Vigorish Explained

How much is the vigorish and who pays it? Does everyone? Technically, no — not everyone pays vigorish, just the winner. Many bettors are under the impression that the vigorish (or “vig” as it is also known) comes from the loser’s share of the pot.

This is not quite true. Here we try to explain how the vig works. Plenty of other gambling articles have been on the subject as well, or related subjects.

In all sports bets there are two sides to a bet, a bank and a lay. In most standard bets, a bettor must risk (or lay) eleven dollars in order to win ten dollars. The bettor isn’t betting against the sportsbook, he is betting against another bettor who has taken the opposite side of the bet.

If he too has placed the standard bet, risking eleven dollars to win ten, then the sportsbook is holding a total of twenty-two dollars. When the game is over, the winner gets back the money he put in (eleven dollars), plus the loser’s ten dollars. The sportsbook keeps the extra dollar.

With online sportsbooks cutting overhead and reducing costs, the sportsbook may only keep fifty-cents instead of the dollar. It seems like the loser paid the sportsbook, but in reality, if the sportsbook hadn’t been there and both parties still bet eleven dollars, the winner would have gone home with twenty-two dollars. The winner sacrifices one dollar to the sportsbook.

If you for instance bet on football, the amount of vigorish you end up giving to the sportsbook depends on how much (or rather how often) you win.  If the loser would have gotten nothing in return for losing had the sportsbook not been involved, then the loser certainly got nothing when he was.

Any commission has to come from the winner — the winner pays the commission. If you always lose then you never pay commission and if you win, you may not realize that you are paying commission.

Ultimately, it doesn’t matter who “pays”. What matters is keeping track of the commission rates you are charged and making sure you are consistently getting the best rate possible.

Because of the proliferation of online sportsbooks, you are sure find a place that will give you a good bargain.

Many people begrudge the sportsbook his commission, feeling the bet should pay out more. What these bettors are forgetting is that the sportsbook is assuming the risk, making the event able to occur and maintaining the website or premises that enable the betting.

That is easily worth the small amount that a sportsbooks charges for his service! After all, you pay to watch a game too, right? Just like you pay the casino edge when you go to Vegas and revel in the casino games.

Sports betting is a growing culture and with every growth spurt comes a new crop of people that aren’t sure how things work. By nipping fallacies in the bud, other bettors can ensure that less confusion mars the games and leads to misunderstandings.

Be a smart bettor, keep updated on everything betting and the latest casino industry news!