What is Vigorish

Both of these factors decide the fate of the sports betting business. Let's take a closer look at them.

Vigorish is another word for “winning” in Russia. In online gambling or sports betting, there are several names for the same. Juice, under juice, cut, margin, take, house edge, as well as vig, are some of the other names. Bettors use betting websites to place wagers. They use them to earn extra money. And for providing the services, betting sites charge them in the form of vigorish.

The vigorish majorly depends on the odds. Betting companies adjust the odds of betting to ensure they get their cut, no matter what the outcome is. The calculation of vigorish comprises mathematics. The mathematics that heavily involves probability. Every outcome comes with a certain probability and the sum of the probabilities of various outcomes should be 1.

But that's never the case. The sum of odds that are provided by the bookmakers is usually more than 1. Why? Because the excess probability is the vigorish that converts into the bookmaker’s margin (also known as over-round). The vigorish can range from 2% and can go over 20%. The real-time odds are adjusted to ensure the bookmaker gets the cut for their service.

Vigorish can be calculated in a simple two outcome event with an easy formula.

V=100& (1-(p*q)/(p+q))

In the above formula, V is vigorish, and p and q are the decimal payouts.