Definition
Commission Vig (short for “vigorish”) is the fee or “cut” the house takes on a wager to ensure a profit regardless of the outcome. It is the difference between the true mathematical odds of an event and the payout odds offered by the casino.
In context
When you bet on a football game at a sportsbook, you usually see “-110.” This means you must bet $110 to win $100. The extra $10 is the “vig.” Even if you win, the house has essentially charged you a commission for the right to place the bet.
Why it matters
The vig is the lifeblood of the gambling industry. It is the invisible force that creates the house edge. Understanding how much vig you are paying allows you to compare different games and choose the ones that give you the best chance of staying in the game longer.
Related terms
In detail
While the terms “commission” and “vig” are often used interchangeably on the casino floor, “Commission Vig” specifically refers to the price of doing business with the house. It is the “juice” or the “cut.” In a perfect world, if you and a friend bet $10 on a coin flip, the winner gets $20. In a casino, the house acts as the middleman. They take your $10, and if you win, they might only give you $19. That $1 difference is the commission vig.
The Math of the Cut
The vig is usually expressed as a percentage or as “points” in sports betting. In table games, it is often baked into the payout structure.
- Baccarat: As discussed in the “Commission” entry, the 5% Banker tax is a direct form of vig.
- Roulette: The vig isn’t a fee you pay when you win; it’s the 0 and 00 on the wheel. By paying 35-to-1 on a 38-to-1 shot, the house is taking a 5.26% vig on every dollar wagered.
- Craps: The vig appears when you “Buy” or “Lay” a bet. If you want to bet against the 4 (a “Lay” bet), you are betting $40 to win $20. The house will charge you a $1 vig to facilitate that bet.
Vig in Sports Betting
The sportsbook is where the term “vig” is most commonly used. If a bookie takes $1,100 in bets on the Lakers and $1,100 in bets on the Celtics (both at -110), they are guaranteed a profit.
- Total collected: $2,200.
- The winners (Lakers) get their $1,100 back plus $1,000 in profit.
- Total paid out: $2,100.
- The house keeps $100.
This $100 profit is the commission vig. The house doesn’t care who wins; they only care that the “book” is balanced so the vig covers their costs and profit.
The Player’s Burden
The higher the vig, the harder it is to be a long-term winner.
- In Blackjack, the vig is low (usually under 1% with basic strategy), which is why it’s a favorite for serious players.
- In Keno, the vig can be as high as 25% or 30%. This is why Keno is often called a “sucker game.”
Understanding the vig also helps you spot “bad” versions of “good” games. For example, “Triple Zero” Roulette has a much higher commission vig than “Single Zero” Roulette. By adding one more number to the wheel but keeping the payouts the same, the casino significantly increases its cut.
Operational Perspective
For a casino, the commission vig must be balanced. If the vig is too high, players will lose their money too quickly (“burn through”) and won’t have a good time, meaning they won’t come back. If the vig is too low, the casino might not make enough money to pay for the lights, the dealers, and the free drinks.
In modern “No Commission” variants of games, the vig is hidden behind “barring” rules. In Baccarat, they might bar a Banker win on a 3-card 7. In Blackjack, they might pay 6:5 instead of 3:2. Both are ways of increasing the commission vig without calling it a “fee.” Smart players always look past the “No Commission” sign to see where the house is actually taking its cut.