What is Vig? Complete Devigging Guide for Sports Betting

Learn how bookmakers build profit margins into odds and how to remove them to find true value.

Understanding vig is fundamental to successful sports betting. It's the invisible tax that bookmakers charge on every wager, and if you don't know how to account for it, you'll never find true value.

This guide explains what vig is, why Pinnacle's low-vig lines are crucial for value betting, and how four different devigging methods work to reveal fair odds.

What is Vig?

A sportsbook's vig is its built-in profit margin. Other words for vig include juice, overround, and hold.

Vig makes the payouts less generous than they should be so that sportsbooks can make money. Think of it as the bookmaker's commission on every bet.

Simple example:

In a fair coin flip, both sides should be offered at 2.00 odds (50% probability each). But a sportsbook with 5% vig might offer:

  • Heads: 1.95 odds (51.28% implied probability)
  • Tails: 1.95 odds (51.28% implied probability)
  • Total: 102.56% (the extra 2.56% is the vig)

The sportsbook guaranteed itself a 2.56% margin no matter which side wins. That's vig in action.

Pinnacle's Low-Vig Lines: The Gold Standard

The sharpest sportsbook in the world, called Pinnacle, has the lowest vig when compared with all other sportsbooks.

On most very liquid markets, its standard spreads and moneyline offerings have a vig of less than 2% compared with around 8% for other sportsbooks.

For professional sports bettors, Pinnacle's low-vig lines represent the sharpest market odds available. Its rapidly adjusted prices based on smart money provide the most accurate market probabilities.

Why Pinnacle matters for value betting:

  • Lowest vig = closest to true fair odds
  • Accepts sharp action and high limits
  • Other sportsbooks copy Pinnacle's lines (with delay)
  • Most efficient price discovery in the market
  • Ideal baseline for identifying mispriced odds at other books

Critical insight: Even at Pinnacle, there is a built-in vig or edge for the book. So to utilize its efficient market lines, bettors must first "de-vig" its odds to find the true implied probabilities.

These de-vigged Pinnacle probabilities can then be compared against the slow-moving soft lines at other sportsbooks to find value betting opportunities.

Four Popular Devigging Methods

There are four popular devigging methods that allocate Pinnacle's vig differently. Each has strengths and weaknesses.

1. Additive Method

The Additive method divides the total vigorish equally across all potential outcomes in the market.

How it works: If the total vig is 2% across a two-way market, subtract 1% from each side's implied probability.

Pros:

  • Simple and intuitive calculation
  • Easy to understand and implement
  • Works well for evenly matched markets

Cons:

  • Can create negative probabilities for longshot outcomes
  • Doesn't account for favorite-longshot bias
  • Can produce mathematically infeasible results

2. Multiplicative Method

With the Multiplicative method, the vigorish is spread proportionally based on each outcome's implied probability from the initial odds.

How it works: Higher probability outcomes (favorites) receive a larger allocation of the vig to remove.

Pros:

  • Maintains probability relationships
  • Never produces negative probabilities
  • Straightforward mathematical approach

Cons:

  • May not accurately reflect real-world betting behavior
  • Doesn't account for longshot bias
  • Can underestimate favorite probabilities

3. Power Method ⭐️ (Recommended)

The Power method is an extension that raises the implied probabilities to a constant power value.

How it works: Adjusts all probabilities by raising them to a power (typically around 1.2-1.4) that accounts for market inefficiencies.

Pros:

  • Accounts for favorite-longshot bias
  • Ensures de-vigged probabilities remain within valid 0-1 range
  • Most accurate reflection of true probabilities in real markets
  • Widely accepted by professional bettors

Cons:

  • Slightly more complex to calculate manually
  • May overadjust for extreme longshots in some cases

Why we recommend it: The Power method provides the best balance between mathematical soundness and real-world accuracy. It's the default method on FairOdds Terminal.

4. Shin Method

The Shin method utilizes an iterative algorithm specifically designed to correct for the favorite-longshot bias in betting markets.

How it works: Uses complex iterations to model insider trading and information asymmetry effects on odds.

Pros:

  • Accounts for favorite-longshot bias
  • Models insider information effects
  • Generally provides improved predictive accuracy
  • Equivalent to Additive method for two-outcome markets

Cons:

  • Computationally intensive
  • Overkill for most betting situations
  • Marginal improvement over Power method in practice

Automatic Devigging: Let the Terminal Do the Work

The great advantage for users is that they don't need to devig Pinnacle's lines themselves. FairOdds Terminal handles that process automatically, providing the fully de-vigged probabilities.

The terminal uses optimized devigging calculations to display the No Vig Price (NVP) for every market in the "No-Vig Odds" column. This gives you an instant reference for fair odds without any manual calculations.

With the heavy lifting of devigging done automatically, users can focus on what really matters: finding value in the mispriced markets.

Pinnacle's NVP (No Vig Price)

On every market in the terminal you will see a "No-Vig Odds" column, which displays the price after the vig has been subtracted from Pinnacle's odds.

This is an extremely important data point as it is the price you should be aiming to beat in order to have a positive expected value bet.

Example from the screenshot: Looking at the Positive Expected Value Bets display, you can see the "No-Vig Odds" column showing fair prices like 3.85, 3.64, 3.89 for various soccer matches. Compare these to the "Soft Odds" column (4.3, 4.0, 4.25) to see which bets offer value.

If a soft bookmaker offers 4.3 and the No-Vig Odds show 3.85, you're getting exceptional value—that's why this bet has a high EV% (like the +11.7% shown in the grid).

Our Recommended Method: The Power Approach

While there is disagreement over which devigging method is best, we recommend the Power method for most users.

This approach accounts for the favorite-longshot bias that is prevalent in sports betting markets. The longshot underdogs tend to be overbet, meaning sportsbooks apply more vigorish to that side of the market. The Power method adjusts for this behavior, raising the probabilities to a constant power value.

It also ensures the de-vigged probabilities remain within the 0-1 range, avoiding infeasibilities that can occur with other techniques like the Additive method producing negative probabilities for longshots.

By accurately capturing real-world betting patterns, the Power method provides a sound devigging approach for turning Pinnacle's sharp lines into a powerful edge-finding tool.

Bottom line: Start with the Power method. If you have specific reasons to try other methods after gaining experience, you can adjust your settings. But Power is the gold standard for a reason.

Practical Application: Finding Value with Devigged Odds

Here's how you use devigging in your actual betting workflow:

  1. Monitor the terminal: FairOdds Terminal displays Positive EV opportunities in real-time
  2. Automatic devigging: Terminal removes vig from Pinnacle odds and shows "No-Vig Odds"
  3. Compare columns: Look at "Soft Odds" vs "No-Vig Odds" columns
  4. Check EV%: The terminal calculates your edge (e.g., +11.7%, +9.8%)
  5. Bet if positive EV: If odds beat the NVP (shown as green positive EV%), place the bet immediately

The entire process takes seconds once you understand the concept. No manual calculations needed.

Summary

Key takeaways from this guide:

  • Vig (juice, overround, hold) is the bookmaker's profit margin built into odds
  • Pinnacle offers the lowest vig (under 2%) vs recreational books (around 8%)
  • Devigging removes vig to calculate true fair probabilities
  • Four methods: Additive, Multiplicative, Power (recommended), Shin
  • Power method accounts for favorite-longshot bias and avoids infeasibilities
  • FairOdds Terminal automatically devigs and displays NVP for every market
  • Beat the NVP to ensure positive expected value on every bet

Ready to start using devigged odds to find value? FairOdds Terminal automatically handles all devigging calculations so you can focus on finding and placing +EV bets.

Vig & Devigging FAQ

What is vig in sports betting?

Vig (short for vigorish), also called juice, overround, or hold, is the sportsbook's built-in profit margin. It makes payouts less generous than true fair odds would suggest, ensuring the bookmaker makes money regardless of outcomes.

How much vig do sportsbooks charge?

Most recreational sportsbooks charge around 8% vig on standard markets. Pinnacle, the sharpest sportsbook, charges less than 2% vig on very liquid markets like NFL spreads and NBA moneylines. Lower vig means better odds for bettors.

What is devigging?

Devigging is the process of removing the vig from odds to calculate true fair probabilities. There are four main methods: Additive, Multiplicative, Power, and Shin. Each method allocates the vig differently across outcomes to estimate true probabilities.

Which devigging method is best?

The Power method is recommended for most bettors. It accounts for favorite-longshot bias (underdogs being overbet) and ensures devigged probabilities remain within the valid 0-1 range, avoiding mathematical infeasibilities that can occur with other methods.

What is the favorite-longshot bias?

Favorite-longshot bias is the tendency for recreational bettors to overbet underdogs (longshots) and underbet favorites. This causes sportsbooks to apply more vig to underdog odds. The Power and Shin devigging methods account for this bias.

Do I need to manually devig odds?

No. FairOdds Terminal automatically devigs Pinnacle's odds and displays the No Vig Price (NVP) in the "No-Vig Odds" column for every market. The calculations are done in real-time so you can instantly compare fair odds to soft bookmaker prices.

Why does Pinnacle have such low vig?

Pinnacle operates on a high-volume, low-margin business model. They welcome professional bettors, accept high limits, and profit from massive betting volume rather than squeezing individual customers with high vig. This creates the most efficient market in sports betting.

How does removing vig help me find value bets?

By removing vig from Pinnacle's sharp odds, you get true fair probabilities. Comparing these against recreational sportsbooks' odds (which include 8% vig) reveals mispriced markets where you can bet with positive expected value.