Both betting strategies provide the returns to a hypothetical bettor who wagers $110 based on the strategy and wins $100 due to the 10% vigorish.
Therefore $110 divided by $210 provides the 52.38% that bettors must average in order to have a profitable strategy after accounting for the vigorish.
First, the internet gambling sites generate enough volume to compete on the vigorish
, offering rates as low as 2% to high-volume betters.
However, it would be possible for unfair bets to become more than fair as participation in a single drawing changes if the government did not extract huge taxes in the form of vigorish
and personal income taxes.
In a sports bet, the bettor is wagering against the house, and pays for their wager plus a vigorish
, which is essentially a payment to the house for the privilege of placing the bet.
Japan is only part of the problem of too many American dollars chasing too many foreign goods; in the Far East, Singapore and Taiwan are rudely elbowing Japan for a share of the shrinking world market for consumer goods, and the debtor nations of Latin America are desperately seeking more foreign exchange to pay the vigorish
demanded by multinational bankers.
Such abnormality implies that the bookmaker would make in excess of the commission charged on the stake, often known as the Vigorish
(Vig) (Burkey, 2005), or in excess of the long run expected built-in profit for the bookmaker, known as the over-round (Milliner et al., 2009).
In sports betting, the relatively modest commissions or "vigorish
" of 2-7% are likely to attract a significant number of individuals who consider their handicapping abilities sufficiently reliable to eventuate in profitable wagering.
When a sportsbook creates its gambling lines it adds in a "vig" or "juice," which is slang for vigorish, a fee charged to make a bet.
(6) Previous studies that examine futures markets in betting use the same method to spread the vigorish evenly among the competitors (Chung & Hwang, 2010; Leitner, Zeileis, & Hornik, 2010).
This balanced betting eliminates their risk and allows the sports book to earn a certain return equal to the vigorish
(commission) on losing bets.