Definition:
Vigorish, commonly referred to as "vig" or "juice," represents the sportsbook's built-in advantage on a wager. It is the fee charged by the bookmaker for taking a bet, ensuring they gain profit regardless of the betting outcome.

Key Points:

1. Vigorish as a Percentage:
   The vigorish is typically expressed as a percentage. This percentage is what the sportsbook charges as their fee for accepting your bet. It is effectively the cost of doing business with the sportsbook.

2. Calculating Vigorish from Odds:
   To calculate the vigorish, you first need to convert the betting odds into implied probabilities. Implied probability is a conversion of betting odds into a percentage that indicates the likelihood of a particular outcome as estimated by the sportsbook.

• Formula for Implied Probability:
  For American odds, the calculation depends on whether the odds are positive or negative.some text
  • If the odds are positive: Implied Probability = 100 / (Odds + 100)
  • If the odds are negative: Implied Probability = (-Odds) / ((-Odds) + 100)

3. Calculating the Vigorish Percentage:
   Once you have the implied probabilities for all possible outcomes of an event, add them together. The total will usually come out to more than 100%. The amount over 100% is the vigorish.

• Example Calculation:
  • Suppose two boxers are fighting. Odds for Boxer A are +130 (implied probability = 100 / (130 + 100) ≈ 43.48%) and Boxer B are -150 (implied probability = 150 / (150 + 100) ≈ 60%).
  • Total Implied Probability = 43.48% + 60% = 103.48%
  • Vigorish = 103.48% - 100% = 3.48%

4. Understanding and Evaluating Bet Value:
   Recognizing how to calculate vigorish helps bettors evaluate the value of the wager. A lower vig means a lower cost to the bettor and potentially better value, assuming you have assessed the odds of the event correctly.

5. Strategic Betting with Vigorish in Mind:
   Smart bettors use knowledge of the vigorish to shop for the best lines. Different sportsbooks might offer different vigs on the same event, affecting the potential return on a winning bet.

Conclusion:‍

Understanding how to calculate vigorish is crucial for anyone looking to make informed and strategic bets. By considering the vigorish, bettors can better assess the fairness of the odds offered and make choices that optimize their expected returns.