Sportsbooks earn money using what’s commonly referred to as the “vig.” The vig is built right into the odds on every bet. As long as they take in an equal amount of money on each side of a bet, sportsbooks will earn the difference between what they take in on the losing side and what they pay out to winners. This is the vig.
It makes no difference to the sportsbook whether you win or lose, just that they take in an equal amount of money on each side, giving them the chance to earn that vig. That means sportsbooks are always trying to keep the betting even.
In other words, when more money is coming in on one side of a bet, sportsbooks will move the line to try to make the other side more attractive. This will draw more bets on that side, getting things back to even.
Keep reading for an in-depth analysis of why sports betting lines move, what lines see more movement, and the different ways you can take advantage.
Equal opportunity sportsbooks
Sports betting is a business. Sportsbooks are the service providers in this business. They’re not the ones gambling; you are. As long as they can draw equal betting action on both sides of a bet, they’re earning the vig built into the odds. When they can do that, sportsbooks aren’t sweating the outcome of a game like you are, and they don’t care whether you win or lose.
Let’s say a North Carolina online sportsbook draws $110,000 in bets on the Carolina Panthers at -3.5 (-110) and an equal $110,000 on the New Orleans Saints in the same game at +3.5 (-110). If Carolina covers, they’ll pay out $100,000 in winnings to anyone who bet on the Panthers, but they’ll keep the $110,000 bet on the Saints. That $10,000 difference is the vig they’ll earn.
However, sportsbooks are at risk when more money comes in on one side of a bet. Let’s say a NC sports betting site draws $110,000 in bets on the Carolina Panthers -3.5 (-110) and just $55,000 on the New Orleans Saints in the same game at +3.5 (-110). If Carolina wins by four or more, the sportsbook will lose $45,000, paying out $100,000 in winnings to anyone who bet on the Panthers, but only keeping the $55,000 from bets on the Saints.
That’s not a sustainable business model. Let’s learn more about how sportsbooks approach such a situation below.
Bet365 Sportsbook
BetMGM Sportsbook
Caesars Sportsbook
DraftKings Sportsbook
Fanatics Sportsbook
FanDuel Sportsbook