What is the VIG in betting

VIG, or Vigorish, is a percentage that shows the bookies’ commission on a sporting event. Οtherwise, known as edge or juice in North America, it’s essentially the bookmaker’s profit margin. Analyzing that amount, you will learn the sure profit of a bookie regardless of the outcome, using the mathematical formula [1 - {1 / (1/Outcome A Odds + 1/Outcome B Odds + 1/Outcome C Odds)}] x 100 (i.e., for 3-way markets). If you want to avoid complicated maths, you can instantly use our VIG Calculator to see each market’s implied probability and commission.

Suppose you want to bet on the “Full-Time Result” market on the Barcelona vs. Bayern Munich match for the Champions League. The WDW odds are 3.30 (23/10) - 4.00 (3/1) - 2.00 (1/1). Using the tool, you can determine that the Vigorish is 5,3%; please note that’s an average commission among betting sites. Read on to find out what the VIG is, the difference between the offered prices and the fair odds, as well as all the ways you should follow to avoid it.

Vig Calculator


Odds Implied Probability

What is the VIG formula

Risk Management Icons - Download Free Vector Icons | Noun ProjectThe VIG percentage differs among bookies depending on the betting site, sport, and type of market. Asian bookmakers tend to charge a lower commission, between 2%-4%, while international betting sites set average margins from 5% to 10%. There is a mathematical VIG formula for calculating the percentage; now, we imprint that type using the odds from the Barcelona vs. Bayern Munich match.

VIG = [1 - {1 / (1/Outcome 1 Odds + 1/Outcome X Odds + 1/Outcome 2 Odds)}] x 100 = [1 - {1 / (1/Barcelona Odds + 1/Draw Odds + 1/Bayern Munich Odds)}] x 100 = [1 - {1 / (1/3.30 + 1/4.00 + 1/2.00)}] x 100 = [1 - {1 / (0.30 + 0.25 + 0.5)}] x 100 = {1 - (1/1.053)} x 100 = (1 - 0.947) x 100 = 0.053 x 100 = 5,3%.

👉 That means if you place a WDW bet on these prices, your payout will be 100% - VIG = 100% - 5,3% = 94,7%, as you can check using our Odds Payout Calculator. In general, the payout demonstrates the percentage that bookmakers pay back to bettors from all possible outcomes of sports events, while the VIG is their profit.

How to use our VIG Calculator

A successful bettor should constantly evaluate the odds before wagering. Αn effective method is to use our Bet Calculators and see how much you have to bet to win €100, for example. Calculating the VIG is a safe way to understand where the value is. Let’s break down the example above.

✔️ Bet on Barcelona: 100 / Barcelona Odds = 100 / 3.30 = €30.3.
❌ Bet on draw: 100 / Draw Odds = 100 / 4.00 = €25.
✔️ Bet on Bayern Munich: 100 / Bayern Munich Odds = 100 / 2.00 = €50.

So, seeking to win €100, you should bet on the 1X2 market €30.3 + €25 + €50 = €105.3. If you place three wagers on all possible outcomes, your loss will be €5.30. That amount of money is the commission converted with the VIG formula into 5,3%.

Using our VIG Calculator, you can avoid all the maths and receive the instant information you need before placing a bet. So, follow the steps below:

⏩ Set all the possible outcomes of the event you want to bet on (e.g., 2-way, 3-way markets, etc.).

⏩ Add the odds for each one of them.

⏩ Choose the odds format you want to work out among all six odds types.

⏩ Tap the “Calculate” button, receiving the VIG percentage of your bet and the possible outcomes’ implied probability.

⏩ Tapping the “Reset” button, you can repeat the process for your next wager.

How to calculate Vigorish for each market

Τhe same mathematical VIG formula applies to 2-way markets or sporting events with several potential outcomes like horse racing. You should only adjust the number of fractions to find the commission for 2-way markets or eight, for instance, if you place a bet on a race with eight participants. Let’s take an example from NFL Week 2 and the opening game between the Washington Football Team and the New York Giants. The moneyline odds are 1.58 for the home team to win and 2.50 for the visitors. Using the VIG Calculator, you can conclude that the bookmaker’s commission is 3,29%, lower than a 3-way market’s margin.

How to calculate the VIG on fractional & American odds

Decimal, fractionals, and American odds express the chance of an outcome happening, so the VIG is the same for a set of prices in each type. Decimals reflect the total earnings you will have as returns if you place a winning bet plus your stake. Fractionals show the profit you can secure compared to your stake if you place a winner, and Americans express two possibilities. The positive (+) odds show how much you will receive on a €100 initial stake, while the negatives (-) how much you should wager to win €100.

Why calculate Vigorish market hold

If you want to compare odds by the bookies’ commission, the main thing you should do is to evaluate the market hold. That number expresses the VIG percentage among different bookmakers, choosing the best price for each outcome. Using the NFL example above, we will present a simple way to calculate and compare margins with our tool. Now, you can check the differentiation of odds in the underneath table.

Outcomes A Bookmaker B Bookmaker C Bookmaker D Bookmaker
NY Giants +150 +155 +160 +147
WAS Football Team -172 -180 -190 -185

In order to find the market hold for these prices, you should add the highest odds for the Giants (i.e., +160) and the best price for Washington (i.e., -172). The VIG percentage, or the hold, across these different bookies is 1,71%. If you bet on bookie A, the Vigorish you will pay is 3,25%, as we have calculated above. Signing up at bookie A and C, you can bet on higher prices paying approximately half VIG (i.e., 1,71% vs. 3,25%) either you place a Giants bet at +160 odds or a Washington one at -172.

Fair Odds: How to remove the VIG

Converting the Vigorish to implied probability helps you understand how often you need to win on average to break even. Using the Barcelona vs. Bayern Munich example, the probabilities’ cumulation is greater than 100%. The reason, as we explained, is the VIG. To remove it, learning what the fair odds are, you should divide each implied odds by the overall VIG percentage of the WDW market (i.e., 105,3%). For decimal odds, use the mathematical formula (1/Payout Percentage) x 100 = Implied Odds to complete the conversion for each outcome.

✔️ Barcelona: (1/3.30) x 100 = 0.303 x 100 = 30,3%.
❌ Draw: (1/4.00) x 100 = 0.25 x 100 = 25%.
✔️ Bayern Munich: (1/2.00) x 100 = 0.50 x 100 = 50%.

The probability of those three possible outcomes is 30,3% + 25% = 50% = 105,3%, so to remove the VIG, you should divide all the implied odds by the overall percentage of the market using the mathematical formula (Implied Probability/Overall Percentage Market) x 100 = No VIG Probability.

✔️ Barcelona: (30.3/105.3) x 100 = 0.288 x 100 = 28,8%.
❌ Draw: (25/105.3) x 100 = 0.238 x 100 = 23,8%.
✔️ Bayern Munich: (50/105.3) x 100 = 0.474 x 100 = 47,4%.

Cumulating the No VIG probabilities, the result is 28,8% + 23,8% + 47,4% = 100%; the margin has been removed, and now you can make the final step to calculate the fair odds of the Champions League match. That procedure takes only a few seconds with our Odds Converter in all odds types. Doing the maths manually, you should follow the formula 1/(No Vig Probability/100) = Decimal Odds.

✔️ Bet on Barcelona: 1/(28.8/100) = 1/0.288 = 3.47.
❌ Bet on draw: 1/(23.8/100) = 1/0.238 = 4.20.
✔️ Bet on Bayern Munich: 1/(47.4/100) = 1/0.474 = 2.11.

You can check the difference between the offered prices and the higher No VIG odds of the match on decimals in the underneath table.

Outcomes Offered Odds No VIG Odds
Barcelona 3.30 3.47
Draw 4.00 4.20
Bayern Munich 2.00 2.11

How to use betting offers to avoid the VIG

As you can comprehend from the examples above, the No VIG odds reflect the real possibilities for an outcome to happen. A few leading bookmakers offer odds with 0% VIG in several elite matches every weekend, mainly for the WDW in football. Their primary target is to attract bettors who are chasing fair odds.

Firstly, you should make a betting account and place a WDW bet on one of the selected matches. Using our VIG Calculator, you can check, for example, the difference between fixed and No VIG odds for the Internazionale vs. Real Madrid for the Champions League, Matchday 1, in the table below.

Outcomes Fixed Odds No VIG Odds
Internazionale 2.42 2.51
Draw 3.50 3.74
Real Madrid 2.85 2.99

The only thing you should undoubtedly check betting on No VIG prices is that almost every bookmaker that releases fair odds doesn’t allow bettors to combine the offer with other promos. So, it’s impossible to place a bet with a 0% margin and qualify for the 2-goal early payout offer if the team you have backed takes a 2-0 lead.

How to beat the Vigorish

Betting on politicsThe most important thing to remember is to avoid betting on big ACCAs; it’s far more preferable to place singles. When you wager on multiple events, you not only multiply your potential earnings but the VIG as well. It’s also crucial to carefully monitor any odds changes and know that bookmakers don’t offer the same market prices. The Vigorish Calculator is the tool that will help you make the right decisions. It has an instructive role even for more experienced bettors because it helps them understand where they invest their money and which prices (e.g., mainly the high ones) include less margin. Last but not least, you should always check where you can claim No VIG odds; it’s rare and concerns specific markers, like moneylines, but betting on fair prices is undoubtedly profitable and can make the difference in your bankroll.

Bookmakers with low VIG

In the list below, you can discover all the reliable online bookmakers that offer the best odds and low commissions in all markets of elite sports events.

FAQ
Q: What is the VIG definition?

Vigorish is the fee amount charged by a bookmaker for accepting a bet. The word’s origin probably comes from Russian “Vyigrysh” or Ukrainian “Vygrash,” where local bettors use this term to define the winnings.

Q: Are there other words for VIG?

There are several ways to describe the vigorish. English bookies prefer to cut the word down to VIG, while Americans use the verbal terms “juice,” “cut,” or “take.” In bookie slang language, there are different words, including the “shark’s loan,” “margin,” “commission,” “edge,” and “percentage.”

Q: Why does the VIG in betting exist?

VIG betting is a term used to describe the bookmakers’ commission on every placed bet. It isn’t a specific type of wager or a particular strategy. It’s essential to secure the bookies’ profit and explains how the odds change before an event starts.

Q: What is the importance of VIG betting?

The higher the Vigorish, the lower your profits. That is often ignored by players who occasionally get lured by high odds on risky markets. The rates and yields play a significant role in accomplishing long-term earnings and should always be considered before placing a bet.

Q: What is the difference between payout and VIG?

The payout percentage reflects a bettors’ ratio returns on all possible outcomes of a sporting event, while the VIG is the bookies’ commission. If you cumulate the implied odds and percentages of all probable results of a sporting event, you should find a percentage between 100% and 110% that includes the bettors’ payout and the VIG.

Q: How do odds changing affect the Vigorish?

Bookmakers have different ways of adjusting the odds. Depending on how much money every outcome attracts, some start changing the odds after the first placed bets. They will consequently lower the odds on the specific outcome to make it less attractive to players and will instead raise odds on the others in order to balance the total amount of bets. Every change has an immediate effect on the VIG.

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