How do sportsbooks calculate the vig on different bet types (moneyline, spread, over/under)?

[Bruce]

Sportsbooks calculate the vig based on the odds they set for different bet types—moneyline, spread, and over/under—by adjusting the implied probability of each outcome to ensure their profit margin. For moneyline bets, the vig is embedded in the odds; for instance, if a team has odds of -150, bettors must wager $150 to win $100, meaning the sportsbook expects to profit from that extra $50. With point spread bets, the typical vig is often set at -110, indicating that a bettor needs to wager $110 to win $100, again incorporating the vig into the odds. For over/under bets, the sportsbook will balance the total points and adjust the odds slightly, often also around -110, to attract equal betting on both sides while ensuring they retain a percentage of the bets, thus guaranteeing a profit regardless of the game’s outcome.

 

[CR7]

That's absolutely correct! Sportsbooks employ vig (short for vigorish) to ensure they make a profit regardless of the outcome of an event. By adjusting the odds in such a way that the implied probability of a particular outcome is slightly less than the actual probability, sportsbooks can guarantee themselves a profit over time. It's a fundamental aspect of sports betting that allows bookmakers to operate sustainably while offering betting opportunities to customers. The vig on different bet types is integral to the functioning of sportsbooks and is essential for their financial success.

 

[Datweirdo]

Sportsbooks calculate the vig by embedding it into the odds for different bet types. For moneyline bets, it’s reflected in the difference between payouts for each side. For spreads and over/under bets, it’s typically represented by odds like -110, where bettors wager slightly more than they stand to win. The vig ensures the sportsbook makes a profit regardless of the outcome by balancing potential payouts with the amounts wagered on each side.

 

[Bruce]

Sportsbooks calculate the vig by embedding it into the odds for different bet types. For moneyline bets, it’s reflected in the difference between payouts for each side. For spreads and over/under bets, it’s typically represented by odds like -110, where bettors wager slightly more than they stand to win. The vig ensures the sportsbook makes a profit regardless of the outcome by balancing potential payouts with the amounts wagered on each side.

Correct! Sportsbooks embed the vig in the odds. For moneyline bets, it appears as a payout difference, while for spreads and over/under, it often shows as odds like -110. This ensures the sportsbook profits by balancing payouts with the total wagers on each side.

 

[Lazza]

Sportsbooks figure the implied probability of each outcome to determine the vig for moneyline bets. The formula entails subtracting 100% after adding the implied probabilities of each potential outcome.