When diving into the world of sports betting, one term you’ll frequently encounter is “vig,” short for “vigorish.” Understanding this concept can help you make smarter bets. Here’s a simple breakdown of what vig is and how it affects your wagers.
What is Vig?
The vig is the bookmaker’s fee or commission for taking your bet. It’s how sportsbooks ensure they make a profit regardless of the outcome. Essentially, the vig is built into the odds offered by the bookmaker.
How Vig Works
- Odds Adjustment: Bookmakers adjust the odds so that regardless of the outcome, they retain a small margin.
- No Risk: By including vig, bookmakers mitigate their financial risk.
- Balanced Books: Vig helps maintain balanced books by encouraging equal betting on both sides.
Calculating Vig
To see how much vig you’re paying, you can use a simple formula. In a standard two-outcome bet:
- Convert American odds to decimal form.
- Add the decimals together.
- Divide each decimal by the total to get implied probabilities.
- The sum of these probabilities minus 1 is the vig percentage.
Understanding vig allows you to make more informed decisions and recognize the true cost of your bets. Happy betting!
