What is the vig in gambling? You might have heard it used by other names, such as vigorish, juice, under-juice, the cut, the take, the margin, and the house edge. The term is mostly used in sports betting, but we, at our online casino, know the value of learning a little more about everything. And once you learn more about the vig meaning betting becomes easier.
Vig is simply a small percentage that a bookmaker charges on diverse games regarding its bet lines. Understanding how this works is crucial, as it can significantly impact your earnings.
In today’s casino news, we answer the question: What is the vig in gambling? We discuss its calculation and see if and how it affects your betting outcomes.
How is the Vig in Gambling Relevant to You?
Vig is a short form for the word vigorish. It is a small cut that a betting house charges you for processing your bet. Also popularly known as juice, a vig is one of the many ways bookmakers generate profit and pay the overhead costs of running the business.
Vigs can be likened to the house edge on popular casino games like blackjack, roulette, baccarat, etc. They both function to ensure the house always profits, no matter the game’s outcome.
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Plus, if you have any questions regarding how to bet at casino games, we also have a great casino guide section for you to peruse.
Here’s How the Vig Betting Term Is Calculated
There are different types of wagers in sporting betting. We have points spread, money line, middle bets, prop bets, etc. All of these bets have different vigs. However, we will use the point spread for this illustration as it is the most common.
The standard vig for spread betting is -110 for both the underdog and the favorite team. The vig charged is $0.10 for each team. This means that for every $1 wager you make on a game, $0.10 will be deducted and used by the house. If a bettor wagers $1 and wins, the customer will take home $1.90, including the initial wager amount.
Now, if you make a $100 wager on a game and win, you get back $200 ($100 from the initial wager plus $100 profit). However, your payout will be $190. The house will keep $10 as the vig on your initial bet. You can wager $110 to get a $100 profit; in this manner, your total payout will be $200 since the sportsbooks keep the extra $10 on the initial bet.
Note: The vig paid is low when the odds are low, like -108. If the odds are high, you pay more vig to get the bigger payout.
How Is the Vig Calculated?
Vigs calculations can be a tad confusing, but we’re here to help. For a standard vig sports betting line with odds of -110, the vig is 4.77%.
The standard formula to help you calculate the vig is: (Favorite odds/(Favorite odds + 100) x 100) + (100/(Underdog odds + 100) x 100) – 100 = Vig
Remember that most odds on games come in negative numbers, such as -110, -120, or -130.
When using a vig calculator, it is best to remove the minus “-” sign before inserting each value in the formula.
Here’s a fictional odds scenario for a game involving two NFL teams.
New Orleans Saints: +145
Detroit Lions: -160
Inserting these values into the formula, you will get something like this (remember to remove the minus sign to make things easier):
(160/(160 + 100) x 100) + (100/(145 + 100) x 100) – 100 = 2.35%.
The vig on any point spread wager you make on this game is 2.35%.
Vigs range in percentage depending on the games involved, and these charges on wagers are collected by the house whether you win or lose your bets.
The Hidden Cost of Betting: Does The Vig Affect Your Bet?
The straight answer is YES. Every wager you make will be affected by the vig of the games involved, even though you’re not calculating it.
As a regular gambler, you may only care a little about this since the only thing on your mind is placing your bet and hoping for a good outcome. But for the more seasoned gamblers in the house who like to take things more seriously, knowing what the vig is for each sportsbook can help them maximize their profit. Can you write off gambling losses? Yes, if betting is your profession, but remember: terms and conditions also apply.
Remember that you have to be 21, which is the gambling age, to be able to place a bet.
How To Navigate the Vig in Gambling for Better Outcomes
Although there are no ways to cheat the process completely, you can learn to create better outcomes. So how do you go about doing this?
Actively Search for Low Vigs
Go for bookies with comparatively lower vigs or juice. This will give you the upper hand.
Weigh the Odds
Also, tiny differences in favorite and underdog odds can mean a lot when collecting your payout, especially if you wager large amounts. You may want to up your stake when you notice these small differences.
Take Advantage of Promos
Use the promos for your benefit. Sometimes sports bookies may drop odds from, let’s say, -115 to -110. You can use this to lower the vig of games.
Don’t Over Pay
Following established gambling terms to win big is important, but don’t pay more than the standard vig of 4.7- 4.8%. Instead, seek to lower it using odds boosts and bonus bets, to reduce the impact of vigs.
Parting Shot
What is the vig in gambling? Vig is a small percentage that a bookmaker charges on bet lines. Vig is an integral part of sporting betting. Without them, bookmakers can’t make any profit. If you take betting as your profession, understanding this and how to navigate it can help you aim for bigger wins.
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