What is Vig?

Vig Explained

Vig, vigorish or juice is the commission the sportsbook charges to facilitate the placing of bets and to ensure that it makes money on each wager. The bookmaker achieves this by offering odds that are lower than those reflecting the real probability of an outcome. In other words, if the real odds for a bet are 2.00, the bookie might offer 1.90. The vig is the difference between the real odds and the prices the bookmaker gives you for a particular market. 

Let's explain this in more detail. Let's say you are betting on the match between PSG and Real Sociedad and placing a bet on the moneyline market. The odds are as follows:

• PSG 1.65
• Draw 4.15
• Real Sociedad 5.15

The odds you see in the example above are adjusted with the vig calculated in them. But how much is the vig for this moneyline market? You can check by trying to win $100 from a budget of $100 by betting on all outcomes:

• PSG 100/1.65 = 60,6
• Draw 100/4.15 = 24.1
• Real Sociedad 100/5.15 = 19.4

The combined implied probability of the three potential outcomes in this 3-way market is 104.1 (60.6 + 24.1 + 19.4). So, to win $100, you need to bet $104.1. In other words, the vig or bookmaker's commission for this moneyline market is 4.1%. Most top online sportsbooks have vigorish ranging from 3% to 5%.

As you can see, regardless of the result, the bookmaker will always have an advantage over bettors because of the vig. That's why the vig is also referred to as house edge, as it is a way for the betting site to have an edge over bettors.

Vig Sports Betting Examples - How is Vig Calculated

Before you join online sportsbooks or place your bets, we strongly recommend that you calculate the vigorish for the market you want to wager on. The lower the vig, the better your potential winnings. Here's how you can calculate the house edge of a sports betting line.

You first have to find out the implied probability of all of the possible outcomes in a market. Then add them together and subtract 100 from that number. That will give you the sports betting site's vig for that line. For example, if you are wagering on the NBA game between the Miami Heat (-2.5) and the Orlando Magic (+2.5), these are the point spread odds you will get

• Miami Heat (-2.5) 1.95
• Orlando Magic (+2.5) 1.90

Those odds may seem enticing, but they come with the vig calculated in them. Let's see how high that house edge is by following the simple formula mentioned above. Let's first determine the implied probability:

• Miami Heat 100/1.95 = 51.3
• Orlando Magic 100/1.90 = 52.6

The combined implied probability of the two outcomes in this 2-way market is 103.9 (51.3 + 52.6). To get the vig, subtract 100 (103.9 - 100) and you will get 3.9. In other words, the bookie has a 3.9% house edge on the point spread market.

So, if you are trying to cover all outcomes and win regardless of the result, you should bet $51.3 on Miami winning and $52.6 on Orlando triumphing. Whichever bet wins, you will get the same payout of $100. However, you will have spent $103.9. That's how the online sportsbook ensures it has an edge on all bets you place.

Conclusion

Online betting sites put a commission or interest in their sportsbook odds. The goal is to ensure they work as any other business - with a profit margin. So, your goal is to find reliable sportsbooks that utilize a small house edge. And that's where we come in. At Betpack, we review and compare sports betting sites to help you find bookmakers that not only have the best odds but also work with bettor-friendly payment methods, offer enticing bonuses and provide you with round-the-clock support. If you don't want to spend hours searching for a good value betting site, check out some of the top bookies we shortlist. You are guaranteed to get great value for money.