If you’ve made a point spread wager, then you probably know that the odds are listed at 1:1. Which means with 1:1 odds if you make an $11 wager and win, you’d get back $22. But when you make an $11 wager on a football, hockey, baseball or basketball game and win, you don’t get $22. Instead, you receive $21. What happened to the other eight bits? It went to the bookmaker as a commission for brokering the bet.
In the world of sportsbooks, bookies, like any other businessmen, have to make money. One way they do it is by charging a commission on all bets that are placed. The commission is known by many names, including “vigorish,” “vig,” “juice,” and “the take.” The term vigorish is based on the Yiddish word “vyigrysh,” which means “winnings.”
Although it may be upsetting to some bettors that their 1:1 wager is actually a 1: 0.954 bet due to vig, those who wager on sporting events should actually embrace the concept. Vigorish helps keep the betting industry honest since whether a bet is won or lost, the bookies get their commissions, making a profit on each and every wager.
The Vig is collected on both winning and losing wagers as who actually pays it is debatable depending on how one looks at it. It’s part of every point spread and moneyline bet. The take is evident in point spread wagering, but it’s less apparent when playing the moneyline.
With moneyline wagers, the vig is added into the line. Here’s an example of a moneyline wager:
New England Patriots -230
Oakland Raiders +180
In the example above, the Pats are the favored club. In order to win $100 on New England, you’d have to wager $230. In fact, the cash you have to put down in order to win is inflated to cover the commission. The money line without vig would be New England -205, Oakland +205.
The same is true regarding the Raiders, but in reverse. If you put your money on the underdog Raiders, you’ll have to wager $100 to win $180. In this instance, the bookie has reduced the payoff by about $25 to cover the commission. Although the vigorish in the moneyline is hidden, it is there.
Of course, when you take into consideration winners and losers in this example, the power of vigorish is readily apparent. In our scenario if the Pats win and the books have balanced action on both sides, the bookie keeps $25 in vigorish from the New England bet and $100 from the Oakland wager. The bookie pays out $100 and makes a $25 profit. In essence, the $25 commission is collected when the bet is made and the payout to the Patriots’ bettor is only $90. The profit for the bookie is $10.
Lets give an example of a $100 bet on Oakland, and a $230 bet to win $100 on New England. If the Raiders win, that means that the winning gambler receives $180. Remember that the vig has been factored in. So instead of paying $230 on the $100 wager, the sportsbook gave back $180. That’s a $50 profit for the bookie. The bookmaker keeps the $230 wagered on the Pats and after paying out on the Raiders, they’re up $50. Upsets do payoff for sportsbooks.
Now in this example above with the two $100 bets if the Pats were to win they books would make nothing. They would be taking the $100 wager the Oakland bettor made to pay off the winning $100 win bet the New England bettor made. This is why bookies try to split the profit equally so that no matter who wins they collect a profit. Bookmakers do this by adjusting betting lines to attract equal amounts of wagers on both sides.
The fact is that vigorish is simply the price of doing business. It helps to keep the industry on the up and up, allows bookies to make a profit and ensures that action on both sides will pay. Just remember that there is no such thing as an even bet in the world of the sportsbook.
does this help?? I don't think the thread is stupid, it's obviously something a lot of people aren't sure about or disagree with. I thought that's what part of this forum was for, no?
Hot Forum Topics
