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What Does ‘Juice’ Mean in Sports Betting?

what-does-juice-mean

In the world of sports betting, the term “juice” refers to the commission a sportsbook charges for taking a bet. It is also commonly known as the “vig” or “vigorish.” This fee is how sportsbooks ensure they make a profit, regardless of the outcome of the event.

How Juice Works

The juice is built directly into the odds you see for a particular bet. In an ideal scenario with no juice, the odds on a 50/50 proposition, like a coin toss, would be even money (+100 in American odds). This means a $100 bet would win you $100. However, sportsbooks need to make money, so they adjust the odds in their favor.

The most common example of juice is found in point spread and totals (over/under) bets. Typically, you will see odds of -110 on both sides of these bets. This means that to win $100, you need to risk $110. The extra $10 is the sportsbook’s juice.

Example

Let’s say you and a friend bet on a football game with a point spread. You bet $110 on Team A to cover the spread, and your friend bets $110 on Team B.

  • Total amount wagered: $220
  • If Team A covers: You win $100, plus your original $110 stake back, for a total of $210.
  • If Team B covers: Your friend wins $100, plus their original $110 stake back, for a total of $210.

In either outcome, the sportsbook pays out $210 but has collected $220. The remaining $10 is their guaranteed profit, or the juice.

Why Juice Matters to Bettors

Understanding the concept of juice is crucial for anyone serious about sports betting for a few key reasons:

  • Impact on Profitability: The juice directly affects your potential winnings. A higher juice means a smaller payout and makes it more challenging to be profitable in the long run.
  • Break-Even Point: Because of the juice, you need to win more than 50% of your bets to break even. With standard -110 odds, your break-even point is 52.38%.
  • Shopping for the Best Lines: The amount of juice can vary between different sportsbooks. Experienced bettors, often called “sharps,” will “shop for lines” to find the sportsbooks with the lowest juice, thereby maximizing their potential returns. Reduced juice offerings, such as -105 odds, can provide a significant advantage over time.