If you’re wondering what VIG or JUICE means in sports betting, don’t worry, this guide will provide a clear explanation…
VIG, short for vigorish, and its slang term “juice,” are critical concepts for understanding how sportsbooks operate and how they affect your potential profits. All sports bets, whether placed online or in a physical sportsbook, include a VIG. This fee ensures that sportsbooks make a profit over time, regardless of the outcomes of individual bets.
The Meaning of VIG in Sports Betting:
VIG refers to the commission that sportsbooks charge to facilitate betting. It’s their way of ensuring profitability, even if one side of a bet attracts more action than the other. For example, if you bet on an NBA game at -110 odds, you’d need to wager $110 to win $100. The $10 difference is the VIG.
Take a look at these odds on an NBA game:
Sportsbooks embed this fee into the odds they offer, which is why the odds you see often don’t reflect true 50/50 probabilities.
For instance, even odds (without VIG) would be 2.0 in decimal format or +100 in American odds. However, with the VIG, sportsbooks adjust these odds downward, such as to -110, effectively giving them a margin. It’s a huge value difference over the long term – which is why DraftKings stock market valuation is so high.
Why is the VIG Important to You?
If you want to make money from your sports bets long-term, you must bet at higher values than your bets are truly worth. This is betting at a positive expected value. Sportsbook odds ensure the complete opposite happens in most cases because the VIG makes each bet a negative expected value.
See that $10 margin on the bet in the image below?
Some sportsbooks might charge less while others might charge more, so it is important to conduct research to find a sportsbook that offers the best odds and the lowest juice or VIG. If you can beat the sportsbook’s VIG on your wagers, you’re more likely to win overall. However, the true power lies in beating the closing line value, as explained in a previous article.
Another way to make a profit from sports betting is by using tools such as Profit Duel and OddsJam. To learn more, you can read our review of Profit Duel.
How Do You Measure the VIG?
Accurately measuring a sportsbook’s margin on each bet is a difficult problem to solve. It’s effectively the answer to making huge profits. Even the sportsbooks get it wrong…
In all honesty, there are far simpler and easier ways to turn a profit. Comparing sportsbook odds for inconsistencies and mistakes is the easiest. You’ll even get software that does it for you.
Check out these comparisons here:
Measuring the different vigs isn’t something many sports bettors will seek to do. Maybe a handful of the world’s finest do it successfully. So unless you’re looking to be the next Bill Benter, it’s far easier if you focus on when prices change, by how much, where the VIG margins are lowest and compare them against each other for a profit!
How to Minimize the Impact of the VIG…
Reducing the impact of vig is crucial for improving your profitability. One effective strategy is to compare odds across multiple sportsbooks to find the best value. Some sportsbooks offer reduced juice, such as -105 odds instead of the standard -110, which can make a significant difference over time. Another option is to use betting exchanges, where you bet directly against other users and often avoid traditional VIG altogether. These platforms charge a small commission on net winnings rather than embedding margins in the odds…
VIG in Different Sports and Markets:
The size of the vig varies depending on the sport and market. For major sports like NFL and NBA, the vig is typically around 4-6% for point spreads and money lines. In niche sports or exotic markets, vig can climb as high as 10% or more due to lower liquidity and higher risk for the sportsbook. In horse racing, vig is embedded in pari-mutuel pools and can vary significantly depending on the race and track. Understanding these variations helps bettors focus their efforts on markets with lower vig, improving their chances of profitability.
How the VIG Relates to Positive Expected Value Betting
The key to overcoming the vig is to focus on positive expected value (EV+) betting. This involves identifying situations where the odds offered by the sportsbook undervalue the true probability of an outcome. For example, if you calculate that a team has a 55% chance of winning, the fair odds would be 1.82 in decimal format. If a sportsbook offers 1.91 odds, you’ve found a value bet with a positive expected value.
Consistently placing these bets can help you overcome the vig and achieve long-term profitability. If you can consistently bet at odds better than the market’s closing line, you’ll improve your chances of success despite the sportsbooks margin.
Alternative Strategies to Profit Despite the VIG
If calculating vig and finding value bets feels daunting, there are other strategies to profit in sports betting. Taking advantage of promotions and bonuses offered by sportsbooks can offset the vig and provide a short-term edge. For example, risk-free bets or deposit bonuses can reduce the effective vig on your wagers.
Live betting also presents opportunities to find value, as odds fluctuate dynamically during events. By reacting quickly to market changes, you can often find odds that don’t fully reflect the current state of play. Additionally, arbitrage betting, where you bet on all outcomes of an event across different sportsbooks to guarantee a profit, can help you bypass the vig entirely, though these opportunities are rare.
Conclusion: Understanding the VIG in Sports Betting
Understanding the vig and its impact on your sports bets is essential for long-term success. While the vig ensures sportsbooks remain profitable, savvy bettors can minimize its effect through strategies like shopping for the best odds, using betting tools, and focusing on positive expected value betting. Whether you’re just starting or aiming to refine your approach, knowledge of the vig is a powerful tool for making smarter bets.