What is The Vig in Gambling and How Does it Effect Your Betting Wins?
The Vig in Betting: What You Need to Know
- The vig comes from the Russian word vyigrysh and refers to the commission charged by a sports book on all bets.
- The vig is also known as the juice, cut, edge, or rake. In casinos, it also known as the house edge.
- The term ‘vig’ has also entered popular culture as the periodic payment owed to a loan shark.
- Knowing what the vig is for each sportsbook and how to calculate the vig is important to understanding how much money you stand to make on any bet.
Vig – short for vigorish – refers to the house edge that is built into every sports bet. It’s essentially a small commission that ensures the sportsbook makes money no matter the outcome of the bet. Understanding how gambling vig works is essential for making sports bets because it impacts the long-term success of your wagers.
Origin and Meaning of Vig in Gambling
Vigorish, vig, juice, cut, edge, rake; no matter what you call it, they all mean the same thing. The vig gambling term is thought to be derived from the Russian word “vyigrysh”, which means “gain” or “winnings”. According to the Oxford English Dictionary, its earliest known appearance in print was in the 1960s.
The shortened “vig” can also refer to the interest owed to a loan shark. Picture this: I borrow money from Big Tony and forget to pay back the vig. The next thing I know, he’s threatening to break my knees. Unsurprisingly, this usage was popularized by the Italian-American Mafia.
How to Calculate the Vig
Every sportsbook bet already has the vig embedded in the odds. If you’re a casual bettor, online gambling for a bit of fun, there’s no need for you to calculate the vig, especially if you’re choosing your sportsbook based on how much you like the site instead of the quality of the odds.
However, if you’re a seasoned sports wagerer who is betting for long-term profit, calculating the gambling vig can help you make informed betting choices and (hopefully) increase your overall profit. The vig can vary between sportsbooks, so it’s good practice to compare sites and opt for the lowest edge.
Below is a formula that you can use to calculate the vig yourself.
- (Favorite odds / (Favorite odds + 100) x 100) + (100 / (Underdog odds + 100) x 100) – 100
The Vig in Online Gambling
The vig looks different at an online sportsbook compared to a casino. At a casino, it’s hidden away within the game’s RTP. You’ll need to open up and scroll through the paytable to find the RTP amount. As discussed above, the sportsbook vig is a little more obvious, as it’s embedded in the odds of every bet.
There’s not much difference between the vig at online sportsbooks/casinos and brick-and-mortar sportsbooks/casinos. Just like their digital counterparts, retail sportsbooks will build the vig into the odds. Similarly, every brick-and-mortar slot machine arrives at the casino with a built-in RTP percentage, while games like American Roulette and Caribbean Stud also have a predetermined RTP.
Image credit: Kitreel/Shutterstock
Types of Vig in Gambling
Spread Betting Vig
A spread bet is the difference in the predicted points between two teams. The favorite is represented by a minus number, and has to score more than the spread for your bet to win. Meanwhile, the underdog has a plus and must lose within this number of points or win. Spreads on games like baseball often have a decimal (0.5) to avoid pushes, as many baseball games end with less than two runs between the teams.
Spread bets differ from over/unders as they focus on the difference in points between the two teams rather than predicting if the total number of points scored will be above or below the specified threshold. The spread bet vig is built into the odds, which typically range from -120 to +100. It’s important to remember that the odds and the spread are two separate entities.
Moneyline Vig
A moneyline is a bet on the result of the game. Since there is only one possible outcome – a win or a loss – they are one of the most straightforward sports bets available. Like all other bet types, the moneyline vig is built into the odds.
Though moneyline bets are perhaps the most simple, research has proven that they can also be the most efficient and prosperous. Since you’re wagering on a pretty black-or-white outcome, odds for moneyline bets – which already have the vig included – can be crazy, with some underdogs reaching into the thousands.
Sportsbook Vig
Every sportsbook bet incorporates a vig. The vig, to both the sportsbook and its bettors, is the most important part of the operation. It can determine whether or not you can sustain a long-term profit, and it ensures that the sportsbook doesn’t lose money when bettors win big.
Casino Vig
It’s very unlikely that you’ll come across the term “vig” at an online casino. Instead, casinos use the phrase “house edge” to describe the advantage that the house has over the bettor. Unlike a sportsbook vig, which is determined by the sportsbook itself, the house edge is already built into the game by the software developer.
Every game has a house edge, whether you’re playing slots, blackjack, or roulette. Most casino players are familiar with the Return to Player (RTP) percentage, which is the theoretical amount the casino will return to players over thousands of slot spins or game rounds. The RTP reflects the player’s perspective on how much they may win back, and the house edge is the remaining percentage. For example, if I select a game with a 95% RTP, then the house edge is 5%.
Image credit: New Africa/Shutterstock
Impact of Vig on Gambling
Not all sportsbooks will apply the same vig to the same bet; you’ll often find a noticeable difference between sites. That’s why it’s important to understand exactly how big of an impact vig can have on your bet. Don’t take it for granted that you’ll earn the same amount from every sportsbook!
The vig is a consequential factor to consider if you’re betting with a strategy. Let’s take a look at how different vigs can impact a $100 wager.
- +100 odds = $100 potential profit
- -105 odds = $95.24 potential profit
- -110 odds = $90.91 potential profit
- -115 odds = $86.98 potential profit
- -120 odds = $83.33 potential profit
- -125 odds = $80 potential profit
Strategies to Mitigate the Vig
Unfortunately, you can’t escape the vig. Just like you pay for goods in a shop, you’ve got to pay the sportsbook for the pleasure of using its platform. Ultimately, players must accept that it’s an inherent and unavoidable part of sports betting.
That said, there are some strategies you can implement that might help you lower the financial impact of the vig.
- Compare lines across sportsbooks. For example, let’s say I see two sportsbooks offering the same bet, but one has +115 odds, and the other has +120. I’ll get $5 more for betting with the second sportsbook if my $100 bet pays out. Though it’s only five bucks, these little differences can have a big impact over time.
- Look for reduced vig. Sportsbooks often run reduced vig promotions during popular games to draw bettors away from their competitors. Seeking out these reduced vig offers can lessen the sportsbook’s cut of your wager.
- Improve your win rate. This one sounds like a no-brainer, and obviously, it’s impossible to guarantee a win every time. But by improving your win rate – even on smaller bets with only a few cents or dollars of profit – you will end up at the stage where you’re beating the vig.
- Claim a bonus. Beyond reduced vig, most sportsbooks, like online casinos, offer a range of promotions like bonus bets, odds boosts, bet insurance, and more. Claiming a bonus will allow you to try bigger bets and score bigger wins. They’ll also give beginners the opportunity to try wagering and understand the vig before spending real cash.
Unlocking the Vig: How It Shapes the Dynamics of Gambling
All in all, vig is a very significant part of the gambling landscape. Looming over your shoulder like Monday morning on a Sunday night, the vig is an unwanted but inescapable part of your sportsbook experience. You can’t run, you can’t hide – the vig will always be there.
Therefore, it’s essential to implement a few tactics to keep its impact to a minimum. Comparing lines across different sportsbooks, searching for reduced vig offers, and keeping your eye out for sportsbook promotions will help mitigate the vig in the long run. Hopefully, this page has cleared up the big question of what does vig mean in gambling.
Title Image credit: Wpaddington/Shutterstock
