
How Juice Works for Sports Betting
Sportsbooks make money by taking a percentage of the money wagered by bettors. This is known as the "vig" or "juice". When a bettor places a bet, they must risk more than they stand to win. For example, a bettor might risk $110 to win $100. This extra $10 represents the sportsbook's commission or vig.
Sportsbooks set the odds for each game or event based on their assessment of the probability of different outcomes. They may adjust the odds over time as more money is wagered to try to balance the amount of money bet on each side of a wager, in order to minimize their risk.
By taking a commission on all bets, the sportsbook can ensure that they make a profit over time, regardless of the outcome of any individual bet. In other words, they are essentially betting against the bettors and taking a cut of the action. However, sportsbooks can still lose money if too much money is bet on one side of a game or event, and that side wins. To minimize this risk, sportsbooks may limit the amount of money that can be bet on certain games or events, or adjust the odds to encourage more balanced betting.
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