In our previous article on positive expected value, we briefly mentioned the term “Vig.” Today, let’s take a closer look at what vig is and how it works.
What is the Vig?
In the world of sports betting, the bookmaker’s vig (Vig, or Vigorish) is a crucial concept that impacts a bettor’s profitability. The vig is also known as the “juice,” “cut,” or “margin,” and it represents the fee that bookmakers charge in the betting market to ensure they remain profitable in the long run.
For example, in an evenly matched game, the true winning probability for both sides might be 50/50. However, bookmakers typically do not offer completely fair odds (+100 vs. +100). Instead, they might set the odds at -110 vs. -110, meaning a bettor must wager $110 to win $100. The extra $10 is the bookmaker’s vig, which guarantees them a profit even if the betting action is evenly split on both sides.
How to Calculate the Vig?
To understand how much vig a sportsbook is charging, we first need to convert American odds into implied probabilities. The formulas for these conversions are:
- For Decimal Odds:
Implied Probability = (1 / Odds) × 100% - For negative American odds:
Implied Probability = | Odds | ÷ ( | Odds | + 100) x 100 - For positive American odds:
Implied Probability = 100 ÷ (Odds + 100) x 100
After converting the odds into implied probabilities, the total probability should ideally sum to 100%. However, in most cases, it will be slightly over 100% due to the vig. The difference above 100% represents the vig percentage that the sportsbook is charging.
The final calculation to determine the vig is:
Vig = (Total Implied Probability – 100)
Finding the Best Odds Platform: Vig Calculation Across Different Betting Platforms
To illustrate how the vig operates in the sports betting market, let’s use the La Liga match on 2/17 between Rayo Vallecano and Barcelona as an example and calculate the vig for three different bookmakers.
Using the formulas above, we convert the odds into implied probabilities and calculate the vig for each sportsbook:
1XBET
- Barcelona win: 1 / 1.242 * 100 = 80.49%
- Draw: 1 / 7.6 * 100 = 13.16%
- Rayo Vallecano win: 1 / 12.6 * 100 = 7.94%
- Total Implied Probability: 80.49 + 13.16 + 7.94 = 101.59%
Vig: 101.59 – 100 = 1.59%
Sportbet.io
- Barcelona win: 435 / (435 + 100) * 100 = 81.30%
- Draw: 100 / (660 + 100) * 100 = 13.16%
- Rayo Vallecano win: 100 / (900 + 100) * 100 = 10.00%
- Total Implied Probability: 81.30 + 13.16 + 10.00 = 104.46%
Vig: 104.46 – 100 = 4.46%
BETUS
- Barcelona win: 480 / (480 + 100) * 100 = 82.75%
- Draw: 100 / (650 + 100) * 100 = 13.33%
- Rayo Vallecano win: 100 / (1000 + 100) * 100 = 9.09%
- Total Implied Probability: 82.75 + 13.33 + 9.09 = 105.17%
Vig: 105.17 – 100 = 5.17%
Conclusion: Which Sportsbook Offers the Best Odds?
From our calculations, we see that 1xbet has the lowest vig (1.59%), followed by Sportbet.io (4.46%), and BETUS has the highest vig (5.17%). This means that 1xbet offers the most favorable odds for bettors since it takes the least commission from the wagers.
Understanding and calculating the vig is an essential skill for sports bettors who want to maximize their returns. By comparing different sportsbooks and choosing the one with the lowest vig, bettors can reduce the impact of the bookmaker’s commission and improve their profitability over time.
If you want to understand the relationship between vig and expected value, you can refer to this article: “How to Use the Positive Expected Value (EV) Concept to Improve Your Sports Betting Success?”
2025-02-17