Sports Betting: Juice/Vig Explained?

What is Juice

Juice and Vigorish or "Vig" are popular terms when it comes to placing sports bets online. Every sportsbook will charge a vig to ensure the site does not lose money in the long run. Charging juice is how they accomplish this. An online sportsbook will take a cut of every wager that is placed on the platform. The vig will also have a direct influence on odds, so removing it, or learning how to lower juice is the key to success. Bettors will win and lose when placing wagers online, but having the vig in place guarantees the sportsbook will always win, regardless of the outcome of any event. Here, we take a look at how juice works and how bettors can improve profits by taking steps to lower the vig.

❓How does it work?
✍️How to Calculate Juice
📈How Vig Can Impact Profits
💡Strategies

How Does it Work?

When considering juice, it is important to know that it is part of the odds for any wager that is placed at a sportsbook. The amount can vary per site. In some cases, the amount that is being charged will not be apparent. Take a look at how juice/vig works to get a better understanding of this before placing any real money sports wagers.

As bettors start to wager on certain games or events, the odds will begin to shift. The sportsbook will change the odds in order to create balance to avoid massive payouts on either side. If many people are placing bets on the same outcome, the odds will be adjusted so that bettors find the opposite outcome appealing.

It is also possible for the vig to be based on event or game popularity and the competition between sportsbooks. Let’s say that multiple sites are offering odds for an event. Each site may try to undercut the vig to attract more bettors. This is very common when betting on the Super Bowl and March Madness where there is often a large number of new bettors.

How to Calculate Juice

To be successful when betting online, it is important to learn how to calculate the vig at a certain sportsbook. There are online betting tools that can be used that will automatically do this or it can be done manually. When betting on sports, odds represent the probability of an outcome. The first thing to do is to convert the listed odds into implied probability. This refers to the overall chance of the outcome related to the odds.

If the odds are negative, take the listed negative odds and divide it by the negative odds plus 100 and then multiply that by 100.
For positive odds, take 100 and divide it by the positive odds plus 100 and then multiply by 100.

Let’s say the odds of a team winning a game are -110. The vig would be determined by taking 110, dividing it by 110 plus 100, and then multiplying by 100. The end result would be 52.4. If the same odds are for the other side, add the two together. In this case, the result is 104.8%. This means that the juice or vig for the sportsbook is 4.8.

How Vig Can Impact Profits

When sportsbooks add juice to the odds, it raises the point of breaking even, which can make it more difficult for profits to be generated from bets that are placed. This means that even winning half of the sports bets that are placed will not result in more money.

However, if the vig did not exist, those wins would be a break-even point. In short, winning more than 50% of the bets would mean there would be profits. At most sportsbooks, the standard vig when placing bets Is -110. If this is the case, 52.38% of all bets placed must win to start earning profits.

Strategies for Mitigating Juice Impact

In order to make a profit when placing any bets online, it is important to know how to reduce the juice. This can make a very big difference in the amount of money that is won.

For example, say a bettor went 70-60 when placing NFL spread bets. That ends up being almost 54%, which is not too bad. Based on the juice at the sportsbook, the profits will alter. With no juice, the profit would be $1000. With -105, it lowers to $667. If the juice is -110 or -115, profits are further reduced to $364 and $87. Even with a great betting record, profits can be minimized when the juice is high.

Helpful Tips

If an underdog is closer to the favorite bet in terms of odds, this is a good chance to take. If a bet with a favorite soars above the underdog, take a step away as this means the sportsbook is probably charging more vig.
Keeping track of market movements will also be beneficial in reducing vig. By staying informed on the changing odds, bettors will have insight as to how others are betting. Anticipating line movements is a great strategy to use. This can help to secure favorable odds before they are adjusted.
If a sportsbook offers a no-juice promo, take advantage of it. Some sites will offer these bonuses with 50/50 wagers at +100.
It may be better to avoid parlay bets. Many sportsbooks will charge more for parlay bets and they get large profits.

The Bottom Line

It is important to understand how juice works and how sportsbooks alter odds to ensure they also make profits. Always consider the juice before placing any bets. Experienced bettors can shop for lines at various sportsbooks to find the best value. These betting sites are operating businesses and they need to generate some profits from bets being placed. However, when a site has the juice set too high, it can drastically cut into profits earned by winning wagers. Take time to try to lower juice and find a reputable betting site that is known for offering the best possible value on all bets.

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