What Does ‘Commission’ Mean in Sports Betting?
In the United States, we almost never use the word “commission.” The term we use for the same concept is the “Vig“ or the “Juice.”
The “vig” is the sportsbook’s implied commission or fee that is built directly into the odds. It’s the price you pay to the “house” (like FanDuel, DraftKings, or a Vegas casino) for taking your bet.
This is how they guarantee they make money, no matter who wins the game.
The Classic Example: The -110 Line
The easiest way to see the “commission” or “vig” is on a point spread or total (Over/Under) bet.
You will almost always see -110 odds listed next to both sides of the bet:
- Dallas Cowboys -7 (Odds: -110)
- New York Giants +7 (Odds: -110)
That -110 is the vig.
- It means you have to risk $11 to win $10 (or $110 to win $100).
- If this were a “true” 50/50 bet with no commission, the odds would be +100 (risk $10 to win $10).
Think of it this way:
- You bet $11 on the Cowboys.
- Your friend bets $11 on the Giants.
- The sportsbook has collected a total of $22.
- No matter who wins, the sportsbook only has to pay the winner $21 ($10 in profit + their $11 stake back).
- The $1 the sportsbook keeps is its “commission” or “vig.”
Where You’ll See the Actual Word “Commission”
You will see the literal word “commission” used on a Betting Exchange.
This is a different type of platform (much more popular in Europe) where you bet directly against other people, not the house.
- A US Sportsbook (like FanDuel): Acts like a store. It “sells” you a bet at a price it sets (the odds with the vig).
- A Betting Exchange (like Betfair): Acts like eBay. It’s a marketplace that just connects a person who wants to “back” a bet with a person who wants to “lay” (bet against) it.
Since the exchange is just a middleman, it doesn’t use a “vig.” Instead, it charges the winner a small commission (like 2% to 5%) on their winnings.