What Is A Sportsbook Bet
What is the vig in sports betting? Quite simply, the vig, vigorish, or juice, is the house edge. The word itself carries a bit of a negative connotation because it is also used to describe the usually high interest charged by loan sharks.
Even non-gamblers make moneyline bets. Betting the moneyline for a game is possibly the most simple way to wager on sports. Bettors just choose a player or team to win. If the bettor chooses the winning side, the sportsbook. Every Sportsbook charges a commission, which is a fee to process and handle your bet. In our example, the point total is set at 46. A bet on the over means that the FanDuel Favorites and Lovable Losers. You won’t find an online sportsbook with a minimum higher than $5.00. Note that minimum bet amount can vary depending on the time of year or specific event. Get Started Today! If you’re still trying to figure out how to best develop a sports betting. The early NFL betting lines are often set by industry leading sportsbooks, while many wait for the Vegas lines to be published and follow suit. These NFL odds can change.
The goal of every sportsbook is to set lines that draw an equal amount of action to either side of a bet. Once that happens, the sportsbook can earn the vig from the difference between what the losing side lays on the bet and how much the winning side is paid out.
That means, in a perfect world, online sportsbooks would have no interest in the outcome of the sporting events you bet on. They don’t have to sweat results and can rely solely on the vig to earn profits that most players agree the sportsbooks are entitled to. In actuality though, it is difficult getting the action evenly split across lines, which means the sportsbooks can lose money if the action is not balanced.
Read on for more on how it works, how sportsbooks use the vig to earn money, and how you can calculate vig yourself just by looking at the lines.
How do sportsbooks make money?
Sportsbooks earn money by collecting a commission on bets. This is the vig.
Most of the time, that vig is less than 5%. It’s an amount most gamblers are happy to part with in exchange for the service provided by the sportsbooks.
While sportsbooks don’t post the vig, it’s easy enough to calculate yourself using the odds. That’ll tell you when a sportsbook is getting out of line with the vig on a bet and help you avoid it.
How is the vig calculated?
Unfortunately, sportsbooks don’t post the vig on bets, so it’s not that easy to find. However, sportsbooks do post the odds, and the odds will ultimately tell you everything you need to know about the vig.
You just need to do a little math first.
The complete formula you can use to calculate vig yourself is:
(Favorite odds/(Favorite odds + 100) X 100) + (100/(Underdog odds + 100) X 100) – 100 = Vig
How to calculate the juice yourself
Of course, not every bet with only two possible outcomes pays the same odds on both sides as in the example above.
The moneyline for the same NFL opener described above might be Texans (+350) @ Chiefs (-460).
In this case, or any other where one side is a favorite over the other, you can calculate the vig yourself by converting the odds to implied probability.
What Is A Sportsbook Bet Casino
Then, you simply add the two probabilities together and compare that number to 100%. The difference is the vig.
You can convert negative moneyline odds for the favorite to a probability by extrapolating the figure and using it in the following formula:
Odds/(Odds + 100) X 100 = Probability
Therefore, at -460, sportsbooks are giving the Chiefs an 82.14% chance of winning (460/(460 + 100) X 100 = 82.14%)
You can convert positive moneyline odds for the underdog to a probability by extrapolating the figure and using it in the following formula:
100/(Odds + 100) X 100 = Probability
Therefore, at +350, sportsbooks are giving the Texans a 22.22% chance of winning (100/(350 + 100) X 100 = 22.22%)
Add 82.14% to 22.22% and you get 104.36%. The difference between 104.36% and 100% is 4.36%
That means the sportsbook is earning a 4.36% vig on the Texans @ Chiefs moneyline.
How does vig work?
Perhaps the best way to see how vig works in betting is to look at a simple example.
The Houston Texans are scheduled to visit the Kansas City Chiefs to open the NFL season.
Most sportsbooks have set the totals line for the game somewhere around O/U 54.5. That means you can bet either the total combined score at over or under that line of 54.5 points. At most sportsbooks, you’ll book the bet at -110 odds, whether you bet the over or the under.
The sportsbooks have set the line at a point where it should draw an equal amount of bets on the over and the under. If there is heavier betting on one side, a sportsbook will move the line to incentivize people to bet the other side until there is an equal amount of betting on both sides.
The -110 odds means whether you bet the under or over, you’ll have to lay down $110 to try to win $100, plus your bet back. For the purposes of this example, let’s say $110,000 is bet on each side for a total of $220,000 in wagers.
Remember, for a totals bet including a half-point, there are only two possible outcomes and only one side can win. For argument’s sake, let’s say the game ends 31-27 Chiefs, making for a total of 58 points. That means the over wins.
Since $110,000 was bet on the over at -110 odds over, bettors will be paid out $100,000 in winnings, plus the $110,000 originally bet, for a total of $210,000.
The sportsbooks will take the $110,000 bet on the over and return it to the winners. The other $100,000 will come from the $110,000 lost on under bets.
That leaves the sportsbooks with a $10,000 profit, meaning the vig earned on the $220,000 in totals bets for this game was $10,000.
Of course, $10,000 is approximately 4.5% of $220,000, meaning the sportsbooks earned a 4.5% vig on the bet.
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What’s the difference between vig and overround?
There really is no difference between vig and overround in gambling. Although the number might be expressed differently, both the vig and overround are how sportsbooks make money.
Whether you call it an overround or a vig, it is still the profit margin sportsbooks factor into the price, or odds, of any bet.
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Browsing through the terms and conditions of sportsbooks can be exhausting. Thankfully, we’ve read the fine print for you to tell you what to expect when you first log in to a new online sportsbook.
In this guide, we examine the most typical rules and requirements surrounding minimum deposit limits, and outline which deposit methods come with the easiest process and lowest fees. Additionally, we’ll take a look at minimum bet limits, a common restriction on how small a wager your online sportsbook will accept.
Minimum Deposit Amounts Depend on Your Funding Source
To start placing bets at your sportsbook of choice, you’ll first have to make a deposit. Minimum deposit amounts vary between books, but the required amount often also varies depending on the method used to make the deposit.
For most sports bettors, credit cards and eWallets are the most appealing option. They typically come with the lowest minimum deposit and the least amount of fees.
Money transfers, checks, and bank wires have the highest minimum deposits, as these are a greater hassle for sportsbooks to process and deal with. It is industry standard for banking methods to have the highest fees of any deposit method.
Minimum Deposit Via Credit Card
Credit cards are the most popular method of deposit. Minimum deposits with a credit card can range anywhere from $10-$100, but tend to fall on the lower end of this range.
American and European bettors can expect to encounter $10 minimums at the most popular online sportsbooks.
Sportsbooks strive to set a low minimum deposit for this method, given that it’s the most popular and convenient way for bettors to fund their accounts.
Minimum Deposits Via Bank or Money Transfer
If you use a bank wire or a money transfer to fund your betting account, you may have to lay down a lot of cash. Minimum deposits can be significantly higher for these methods, particularly if you’re unable to take advantage of an ACH or online bank transfer.
Minimum deposits can be as low as $10 for electronic transfers, but don’t be surprised if you’re asked to deposit significantly more when using more traditional wire services.
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Minimum Deposit Via eWallets
When we talk about eWallets, we’re referring to services like Paypal, Neteller, and Skrill. eWallets allow you to store multiple credit card or bank account numbers in a secure environment. Payments are much faster, and many are nearly instantaneous.
Best of all, some sportsbooks place no restrictions whatsoever on deposits made via eWallet services. That said, a $10 minimum remains standard at many online sportsbooks.
Note that you may also be required to use the same eWallet to make a withdrawal when the time comes.
The Smallest Bets You Can Make At Your Sportsbook
You might be surprised to hear this, but most sportsbooks allow you to make very small wagers. As long as you meet deposit requirements (and future withdrawal requirements), sportsbooks are happy to let you wager with tiny amounts of money.
We’ve seen online sportsbooks accept wagers as low as $0.01, but the majority place their minimums between $0.50 and $2.00. You won’t find an online sportsbook with a minimum higher than $5.00.
Note that minimum bet amount can vary depending on the time of year or specific event.
Get Started Today!
If you’re still trying to figure out how to best develop a sports betting strategy, we’re here to help. We’ve created an entire guide to the fundamentals of sports betting to help you get started.
If you’re trying to decide what method is right for you to finance your sportsbook account, check out our comprehensive guide to all things related to depositing and withdrawing from your sportsbook.