Many sports betting enthusiasts are familiar with the phrases Vig Deal, Option and Unsure. But, for the sake of those who may be less familiar, let’s define and discuss each one.
Vig Deal ==> Vig (pronounced “VEE-g”) deal is the name given to a type of bet where the bettor pays a commission to the sportsbook. The amount of the commission varies based on several factors, such as the amount wagered and the win/loss record of the team or player. Typically, the vig is calculated as a percentage of the total amount wagered on the wager. For example, if one wagers $100 and wins, the vig would be $2. If one wins $1000, the vig would be 10% ($100 * 0.10), etc.
While it’s true that a Vig Deal is the most popular type of bet among sports betting enthusiasts, it’s also the most complicated. In order to fully understand what a Vig Deal is, let’s discuss the meaning of each part.
The Vig
The vig, as mentioned above, is the commission or fee charged by the bookmaker on a winning wager. In most cases, this is a percentage of the total amount wagered. For example, if one wagers $100 and wins, the vig would be $2. If one wins $1000, the vig would be 10% ($100 * 0.10), etc. A percentage of the total amount wagered is typically used because it is the standard commission rate in America (and many other countries). But, in some cases, a flat rate is used instead.
The Total Amount
The total amount, as the name suggests, is the total amount wagered by all the bettors who placed the Vig Deal. So, in the example above, there are two bettors who wagered $100 on the Cleveland Cavaliers. Their $100 would be added together to create the total amount of $200 (2 x $100).
Placing A Vig Deal
Before placing a bet on a Vig Deal, it’s important to understand what constitutes a “Vig Deal”. Essentially, it is a type of bet where the bettor must pay a commission to the sportsbook. This is usually done in one of the following ways:
- via check;
- via credit card;
- via wire transfer;
- in person (at a brick and mortar location).
Of course, there are several variations of the above scenario. But, for the sake of simplicity, let’s discuss how a Vig Deal is typically placed.
First, let’s assume that the bettor uses a credit card to place the bet. In this case, the credit card will be charged an additional fee, usually around 2%. This is due to the fact that the credit card company (and, in some cases, the bank itself) also acts as the bookmaker’s financial backer. As a result, they earn a commission from every winning ticket.
Second, let’s assume that the bettor uses a check to place the bet. In this case, the check will be charged a service fee of around 2% or 3% (depending on the check-writing institution). Additionally, if the check is returned due to insufficient funds, the bettor will incur a charge from the check-writing institution as well. The total amount of these fees is usually referred to as the “vig” or the “commission”.
Risk
Whether it is taken out of context or not, the phrase “risk” can sometimes be used interchangeably with “vig”. Even though there is some slight semantic difference between the two, they are often used interchangeably. When used in this manner, risk is most generally refers to the likelihood of losing money or capital on a particular wager. In simple terms, risk is simply “the chance to lose”.
Losing
When used in reference to a sports betting transaction, “losing” generally means that the bettor does not win as much as he or she wagered on the bet. For example, if one wagers $100 on the Cleveland Cavaliers and they win, one would consider themselves lucky to have placed a winning bet, as one would have lost $100. In most cases, “losing” is also used in reference to the amount of money wagered on a particular wager.
Winning
When used in reference to a sports betting transaction, “winning” generally means that the bettor gains as much as he or she wagered on the bet. For example, if one wagers $100 on the Cleveland Cavaliers and they win, one would consider oneself lucky to have placed a winning bet, as one would have gained $100. In most cases, “winning” is also used in reference to the amount of money wagered on a particular wager.
To briefly recap the above, the term Vig Deal refers to a type of sports bet where the bettor pays a commission to the sportsbook. This is usually done in one of the following ways: via credit card; via check; via wire transfer; in person (at a brick and mortar location).
As mentioned above, there are several forms of the Vig Deal, but for the sake of simplicity, let’s discuss the 5% Vig Deal.
5% Vig Deal
As its name suggests, the 5% Vig Deal requires the bettor to bet $100 on the favorite team with a 5% vig. So, in the above example, since the Cleveland Cavaliers are the favorite team, the bettor would need to wager $100 on them in order to make a 5% profit. But, since one already has $100 wagered on the team, one would then win $5, making it a profitable bet.
In any case, the 5% Vig Deal is a popular choice among bettors because it is an easily comprehensible way of understanding and calculating one’s winnings and losses. As a result, it is a simple way to keep track of one’s finances, as well as a good way to get started in the sports betting world.
Understanding The Difference Between The 3 Types Of Vig Deals
As mentioned above, a Vig Deal can be confusing and even a little bit complicated. But, for the sake of simplicity and clarity, let’s discuss the differences between the following types of Vig Deals:
- A 5% Vig Deal;
- A 10% Vig Deal;
- An “Even Money Vig Deal”.
The above three types of Vig Deals are fairly self-explanatory. But, for the sake of those who may be less familiar, here is a quick overview of each type.
A 5% Vig Deal
The simplest and, often, the most popular form of a Vig Deal is the 5% Vig Deal. As its name implies, a 5% Vig Deal requires the bettor to wager $100 on the favorite team with a 5% vig. So, in the above example, since the Cleveland Cavaliers are the favorite team, one would need to wager $100 on them (i.e., $5) in order to make a 5% profit. But, since one already has $100 wagered on the team, one would then win $5, making it a profitable bet.
As mentioned above, the 5% Vig Deal is a popular choice among bettors because it is an easily comprehensible way of keeping track of one’s finances, as well as a good way to get started in the sports betting world. Additionally, most sportsbooks offer 5% or 6% Vigs for football and basketball, while some books will even give 7% Vigs on certain occasions, particularly when there is a high volume of wagers placed on a certain game. As a result, it is generally accepted that, as a beginner, one should start with a 5% or 6% Vig Deal, if available.