Unusual, But Good To Know

File this one under the “so that’s what they are talking about” file. By now, you may know at least something about the most often used terms in the sports betting or gambling world. But, let’s step it up a notch, let’s get to the heart of the matter.

First up. Have you ever heard or used the word “vigorish”? Old time gamblers most certainly have heard the term and may even know what it’s all about. New comers? Maybe not so much.

What is vigorish and what does that have to do with the price of tea in China? Technically, the word refers to the bookie’s piece of the pie. You know, the amount charged by the bookmaker as a fee for taking the bet. It is this fee that allows the bookmaker to stay in business.

It works something like this. Understand that the bookmaker need to minimize their risk. In order to do so, they don’t normally want to have an interest in any one side or the other winning at any given event. Actually, what they want most of all is fairly equal betting on both outcomes of the game. Consider, by “playing” both sides of the table, the bookmaker is more likely to minimize his risk and come out ahead.

Minimizing the risk this way and at the same time collecting a small commission on both sides of the game allows the bookmaker to stay in business and keep providing betting services to his market. Understand that a necessary part of this process involves the bookmaker adjusting the odds either up or down. Is this making any sense? Take a look at the easy to follow example and it will all become clear to you.

Assume there are two sports betting patrons that each wants to take opposite positions with respect to the outcome of an upcoming sporting event. Since both of these sports betting fans go to the same bookmaker it plays out as follows. Suppose that each wanted to risk $100 for their outcome. Now the bookmaker has to factor in his commission or fee. So, in effect, each would have to put risk $110 for the possibility to win $100. (Assuming the bookmaker set the odds as -110). That extra $10 is the vigorish.

The losing bettor simply loses $110. The winning better, on the other hand. wins back his $110 outlay plus an additional $100 for a total of $210. From the perspective of the sportsbook, remember there is already $220 collected. The bookmaker pays out the $210 to the winner and keeps the $10 as his fee, or vigorish.

Got it now? Now you know the inside story on vigorish.

Top Online Sportsbooks