Prior to finding the best bookie software, learning the key concepts and terms in sports betting should be your priority. Just like any business venture, you have a lot to lose if you go in blind. Thankfully, learning how to be a bookie is easy, and there are many ways that you can easily manage your own sportsbook. Today, we’ve prepared a bookie beginner’s guide to vigorish, which is probably one of the most important words a bookie should know.
The Vigorish is in every single sports bet that a player places. After all, without it, how will a bookie earn money? The vigorish is the main source of income of a bookie. This is the house advantage integrated into the odds in a sportsbook. It is a percentage of the wager that the sportsbook sets. While it seems easier to hold a set percentage of vigorish, or vig, the rate generally differs for each wager type made.
Guide to Vigorish: How is the Vig Set?
Your sportsbook pay per head already comes with the betting lines created by the best oddsmakers in the industry. As a bookie, it will be your job to tweak these lines based on the vig, changes in the market, and to try to balance your betting lines. As a bookie, your goal is to try to attract an equal amount of money in both sides of a wager. That way, whichever side wins, you stand to earn a profit. Of course, it does not work that way always. But either way, you are still earning from the vig.
The thing about vigorish, is that every sportsbook offers one. You will, however, encounter differing rates or percentages of vigorish. In fact, professional sports bettors actually go shopping for the lowest, so they can find better value for their wagers. So setting a high vigorish may work for you in the beginning, but its not a long-term strategy that will work. Offering lower-than normal vigorish will be attractive to your players. But when it comes to lower pricing, it becomes a numbers game.
Setting Your Vig
Remember that you have overhead costs to recoup. If you check these bookie pay per head reviews, you will see how much more or less it will cost to use a pph service. If you have a low vig set, then you will still need your players to place more wagers to profit from them. This will be especially true if your sportsbook operation is still quite small. You can offer a low vig as a starting rate to promote your new sportsbook. But unless you have a huge bulk of wagers offsetting the low vig, you will need to increase it to turn up a profit. It now becomes a careful balance of being able to earn, and still be attractive enough for your players.