How Sportsbooks Make Money

A huge question in the sports betting world is how the sportsbooks make their money? Sportsbooks are without a doubt making tons of money off of people betting on sports. The more money coming in on bets, the better chance the sportsbooks have of making money. There are a few ways this happens that most people are unaware of. We will go over the ways that sportsbooks make their money and a couple of ways you can take advantage of at least capitalize on getting fair odds while sports betting.

Sportsbooks ultimate goal is to take in more money than the payouts for winning bets. Every sportsbook uses algorithms and strategies to ensure this is the case for every single game. The biggest way sportsbooks make their money is by charging for the vig. The vig is the amount the sportsbook charges for taking a bet. You may have also heard this called “juice”. The sportsbook capitalizes and collects the vig if the bet loses. This is almost like a fee you pay for placing a bet. This is not anything that is explained to you by the sportsbooks. They take advantage of this in the odds and in the lines. Most newer sports bettors are not aware of this, so this is how sportsbooks really capitalize.

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The books are able to make more money by adding vig to the lines. This guarantees that the book will make money no matter what. These odds are set to make sure that the books guarantee themselves profit, and also stay close to the actual probabilities of the game.

Think of it like a coin toss. The odds would be +100 in moneyline, 2.00 for decimal odds, and 1/1 for fractional odds. This applies to both options. 

Odds makers are people who set the odds for the sportsbooks. They are setting the odds to make sure the sportsbook makes money off of the play. They need to be well rounded in every sport to ensure they can set the odds properly. They also help betting companies decide whether to accept the bet or not as it can force them to tip the odds in a different direction just to maintain profit margin. 

There is a way you can take advantage of beating the vig while betting on sports. Using a tool called a no-vig fair odds calculator will calculate what is considered to be fair odds for a play. This will allow you to not only get the best odds for that particular play, but it will also give you an indication of how you can discover the true odds behind a play with the juice or vig taken out. Now you are giving yourself an advantage on the sportsbooks by knowing exactly what price you should actually be getting for a particular play. Utilizing this tool is exactly what the sharp bettors do to guarantee that they are having an edge on the sportsbooks. The ultimate goal as a sports bettor is to get every single edge that you can possibly get.

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