Sportsbooks don't gamble. They take a small cut of every bet — the "vig" or "juice" — that guarantees they profit regardless of who wins. Over millions of bets, this edge adds up to billions in revenue. Understanding this isn't pessimistic — it's practical.
What is the Vig?
The vig (short for "vigorish," also called "juice") is the commission sportsbooks charge on every bet. It's built into the odds. When you see -110 on both sides of a spread, that's the vig in action.
At -110, you bet $110 to win $100. If fair odds were offered, you'd bet $100 to win $100 (even money). That extra $10 you're risking is the sportsbook's cut.
What Does This Cost You?
At standard -110 juice, the house edge is approximately 4.55%. This means for every $100 you wager over time, you can expect to lose about $4.55 on average.
Here's how it compounds:
| Total Wagered | Expected Loss (at -110) | What It Means |
|---|---|---|
| $1,000/year | -$45.50 | Casual bettor |
| $5,000/year | -$227.50 | Regular bettor |
| $20,000/year | -$910 | Active bettor |
| $100,000/year | -$4,550 | High volume |
This is the mathematical baseline. You can beat it through skill, but you're fighting against this headwind on every bet.
Reduced Juice: A Better Deal
Some books offer reduced juice — like -105 instead of -110. This cuts the house edge roughly in half.
This is why line shopping matters. Getting -105 instead of -110 saves almost half the vig. Over a season, that's real money back in your pocket.
How Does This Compare to Other Games?
Sports betting actually has a relatively low house edge compared to most gambling:
| Game/Bet Type | Typical House Edge |
|---|---|
| Sports (point spread at -110) | 4.5% |
| Blackjack (basic strategy) | 0.5% |
| Craps (pass line) | 1.4% |
| Roulette (double zero) | 5.3% |
| Slot machines | 5-15% |
| Parlays (3+ legs) | 10-30% |
| Lottery | 50%+ |
Sports betting gives you better odds than most casino games — but the edge still exists. And on parlays, the house edge compounds significantly.
On a 3-leg parlay at standard odds, the house edge jumps to about 13%. On a 5-leg parlay, it's around 20%. Each leg multiplies the vig. This is why sportsbooks heavily promote parlays — they're their most profitable product.
Can You Beat the House Edge?
Yes, but it's hard. Here's what it takes:
Win rate needed at -110: You need to win 52.4% of your bets just to break even. To profit consistently, you need to win 54%+ over a meaningful sample size.
Professional bettors do exist, but they:
- Have sophisticated models and data
- Bet huge volumes to make the math work
- Line shop obsessively for the best odds
- Get limited or banned by sportsbooks when they win too much
For most people, the realistic goal isn't to beat the house — it's to minimize losses while enjoying the entertainment.
What This Means For You
- Budget accordingly. Expect to lose about 5% of what you wager. If you bet $2,000/year, budget for ~$100 in losses.
- Line shop. Getting -105 instead of -110 cuts your expected losses almost in half.
- Avoid parlays for profit. They're fun, but the house edge is brutal. Use them sparingly.
- It's entertainment. The house edge is the cost of playing. Like a movie ticket or golf green fee.
- Stay disciplined. The vig grinds you down slowly. Don't speed it up with bad decisions.
Understanding the house edge isn't about being cynical. It's about being realistic. You can absolutely enjoy sports betting and have a great time — just go in with eyes open about the math working against you.
Minimize the Edge
Use multiple sportsbooks to find the best odds on every bet.
Line Shopping Guide →