Vigorish - Vigorish Percentage

Vigorish Percentage

Vigorish percentage can be defined in a way independent of the outcome of the event and of bettors' behaviors by defining it as the percentage raked in a risk-free wager. This definition is the rake of the bookie as a percentage of total bets received if the bookie has balanced the wagers so that he makes equal profit regardless of the outcome of the event.

For a two outcome event, the vigorish percentage, v is

where the p and q are the decimal payouts for each outcome. This should not be confused with the percentage a bettor pays due to vigorish. No consistent definition of the percentage a bettor pays due to vigorish can be made without first defining the bettor's behavior under juiced odds and assuming a win-percentage for the bettor. These factors are discussed under the debate section.

For example, −110 side pricing of an even match is 4.55% vigorish, and −105 side pricing is 2.38% vigorish.

Vigorish percentage for three-way events may be calculated using the following formula:

where p, q and t are the decimal payouts for each outcome. For comparison, for overround calculation only the upper part of the equasion is used, leading to slightly higher percentage results than the vigorish calculation.