Vig, short for vigorish and also referred to as juice, is the built-in commission a sportsbook charges to accept and process wagers.
How Vig Shapes Betting Markets
Sportsbooks generate revenue by adjusting market prices so the total implied probability across all outcomes exceeds one hundred percent. On a standard two-way point spread with balanced action, odds are frequently set at -110 on both sides. In this scenario, a bettor must risk $110 to win $100 in profit. When balanced amounts are wagered on both teams, the operator pays out winning tickets using the losing stakes while retaining the leftover margin as compensation for managing the market.
Evaluating this commission structure determines the baseline win rate required to sustain profitability over time. Higher margins require bettors to win a greater percentage of selections simply to break even.
- Standard -110 lines require a 52.38 percent win rate to break even.
- Reduced juice lines at -105 require a 51.22 percent break-even win rate.
- Higher juice markets at -120 push the necessary win rate to 54.55 percent.
Comparing Vig and Hold Percentage
While vig and hold are related concepts, they measure bookmaker margins from different operational perspectives. Vig represents the theoretical price markup built into the published odds before any bets are placed. In contrast, hold percentage reflects the actual cash revenue the sportsbook keeps relative to the total volume handled after events conclude. A bookmaker may price a line with five percent theoretical vig, but unexpected bet distribution or outcome volatility can cause the realized hold percentage on that event to finish higher or lower than the theoretical margin.