Why the Vig Matters in Sports Betting

The vig (short for vigorish) is the fee sportsbooks take on bets, and it’s a big deal. It directly impacts your payouts and determines how many bets you need to win just to break even. For example, at standard -110 odds, you need to win 52.4% of your bets to avoid losing money. Over time, the vig adds up, especially in multi-leg parlays, where potential winnings can drop by over 20% due to compounding fees.

Here’s the bottom line:

What is the Vig? It’s the sportsbook’s commission, built into the odds (e.g., -110 instead of +100).
How Does It Affect You? It reduces payouts, increases the break-even win rate, and cuts into long-term profits.
How to Minimize It? Use no-vig platforms like BettorEdge or peer-to-peer betting to keep more of your winnings.

Quick Comparison of Betting Options:

Betting Type	Break-Even Win Rate	Long-Term Profitability
Traditional Sportsbook (-110 odds)	52.4%	Lower
No-Vig Platform (Even odds)	50.0%	Higher
Peer-to-Peer Betting	50.0%	Higher

Understanding and reducing the vig can make a huge difference in your betting success. Platforms without vig, like BettorEdge, offer better odds, lower fees, and higher chances of profitability.

What Makes Up the Vig

Definition of Vig

The vig, short for vigorish, is the fee sportsbooks include in bets. It's essentially their commission and influences how odds are set.

How Sportsbooks Add Vig to Odds

Sportsbooks incorporate the vig directly into the betting lines by tweaking the odds. For instance, in a typical point spread bet, instead of offering even money (+100) on both sides, they usually set the odds at -110. This means you’d need to risk $110 to win $100.

Here’s an example:

Bet Outcome	Amount Risked	Potential Win	Profit
Win at -110	$110.00	$100.00	$10.00
Loss at -110	$110.00	$0.00	$110.00

This adjustment ensures that the vig is consistently applied across various bets.

Common Vig Percentages

Odds like -110 create a standard fee structure in sports betting. For example, -110 odds reflect a vig of about 4.57%. To break even, bettors need to win more than 52.4% of their bets.

How Vig Affects Parlay Payouts

5-Leg Parlay Without Vig

Let’s break down a 5-leg parlay with even money (+100) odds and no commission fees. In this example, a bettor starts with $100 and reinvests their winnings after each leg:

Leg	Stake	Odds	Potential Win	Running Total
1	$100.00	+100	$200.00	$200.00
2	$200.00	+100	$400.00	$400.00
3	$400.00	+100	$800.00	$800.00
4	$800.00	+100	$1,600.00	$1,600.00
5	$1,600.00	+100	$3,200.00	$3,100.00*

*Final payout reflects total winnings minus the initial $100 stake.

In this no-vig scenario, a $100 bet on a successful 5-leg parlay generates $3,100 in profit, thanks to the power of compounding.

5-Leg Parlay With Vig

Now, let’s see how things change when standard -110 odds are applied. These odds include a 4.57% fee (vig) on each leg:

Leg	Stake	Odds	Potential Win	Running Total
1	$100.00	-110	$190.91	$190.91
2	$190.91	-110	$364.46	$364.46
3	$364.46	-110	$695.80	$695.80
4	$695.80	-110	$1,328.36	$1,328.36
5	$1,328.36	-110	$2,535.97	$2,435.97*

*Final payout reflects total winnings minus the initial $100 stake.

Here, the compounded effect of the vig reduces the final payout to $2,435.97 - $664.03 less than the no-vig scenario.

Total Fee Calculation

To quantify the impact of the vig, we can calculate the percentage reduction:

1 - (Payout with vig / Payout without vig)1 - ($2,435.97 / $3,100.00) = 21.42%

While the vig on a single -110 line is just 4.57%, its compounding effect across multiple legs slashes potential winnings by 21.42%. This demonstrates how fees can significantly cut into returns, especially in multi-leg parlays.

What Is Vig In Sports Betting? | Vigorish Explained

Vig's Effect on Long-Term Results

The vig (short for vigorish) plays a crucial role in shaping long-term betting outcomes, especially when it comes to profitability.

Required Win Rate

The vig increases the win rate needed to break even. For example, at -110 odds, bettors need to win more than 52.4% of their bets to avoid losing money. This higher threshold can be a tough challenge, particularly for casual bettors who might not account for it.

Here’s a breakdown of outcomes over 100 bets of $100 each at -110 odds:

Win Rate	Wins	Profit per Win	Losses	Loss per Loss	Net Profit/Loss
50%	50	$90.91	50	$100	–$454.50
Break Even (~52.4%)	52.4	$90.91	47.6	$100	~$0
55%	55	$90.91	45	$100	+$500.05

Expected Value Changes

The vig reduces the expected value (EV) of each bet. Without a vig, a 50/50 bet would have an EV of $0. However, with a typical 4.57% vig, the EV drops to approximately –$4.57 per $100 wagered. Over time, this adds up. For instance, placing 1,000 bets of $100 each at -110 odds could lead to an expected loss of about $4,570 - purely due to the vig. Lowering or eliminating the vig can significantly improve these outcomes.

Finding Better Odds

Peer-to-peer betting platforms offer a way to sidestep the vig entirely. These platforms match bettors directly, removing the house’s built-in advantage. Services like BettorEdge provide no-vig options, allowing bettors to focus on their strategies and predictions. By cutting out the vig, skilled bettors can save money over time and improve their chances of turning a profit.

No-Vig Betting on BettorEdge

Market-Based Odds

BettorEdge changes the game in sports betting by removing the traditional vig through its peer-to-peer marketplace. Instead of betting against a sportsbook that takes a cut, users wager directly with one another at prices set by the market. Research shows that users of betting exchanges are 20 times more likely to turn a profit compared to those using traditional sportsbooks. With over $100 million in market orders and more than 1 million bets placed, BettorEdge is clearly meeting the growing appetite for commission-free betting.

Better Win Potential

Getting rid of the vig means bettors have a better shot at winning. Here's an example to illustrate:

Bet Type	Traditional (-110 odds)	No-Vig (Even odds)	Difference
$100 Bet Win	$90.91	$100	+$9.09
Break-Even Rate	52.4%	50%	-2.4%
Profit on 55% Win Rate (100 bets)	$500.05	$1,000	+$499.95

Without the house edge, bettors keep more of their winnings. This approach has drawn over 30,000 active users to the platform.

BettorEdge isn't just about better odds - it also creates a lively, social environment for bettors. The platform includes features that let users follow friends, exchange friendly trash talk, and compete on bets. As BettorEdge puts it:

"BettorEdge social builds transparency directly into the platform. You're able to follow your friends, smack talk, bet the markets with them or against them!" - BettorEdge

The platform supports a wide range of betting formats across major leagues like the NFL, NBA, MLB, and UFC. With recognition such as the 2022 SBC Rising Star of the Year award and legal operations in more than 45 states, BettorEdge offers U.S. sports bettors improved odds and a more engaging experience.

Ways to Reduce Vig Costs

After examining how vig affects betting, here are some actionable strategies to help cut down its cost.

Using No-Vig Platforms

One way to eliminate vig costs is by betting on peer-to-peer platforms that connect users directly. These platforms let bettors wager against each other instead of a traditional sportsbook, removing the need for commissions built into the odds. This setup lowers the break-even rate, which can make a big difference for those placing frequent bets.

Choosing Low-Vig Bets

Another way to save on vig is by targeting bets in markets and events that typically have lower commission rates. Major events in popular leagues like the NFL, NBA, MLB, and UFC often feature tighter margins. Here are a few ways to reduce vig impact:

Stick to straight bets instead of parlays
Use promotional odds when available
Keep an eye on line movements
Compare odds at different times to find better value

These methods work well alongside the peer-to-peer betting approach discussed below.

Betting Peer-to-Peer

Peer-to-peer betting takes the no-vig concept further by creating a transparent marketplace where bettors match directly with each other. This eliminates the need for a house that profits from every line, allowing odds to better reflect market sentiment.

This approach is gaining momentum. Peer-to-peer platforms have already handled over $100 million in market orders and facilitated more than 1 million bets. Many of these platforms also offer features like competitions and head-to-head challenges, providing more ways to participate without the typical house edge.

Betting Approach	Break-Even Rate	Long-Term Impact
Traditional Sportsbook	52.4%	Higher barrier to profit
Peer-to-Peer	50.0%	Lower break-even point
No-Vig Platform	50.0%	Maximum potential return

Conclusion

The vig plays a major role in shaping sports betting results. As shown in our parlay analysis, a typical 4.57% vig can add up quickly, slashing potential payouts by more than 21% on a simple 5-leg parlay. This hidden fee changes the math of sports betting, forcing bettors to win over 52.4% of their bets just to break even.

Peer-to-peer betting platforms are changing the game by removing the traditional house edge. These platforms provide market-based odds that reflect actual probabilities instead of bookmaker-adjusted lines. So far, this model has gained traction, with over $100 million in market orders and more than 1 million bets placed through peer-to-peer systems. This shift doesn’t just affect individual bets - it reshapes long-term profitability for bettors.

Without the vig, bettors have a much better shot at success. This levels the playing field, allowing them to rely on their knowledge and skills without being weighed down by extra fees.