What is the Sportsbook's Juice?

No matter where you play, no matter how generous a particular sportsbook might be, you're going to have sportsbook juice on most of your bets. Sportsbook juice is another term for Sportsbook Vigorish, an old school way of basically saying "The sportsbook is charging a percentage on your bet". The juice charged on bets keeps the book in business.

Definition of Sportsbook Juice: Sportsbook "Juice" or Vigorish is a numerical value added to the line on the favored team so that the sportsbook can make money off a particular bet. Since betting the favorite is considered a safer bet, the sportsbook charges this fee, usually 10% of your bet, if your bet wins. Vigorish or Juice provides profit to the sportsbook, and is a service charge for the smaller risk associated with picking the favorite in a given matchup.

Sportsbook Juice Example:

The Red Sox are playing the Yankees, and the Red Sox are favored to win with lines 110 to 90, respectively. In this situation, the Yankees would be considered the "underdog" or "dog". These lines mean that if you bet the favored Red Sox, you'll get $90 for every $100 you bet; or, if you bet the underdog Yankees, you'll get $110 for every $100 you bet. The "Juice" is the $10 the players who bet the favorite forfeit to the house for picking a less risky bet.

Thoughts on Sportsbook Juice:

1. Always look at the sportsbook's lines for your game carefully. The lines are typically 110/90, but many times this is not the case. Being aware of the odds on a particular bet allows you to bet wisely and hopefully choose the winner of the contest. In cases where there is a very strong chance the favorite will win, the sportsbook might alter the lines and charge more "juice" for the bet.

2. Sportsbook juice and payouts that result from a matchup allow the sportsbook to make money off picking the favorite team. It's all about risk and rewards. If you pick the underdog, you're taking a riskier bet, and it's more likely that the sportsbook will take your money. You would not be charged any juice. If, however, you pick the favorite, you're taking a safer bet, and its more likely that the sportsbook will lose money. In this case you would be charged juice by the sportsbook as a fee for playing it safe.

3. Some sportsbooks offer "reduced juice" on weekdays or for special sporting events. Check your sportsbook's promotions section carefully to see when these days come up on your game schedule. Typically, reduced juice days are offered on days with little or no major sporting events (like Tuesdays or Wednesdays). The sportsbook does this to attract more action on slower days, but it also won't face huge losses if the favorite comes in because the handle for the day will be smaller than a weekend event.

4. Does it pay to always bet the underdog? Even though you get more money for betting successfully on the underdog, this doesn't mean that it will be profitable to do so all season long. In some cases, playing the favorite is safe and more profitable even though you get less than even money on your bet. The best strategy is to research your games carefully and pick your own winners. As a result, over the course of a profitable sports betting season, there will be days when you earn a little extra for picking the dog, but other days when you'll win a little less than you bet for staying with the favorite. The idea is to win games and win bets, not to take foolish risks.

5. Lines and Odds, and in many cases the way juice is charged, are different in Europe. Most sportsbooks that cater to the American sports market use the odds described in the example above. If you're betting in Europe, particularly on soccer games, the odds and juice will be figured slightly differently, although ultimately the concept that the favorite pays less still stands. Always check your lines and odds carefully: you don't want to mistakenly pick the wrong team because you don't understand the risk you're taking.

6. There's no Juice on some exotic bets, like Parlays. The parlay bet is a good example of a no juice bet, because the odds that the player will pick the correct winners in multiple games are clearly stacked against the player. Therefore, because picking multiple winners in multiple contests is harder than picking one winner in one contest, the sportsbook does not have to charge a fee for betting. More often than not, the sportsbook will always come out on top when it accepts parlay bets from a large number of players, simply because the math clearly favors the sportsbook.