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Parcae
Glossary fundamentals

Vigorish (Vig)

In short: The margin a sportsbook charges, expressed as the difference between the combined implied probabilities of all outcomes and 100%. Standard retail vig is 4–6%; sharp books charge 2–3%; exchanges have no vig but charge commission.

Also known as: juice, margin, overround, hold

Vig is how sportsbooks make money. Add up the implied probabilities of all outcomes at a single book and you’ll get a total greater than 100% — the excess is the vig. To estimate the true probability of an outcome, you remove the vig by dividing each side’s implied probability by the combined total.