Many of our readers have asked us “what does vig mean in betting?” We want you to be fully informed about the world of online betting here at BetWithout.Online so we have created this guide for you so that you fully understand what “vig” is, why it is used, and what impact it has on you as a gambler.
“Vig” is one of those terms you will come across when betting on sporting events (and possibly elsewhere). The concept is fairly simple to understand, however, it can be confusing at times knowing what it means exactly. Keep reading to know more about what “vig” means in online betting and how it affects your bet.
What is “vig” in betting?
“Vig” stands for “vigorish” in online betting. It is the commission expenses that bookmakers charge, usually as a percentage of stake, on losing bets. It is also known as “vulture’s cost” or “bookmaker’s take” and is used by bookmakers to cover their operating costs and profit. Sometimes the “vig” is called the “juice”.
Vigorish is the bookmakers’ commission on bets placed by sports bettors. It is the standard commission on losing bets that is charged by sportsbooks to cover their expenses and earn a profit. Betting exchanges that allow sports betting, such as Betfair, do not charge vigorish. However, sportsbooks that accept bets from individuals usually charge vigorish.
How much “vig” do bookmakers charge?
The vigorish, or VIG, charged by sportsbooks varies depending on the event and the bookmaker. It is usually between 2% and 10% of your total bet amount, no matter whether you win or lose the bet. However, the range of vigorish also can depend on where and how you bet.
For example, for in-person betting in a bookmakers’ shop will almost always charge less than if you’re betting online or over the phone. Let’s say you want to place a $100 bet on the Atlanta Falcons to win the Super Bowl at a sportsbook. You place the bet at -300 odds, which means you’re risking $100 to win $30. The vigorish would be $3 on that $100 bet, which is 3% of your total bet amount.
Why do bookmakers charge “vig”?
Bookmakers, like any other business, need to earn a profit. However, unlike other businesses, you have no choice but to use their services since betting is illegal in most jurisdictions and only available in a few countries.
Thus, the way to earn more money is by charging you vigorish. This is because bookmakers can’t predict who will win a sporting event, and they will lose on some individual matches. That’s why they must charge vigorish to make up for those losses so that they can stay in business and make a profit.
How does “vig” affect your bet?
Knowing what “vig” is, you probably have wondered if it affects your bet or not. Yes, it does! When you place a bet and lose, the vigorish is the amount you must pay to cover the lost amount of the bookie. This means that the amount you win is not the total amount you wagered. Instead, the vigorish is already added to your winnings.
For example, let’s say you place a $100 bet on the Falcons to win the Super Bowl and they lose. The vigorish is $3 on that $100 bet which means the amount you’ll pay the bookie is $103. You won $30 on your bet, but the $103 total amount you owe the bookie is what you get as an outcome.
Difference between “vig” and odds shaking
“Vig” (vigorish) and odds shaking are very different in online betting. Vigorish is the commission charged by bookmakers, usually as a percentage of your total bet amount, on losing bets. On the other hand, odds shaking is the amount you need to add to the original line or sportsbook odds to get a fair bet.
That’s why you must use a calculator to determine the correct amount, as you can’t just add the odds shaking amount to the odds to get the new total. So, vigorish is the amount you must give the sportsbook to cover your bets, while odds shaking is the amount you need to add to the sportsbook odds to get the fairest bet.
You will pay a “vig” with casinos too
Online sportsbooks are not alone in charging a “vig” for your betting. It is common to find a “vig” applied in online casinos as well. The charging of a “vig” at an online casino can be a complex process. Usually, it is not applied to all of the games that you can place a wager on at an online casino.
For example, a lot of casinos apply a tax of 5% if a gambler chooses to place a bet on the hand held by the banker in baccarat. At the end of the day, this is basically a “vig”. The purpose is to help with restoring the edge that the house has and ensuring the long-term profitability of the casino.
If you like to play American roulette where there is a “double zero”, it is likely that the casino will charge a “vig” so that any winning bets placed on double zero will not be truly “evens” (1/1). The idea is that the casino will have a small edge on any bets placed on double zero.
Final words
Online betting has made it easy for anyone to bet on sporting events, games, and championships. It is a great way to earn extra money while having fun at the same time. However, you need to be aware that “vig” (vigorish) is charged by sportsbooks when you place a losing bet.
You can’t win without paying the vigorish amount as it is already added to your bet. That’s why it is important to know what “vig” means in betting and how it affects your bet. Casinos often have a “vig” for certain games as well.
