Vigorish

Vigorish, also known as "vig," "juice," or "margin," is the commission that a bookmaker takes from bets to ensure they make a profit regardless of the outcome. It is built into the odds and represents the bookmaker's edge over bettors.

In a 50/50 market, fair odds would be 2.00 (even money) on both sides. However, a bookmaker typically offers 1.91 (-110 in American odds) instead. The difference is the vig, ensuring that the bookmaker profits over time. For example, if Team A is 1.91 (-110) and Team B is 1.91 (-110), a €100 bet on either side wins only €91 instead of €100, meaning the bookmaker takes the remaining €9 as their commission.

The vigorish is calculated using the formula Vig = 1 - (1 / (Implied Probability (Side A) + Implied Probability (Side B))). The implied probability is determined by 1 / Decimal Odds x 100.

Higher vigorish means worse value for bettors because it reduces potential profits, while lower vigorish provides better odds. Some sharp sportsbooks offer reduced juice, such as 1.95 instead of 1.91, giving bettors a smaller disadvantage. Betting exchanges like Betfair do not apply vigorish in the same way as bookmakers but charge commission on winnings instead.

Sharp bettors focus on finding low-vig sportsbooks or value bets to counteract the bookmaker's edge.