So you’ve been reading up about sports betting, and you’ve come across touts spewing words like “vig” or “juice.” What do those mean? Well, the communicate something about the amount of money the sportsbooks are pocketing on each wager that you’ve placed — and it’s crucial to understand this to become a profitable sports bettor! You can check out more of our introductory betting content here.
What is the Vig (or Juice) in Sports Betting?
Sportsbooks are in the business of making a profit, and they do so by collecting a percentage of every wager placed. This percentage is known as the hold. The hold is typically expressed as a percentage, and it represents the sportsbook’s gross profit margin on all wagers placed.
On a two-sided market, the hold is often referred to as the “vig” or “vigorish”; colloquially, it is often referred to as the “juice.” The vig is typically around 10% of the wager amount and is collected from losing wagers. For example, if a bettor wagers enough to win $100 on a market with odds of -110, they would lose $110 due to the 9% vig charged by the sportsbook. The vig ensures that the sportsbook makes a profit regardless of the outcome of the event being wagered on.
Bettors must consider the vig when placing their bets because it affects the overall profitability of their wagers. If a bettor consistently bets on events with high vig, they will need to win a higher percentage of their wagers to turn a profit. For example, if a bettor consistently bets at a book with a 9% vig, they will need to win 52.4% of their wagers to break even, far more than a bettor who plays at a book that charges less.
To maximize their profits, bettors should seek out events with lower vig. This can be done by shopping around at different sportsbooks to find the best odds and vig, as well as by looking for opportunities to take advantage of promotions and bonuses offered by sportsbooks. By considering the vig and seeking out the best odds and promotions, bettors can increase their chances of making a profit in the long run.
While we hopefully answered the question about what is a vig in sports betting (or juice betting for you cool kids), this history of gambling in the United States goes back and helps to add context to terminology and general practices.
In 1992, the federal government ed the Professional and Amateur Sports Protection Act (PASPA), which prohibited sports betting in all states except for Nevada, which was grandfathered in due to its existing laws. However, in 2018, the US Supreme Court struck down PASPA, ruling that it violated states’ rights under the Constitution. This decision opened the door for states to legalize and regulate sports betting, and today, sports betting is legal in many states.
Overall, the history of betting in the US has been shaped by a complex interplay between legal, social, and moral factors. While some forms of betting have been widely accepted and even celebrated, others have been banned and stigmatized. Today, the legal landscape for betting continues to evolve, as states grapple with the question of how to balance the benefits and risks of various forms of gambling.
While the early stages of legal sports betting felt a bit like the wild west, as times has gone on and new states continue to legalize it, more regulations — varying from state-to-state — happen all the time. Nevertheless, something that will unlikely change is some of the historical terminology; such as what is a vig in sports betting and talking about juicing in betting.
