (32.26%) and -250 (71.43%) respectively.
Step 1: Convert odds to probability
The first step is to convert the odds to implied probability as suggested by the sportsbook.
+210 is 32.26%. -250 is 71.43%.
Step 2: Add percentages together
The second step is to add the values together to get the total percentage at play in every betting line.
32.26% + 71.43% = 103.69%.
Step 3: Subtract 100%
The third and final step is to subtract 100(%) from your total to see what value is remaining.
103.69% – 100% = 3.69%.
Therefore the vigorish is 3.69%.
As you can see in the above example, there are only two possible outcomes when placing a moneyline wager. But in a match-up or sport where there are three outcomes such as soccer, the calculation has one extra value but the equation is the same. For example:
In an EPL soccer game between Manchester City vs Leicester City where the implied probability is 84.5% and 8.8% respectively, and 11.3% for a tie, the equation is as follows:
84.5% + 8.8% + 11.3% – 100% = 4.6%.
Therefore the vigorish is 4.6%.
Is Vig the Same as Juice?
Sports betting vig is the same as juice and both terms are used to describe the same fee that is taken by sportsbook companies all over the world. In the sports community, juice is more of a slang term, whereas vigorish is the formal variant.
Other terms used when talking about the vig / juice include house edge, the cut, margin and take. Juice can also be combined with other words when describing scenarios in the betting world, such as disproportional juice or hidden juice.
Do All Sportsbooks Charge Vig?
All online sportsbooks across the globe from the USA to Europe charge vig, whether they are based online, on mobile (app) or at a retail location. Sports betting vig is an integral part of any operator site, even if they are based offshore in places like Costa Rica and Curacao. This is because it allows the operator to earn profit from punters regardless of who wins.
Source: Everygame.com In the USA, there are many retail sportsbooks situated in states where sports wagering is legal, all of which charge vig. This includes local sportsbook properties, racetracks and bars with sports betting facilities. In countries like the UK, there are hundreds of bookmakers located on high streets – these also charge vig. In fact, the only operators that do not charge vig are betting exchanges. However, these replace vig with a commission as a fee for facilitating the peer-to-peer platform that enables bettors to wager against each other.
See the next segment to get an idea of how much the sportsbook operators take from each betting market.
How Much Vig Do Betting Sites Charge?
The amount of sports betting vig can vary depending on the country, sport, event, bet type and operator. There are many factors that can affect the amount of juice that is taken from each and every wager that is placed, which ranges from 2%-10% on average.
In fact, part of the reason why vig exists is so that the sportsbook can balance the amount of money being wagered on each side of a game and to cover any costs. After all, the operator is in business to make money. So the more they charge in vig, the more profit they can guarantee week on week.
It’s worth bearing in mind that vig can fluctuate from initial betting lines, based on market activity, including the volume of bets from the public. Therefore, betting sites may charge more vig for sports that are more popular, such as basketball and soccer in order to meet demand and remain competitive.
How Vig Impacts Your Return
Whether you are placing a wager on a moneyline, point spread, total points, props or futures market, the sports betting vig can have an impact on your returns from successful bets and eat into your profit both short and long term. In simple terms, a 5% cut from a $200 potential return is $10, leaving you with $190 instead.
To put this into perspective, let’s use the coin toss scenario detailed earlier in this guide, which is also the same odds for the majority of spread and totals markets at -110. If a ton of money is wagered on a particular side, the odds may be adjusted to -115 and -105 on the other. This movement from -110 to -115 can be the difference between making $90.91 profit and $86.96 profit respectively on a $100 wager.
Similarly, if a particular sportsbook has a higher vig, the initial lines and odds may be released at -114 and -114 instead of -110 and -110, resulting in a potential profit difference of $3.19 per $100 wager. Take a look at the table below to see how the slight movement in odds can affect your returns and profit on a wager of $100.
Wager Odds Returns Profit $100 -105 $195.24 $95.24 $100 -110 $190.91 $90.91 $100 -112 $189.29 $89.29 $100 -114 $187.72 $87.72 $100 -118 $184.75 $84.75 Initially, it may seem like the impact of odds shifting from -110 to -114 is only small, but sports betting vig can quickly add up over the course of a season, particularly in sports where there are a high number of games on the schedule, such as the NBA. Multiply $3.19 by 82 basketball games and the total is $261.58 in additional profit you could have banked at the end of the season.
Of course, not all wagers are going to be successful, but even at a ratio where you land more bets than you lose, you can see how the amount of lost profit can quickly add up. This is even more apparent if you increase your stakes. View the impact of vig on a $1,000 wager at various odds in the list below:
- -130: $769.23 profit
- -120: $833.33 profit
- -110: $909.09 profit
- -105: $952.38 profit
- +100: $1000 profit.
Ultimately, the sports betting vig at sportsbooks chips away at your potential profit and reduces your ROI. You can limit the amount of lost profit using the tips in the next segment.
Tips to Minimize the Impact of Vig
At this point in our guide, you should no longer be asking yourself the question ‘what is sports betting vig’ and should be familiar with the principles of how and why it is present at every sportsbook. However, knowing what vig refers to is all well and good, but ultimately you want to ensure you’re making the most of every dollar you wager on your favorite sports teams and competitions. Use the tips below to maximize your returns and long-term profitability.
Use a Bet Calculator
Know exactly how much you should get in payouts and profit before you wager with a bet calculator. As part of your sports research, a bet calculator can give you vital information such as implied odds (probability), expected payout and total profit.
Shop Around
Source: Bovada.com There’s only so far loyalty can be stretched in the online betting world. With so many operators on the market, you can pick and choose where to bet whenever you wish to do so. If the sportsbook no longer meets your vig needs, then consider shopping around for new betting sites so that your dollars can go further.
Find a Proven Low-Vig Sportsbook
Bet with a low-vig sportsbook and you won’t have to worry too much about the implied odds veering away from the true odds. All of the offshore betting sites in our guides are known for having competitive vig compared with other regulated sportsbooks on the market.
Consider a Betting Exchange
Wagering at a betting exchange instead of a sportsbook is a sure-fire way to avoid paying vig on every bet you place. Although exchange operators charge a commission, it can sometimes be lower than the average vig. You can even combine the two to compare odds and value of each bet with and without the operator’s cut.
Compare Odds Regularly
Comparing odds used to be an extremely time-consuming task. However, you can easily compare sports odds from numerous sportsbooks at the same time using odds comparison charts and trackers. Doing so will give you a clear idea of the true odds vs implied odds, to see how much the vig is before you consider placing a wager.
Pay Attention to Public Betting
Part of many sports wagering strategies involves tracking public betting and opinion to see what is trending and where the money is going. However, it’s worth proceeding with caution due to the influence the public can have on odds, including negatively, especially during major global competitions such as the Super Bowl, World Cup in soccer and The Masters in golf
Use Multiple Sportsbooks
Creating multiple sportsbook accounts will allow you to seamlessly hop between betting sites so that you can pick and choose the best odds for a particular market. Vig can vary from one event to another and some brands may be more competitive than others for particular sports or bet types.
FAQs
What is the vig in sports betting?
Vig is the abbreviation of vigorish, also known as juice, and is considered a hidden fee charged by sportsbooks on every wager integrated into the odds.
What does 5% vig mean?
A 5% vig means the sportsbook will charge a 5% fee for taking the bet. The fee is automatically factored in to the odds of the betting line when you place your wager.
What is 10% vig?
10% vig is a ten-percent fee that the bettor pays the sportsbook for the convenience of being able to place a wager on a sporting event. The fee is included in the odds rather than a separate fixed-value.
What is three points above the vig?
Vig is measured as a percentage, with each 1% referred to as a 'point. Therefore three points above the vig is 3% on top of the baseline vigorish.
Is sports betting vig legal?
Vig is a completely legal method for sportsbook operators to earn guaranteed money on all sports wagers by integrating the juice into the odds.
How do you calculate sports betting vigorish?
You can easily calculate vigorish by adding up the implied probability percentages of each outcome and subtract 100%. The difference between the two numbers is the vig.
What's the vigorish in roulette games?
In European roulette, there's only a single zero, which results in a house edge of 2.7%. In American roulette, with both a single and double zero, the house edge doubles to 5.26%.
