To get the edge here, we first need to calculate the implied probability, and we do this using two different formulas, one for negative odds and one for positive: We calculated the house edge on a simple 50/50 coin flip, but let’s look at something a little more complicated: Here FanDuel is taking both teams at -108. It’s a 5% commission (Or Vig as they call it in the industry) that ensures the line remains profitable for the house even if the bets are 50/50. This means you must wager $105 to win $100. Actual coin flips (such as those wagered on the toss that starts the Super Bowl) usually have odds of -105 both ways. It relies on bets, and the only way for it to profit in this scenario is to hope that 51% or more people bet on the losing outcome. This means that a $100 wager wins $100.īut if a sportsbook was to offer the same wager, it would also be taking a gamble. If we convert these chances into odds, both outcomes would be +100 (Evens, 2.00 in Decimal Odds). It has a 50% chance of landing on Tails and a 50% chance of landing on Heads. To understand how the edge works, consider a coin flip. In the following guide, we’ll show you how to calculate it. This is the edge that ensures the scales remain tipped in the house’s favor. Whether you’re betting on sports or playing casino games, there is always a house edge.
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