What is Vig in Betting? – How to Calculate Sports Betting Vig

Vig (vigorish) is a type of commission charged by bookmakers to facilitate wagers, to ensure they make a profit regardless of the outcome. Our guide covers what is vig in betting in detail, tips and strategies for reducing it, and much more.

How Does the Vig Work in Betting?

Bookies factor their cut into betting odds before they are published. They have already calculated the vigorish meaning you don’t get to see it, but it’s always there. For this reason, no bet you place – even at the best offshore sportsbooks – will ever be at “true odds” of 100%.

Without the presence of vigorish, odds in pick ‘em NBA matchups are, correspondingly, likely to be +100 for both teams. This means that a $100 bet on the Boston Celtics or Dallas Mavericks would pay out $100 in profit. The sportsbook is offering a service by taking bets, however, and has ensured that they make a profit by changing the odds to -110 for both sides.

Betting sites that take “juice” are, in any case, adhering to standard practices by taking this commission. However, some may charge a higher margin on their betting odds than others. For this reason alone, understanding what is vigorish and how it works is vital to making informed betting decisions.

Ways to Calculate the Vig in Betting Odds

There are two main ways to work out vig odds – manually or using a calculator or online software. Overall, we recommend using vigorish calculators to do the hard work, much like when learning how matched betting works online. But only after you know how to calculate vig in sports betting manually.

The Formula for Calculating Vigorish

There are three steps to take in working out the vigorish sports betting sites take, starting firstly with finding the odds. When you know what the betting odds are, add them together. Then, the idea is to calculate the implied probabilities for both sides, with anything over 100% being the vig.

When using American odds, the presence of both plus and minus odds mean there are two formulas to use. One for betting odds beginning with a minus (-) and another for odds starting with a plus (+). Here are the vig betting calculations for both.

Minus Money Odds Formula

Using the example of the Boston Celtics vs. Dallas Mavericks game, we know that the sportsbook odds for both sides are -110 at this time. So, we can use the minus money odds formula to calculate what is vig in betting both outcomes.

• Boston to Win -115/(-115 + 100) x 100 = Implied Probability of 53.49%
• Dallas to Win -115/(-115 + 100) x 100 = Implied Probability of 53.49%

Adding 53.49% + 53.49% = 106.98%. 106.98 minus 100 comes out at 6.98 – so, if expressed as a percentage, the vigorish is 6.98%. However, this may be rounded up to 7% by the betting site.

Plus Money Odds Formula

Without reservation and barring serious error, you’ll never see plus money odds for both sides offered by an online bookie. Rather, you will commonly see one favorite (minus money) and one underdog (plus money). As such, working out what is vig in betting odds with a “+” by using this formula is crucial.

For the purpose of illustration, we’ll use an example featuring Milwaukee Brewers (+150) vs. Cincinnati Reds (-170). Remember, you must use the plus money formula for Milwaukee and the minus money formula for Cincinnati.

• Milwaukee to Win 100/ (+150 +100)/100 – Implied Probability of 40%
• Cincinnati to Win -170/(-170 + 100) x 100 – Implied Probability of 62.96%

To sum up, we get 102. 96% by adding 40% + 62.96%, meaning the surplus is 2.96% over 100. In reality, this makes the commission/vig charged by the sportsbook 2.96% (or 3% if rounded up).

Using Sports Betting Vig Calculators

We support anyone using free online vigorish calculators or software. It’s certainly beneficial to understand how to work things out manually. But you don’t need to do it every time if you have reliable and accurate software to do this for you.

How Sports Betting Vig Affects Payouts

If you’re placing bets at online sportsbooks, each wager is subject to vigorish betting commission of some kind. Furthermore, even when expected value betting opportunities have been identified. As such, it’s a good idea to compare odds across different betting sites to find the best prices for the markets you’re wagering on.

Moneylines

Bookies will always find it easier to apply vig to moneyline betting markets when there are only two outcomes. For example, in this hypothetical soccer match between Man Utd and Liverpool where we have reduced the 3 way betting market to which side wins when betting moneylines.

If you bet Liverpool, you get -200 which pays out $50 in potential profits. However, by comparing lines across other sites, you may find more suitable sports betting odds. For instance, Liverpool may be -170 elsewhere – combined with United’s lower price, there is less juice applied.

In arbitrage betting, for example, bettors aim to exploit favorable price differences in odds. But you can also find reduced vig opportunities simply by comparing prices and working out the commission charged by the bookie.

Spread Bets

The best sportsbooks seldom charge more than a 5% betting vig on spread bets. In this example, featuring the NFL’s Ravens and Chiefs, you can see how the bookie has factored in their cut to the lines prior to publishing them.

The vig here is pretty average at 4.34%. That’s certainly in line with what you can expect to find at reputable bookmakers. It must be remembered that not all sites will adhere to this and may take a little more for themselves.

Over/Under

Also known as totals bets, over/unders are popular markets offered by boxing betting sites and other top bookies. In the example below, meanwhile, we’ve worked out that oddsmakers have factored in a commission of 5.13% for betting lines to go over or under 10.5 rounds.

Vigorish definitions may change from bookie to bookie, but numbers don’t. Regardless of how the juice is framed, you don’t want to take odds that offer little value. Whether you are betting on Esports or anything else, this highlights the importance of comparing prices.

Futures

Although calculating the vig in sports betting futures may yield results, the juice can often – in this case, quite literally – not be worth the squeeze. Instead, it might be a better idea to try to identify more favorable prices for the bet you want to place.

In the example above, we’ve NFL conference futures and narrowed them down to the top five. Even though we have highlighted the implied probabilities across three different sportsbooks, the odds alone should be enough to make a solid pick.

Parlays

In the same fashion, Vig is also charged on parlay bets, where there are several legs combined into one wager. To that end, here’s an example of a multi-sport parlay that could be put together to claim a larger payout.

A point often overlooked when discussing vig meaning in parlays is that they carry considerable juice. This is mostly down to how the commission aggregates with each selection, which, on balance, means sportsbooks can often make a much higher margin on these bet types.

All things considered, the same idea applies to other combination bets like trixies in horse racing. Although these do not typically provide a bookie with as much commission as most parlays.

Props

It’s tough to isolate vigorish for props into a set range. While it may be true that betting on props compared to straights and other wagers can pay out big, they are undeniably difficult to get right in many cases.

Bookies love offering props around major events like the Super Bowl or Oscars. Or, in this case, who will be unmasked as the British “guerilla artist” known as Banksy to the public. The upswing from casual bettors on markets like these can, consequently, lead to considerable margins and profits for bookies.

Strategies & Tips for Reducing Vig in Sports Betting

You can make use of some trusted methods to reduce the vig meaning it’s always worth trying. Correspondingly, here are some expert tips that can help you get better prices and gains in the long run.

Conclusion

You should always be aware of the vig in sports betting. An active approach to reducing the bookie’s commission on bets can work in your favor in the long run. At the very least, it means you get a crack at the best odds which then translates to higher potential payouts.

FAQs

What is the vig in betting?

The vigorish is the fee charged by bookies to take a bet. Also known as the juice, it ensures that a bookmaker guarantees a profit for their services regardless of the outcome of a wager.

Why do sportsbooks charge the vig?

Sportsbooks, racebooks, and other online betting sites are, in a word, businesses. For that reason, these businesses aim to turn over a profit with each bet taken. In brief, almost none charge fees for joining or playing with them. Instead, they factor in a commission to each bet to ensure they generate a profit, regardless of the outcome.

How do I find reduced juice betting sites?

Read our reviews, shop around for the best lines, and then do some research! Experienced bettors wagering on a football game at -110 odds with one site, for instance, may look to increase their profit margins by identifying better odds. The best way of doing that is to find bookies that take less house edge or vig, thereby offering nicer prices.

Is vigorish in sports betting the same as commission?

Yes, in many senses it is. On the balance of things, the vig represents a commission or fee more than anything else. To this end, they take it on each bet to ensure their services have been rewarded. It is not too dissimilar to how other businesses charge for converting currency, or how others apply brokerage fees when dealing with sales of real estate.

How does a vigorish calculator work?

By working out what is vig in betting odds, a sports betting calculator can do much of the heavy lifting for you. In fact, calculators and other online vig software process odds for every potential outcome of an event to find the implied probability of each one. In sum, by combining all probabilities, it arrives at the vig which is expressed as a percentage.

What does vig mean in betting?

We covered the vigorish definition above – as stated previously, it’s a type of commission or house edge charged by bookies for taking bets. In an etymological sense, the word has roots in Yiddish. Furthermore, this is borrowed from the Russian word “vyigrysh” (выигрыш) which roughly translates to “profit” or “winnings.”