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What is vig in sports betting?- All you need to know (Beginners’ Guide)
You may have heard of the vig (or one of its other terms such as the juice or the vigorish) when you have been gambling online, but not fully understand what it is or how its size can impact your bets. Equally, this might be the first time you have heard the term and you just want some more understanding about it. Either way, this article will describe to you exactly what it is and how it affects you. Put simply, the vig will have a part to play every time you place a wager so having some understanding of it will help your long term gambling. Below should provide everything you need for an introduction to this subject so read on to gain a fuller knowledge of what this term means and how it works.
What is Vig?
The vig can be seen as a fee or commission that is charged by online sportsbook operators. It ensures that the book turns a profit no matter how a game's result finishes. This also means it has a direct impact on the potential profit for punters.
Why does Vig matter?
The vig may seem like it is a small percentage out of the total when factored into bookmakers' odds and payouts. However, even a small percentage can add up over time and operators with a lower vig will be better for you to play at than those that have this built into them at a higher rate. If you know how to calculate the vig at a site then you can take this into consideration when choosing where to place your wagers, and it will help you find the bookmakers that can offer you the best value as a punter.
Is vig the same as “juice”?
Yes, you can see the juice and the vig as pretty much the same for sports betting purposes. These terms are both used in the world of sports betting so you will likely hear them both mentioned. Every bet a sportsbook offers will have the juice or vig factored in as we have mentioned this means it plays a part in your overall potential profits.
Is vig the same as “margin”?
Yep, same again, the vig and the margin are again the same thing. The margin can be defined in the same way as its other terms, the fee taken by a bookmaker when they accept your wager.
Why do bookmakers charge vig?
How much Vig do bookmakers charge?
The amount of vig a bookmaker will charge can vary somewhat and how much is charged will play a major part in how fair the bookmaker is seen as by punters. There are a few factors that need to be considered, including both the size of a bookmaker and the total money that is being gambled on an event, or if the odds have been boosted. A good vig percentage within the typical market value is around the 2-5% mark. 5-7% is seen as high vig and above that a bet starts to lose its value for the bettor.
| Vig Charged | Market Value |
|---|---|
| 2% up to 5% | Typical market vig - good value |
| 5% up to 7% | High Vig |
| 7% and over | Poor value bet |
How to calculate the Vig being charged?
Calculating the vig is not an easy process and it is not always obvious what the amount is even when you can see the bookmaker's odds. However, by using a simple example like below, using American odds of -110 on both sides, we can see what the vig works out as in this case.
- Both sides of a bet have -110 odds.
- Bettor 1 wagers -110 on Side A, while bettor 2 wagers -110 on Side B.
- This adds up to a total of -220 wagered.
- The winning bettor will take home 210. (110 gambled and £100 profit).
- The cut for the bookmaker is 10.
- To work out the vig it is how much paid out (210) divided by the cut (10).
- So the vig = 210 / 10 = 0.476.
- This is represented as a percentage, 4.76% which we have seen would represent typical market value.
Of course this is a simple example and as odds for spreads and totals move so will the price you pay to make a wager. If numbers drop lower (for example to -108) you would pay less and potentially get greater returns. Equally let’s say the odds go the opposite way (for example to -114) the bet price increases and to gain the 100 return we mentioned you would need to punt more than the 100 we have discussed here.
Can you reduce the Vig?
Reducing the vig is possible but to do this you will need to shop around for the best odds on a sporting event. To find the lowest vig commissions, you just need to compare the odds over a number of different sportsbooks to discover which have the best lines on the event.
Remember to always gamble responsibly
Conclusion
So let’s think about what we have learned. Firstly, the vig is present in all your bets and cannot be avoided. We cannot always work out its exact amount easily. As a punter it is best to shop around to keep the vig low and we should be aiming for sites that restrict the vig to under 5% for the best value. The bookmakers will always look for an edge, and as they are profit-making companies, they have to include a vig amount in all their bets and odds. We as gamblers can find ways around this but we need to be smart in our betting whilst doing this responsibly and having fun while doing it. Understanding the vig is a big part of making your long term sports betting more profitable so you have taken a good step reading this article. Hopefully it has covered your main queries. Check our FAQ’s below for some further details.
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The term Vigorish originates from the early 20th century, thought to be from Yiddish or the Russian vyigrysh, which means ‘gain, or winnings’.
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The vig is also sometimes called: the cut, the house edge, juice, the margin, the take, or the under-juice. Most of these terms are interchangeable with the vig.
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No, the vig will differ in terms of different casino games; these differ wildly for games like roulette and baccarat as the amount of outcomes vary. Casino vig works as a sum of all possible outcomes and you will need to read our article on vig for casinos to fully understand them better.
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Reacting quickly to market changes can help you get yourself ahead of the bookies in certain situations. Sometimes wildly fluctuating odds in live sporting events can offer you odds that do not reflect the true state of play.
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Arbitrage betting opportunities are where you have managed to back all outcomes of an event at a guaranteed profit. While these are rare they are an example of a betting situation where you do not need to worry about what vig is being charged by a particular sportsbook.
