Gambling terms, explained straight

In poker, vigorish sometimes refers to a time charge or rake, not a margin on odds.

Sports Betting

Vigorish betting

Vigorish betting is any wager priced with a bookmaker's built-in margin, so the odds include the bookmaker's expected profit rather than reflecting true probabilities.

Also called
vig, juice, house edge, cut, margin, take, under-juice
Applies to
Sports betting, fixed-odds betting, parimutuel betting 23
How it works
Bookmaker sets odds so implied probabilities sum above 100%; the excess is the margin 24.
Formula (two outcomes)
v = 100(1 − pq/(p+q)) where p and q are decimal payouts 1.

Key points

  • The bookmaker's margin means the odds offered are worse than the true chance of an outcome, guaranteeing the house a long-term profit 2.
  • Vigorish is expressed as the overround — the sum of implied probabilities above 100% — which varies by book and market 24.
  • In parimutuel betting, the vig is the commission deducted from the total pool before payouts are calculated 3.
  • The exact vig percentage is not fixed; it depends on the sport, the market, and the bookmaker's pricing model 2.

Vigorish in common bet types

How the vig appears in different sports-betting markets.
Bet type Typical vig range
Moneyline (two-way)3–5%
Point spread4.5–5%
Totals (over/under)4.5–5%
Parlay10–40% depending on legs

Where this term is used

Not the same as

  • Live betting — live betting is a timing format where odds change during an event; vigorish is the bookmaker's margin inside the pricing, whether the bet is pre-match or in-play

Sources

  1. Vigorish en.wikipedia.org Provides the definition, formula, and alternative names for vigorish.
  2. Mathematics of bookmaking en.wikipedia.org Explains how the overround and margin work in bookmaker pricing.
  3. Parimutuel betting - Wikipedia en.wikipedia.org Covers the use of vigorish in parimutuel betting.
  4. Full article: Estimating expected loss rates in betting markets tandfonline.com Supports the concept of the overround as the bookmaker's margin.

Sources are drawn from regulators, universities and published research, and each one is labelled with what it actually is — a preprint is not called a paper. Bookmaker and affiliate pages are never cited here, because a page that sells betting is not a neutral authority on it.