What is the house cut in sports betting

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What is the house cut, commission, vigorish, vig, or juice?

Posted by Steve Leighton

In sports betting, the odds makers at the sports books in Las Vegas attempt to attract an equal amount of dollars wagered on each side of every sporting event. By adjusting the point spread or adjusting the fixed odds or adjusting the total points, the objective is to attract the same amount of dollars bet on either outcome of every event. If successful in doing so, the sports book collects the “house cut” (commission, vigorish, juice or vig) and has no exposure to losing money on the final outcome of the game.

As an example, if the betting line is set at 7 points for a particular game and the early bets are on the favorite, the odds makers will increase the betting line to 7½ points or 8 points to attract bets to the underdog. Keep in mind their goal is to have equal amounts of money bet on both the favorite and the underdog prior to game time. The casino sports book’s strategy allows minimal exposure to losses and a guaranteed profit on the “house cut” of the action.

The house cut is normally 10% of the wager. Recently, several off strip Vegas casinos have reduced their cut to less than ten percent to attract new customers.

Sports Line Unlimited by Steve Leighton

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