The Sports Bookie Blog

Key Betting Terms Explained: Overround

Sports betting odds are based on probability, reflecting the sportsbooks and bookmakers estimates of winning – but they also contain a margin to enable the bookie to make a profit if they get a balanced book.

This “margin” is called Vig, Vigorish, Juice or Overround and all these terms are taking about the same thing – the bookies “built-in” margin on the bets. Therefore it’s obvious that the lower the overround, the better the value in the market.

So how can you tell what the overround is in a market? Let’s work through a couple of examples :

In a handicap market for a European football match between Arsenal and Real Madrid, where both teams had an equal chance of winning (and the draw is refunded), without an overround they would both be fairly priced at even money or 2.00.

However, the bookies do not offer this price, instead they need a margin to make a profit and so they might only offer a price of 10/11 (1.91) on each team. A price of 1.91 reflects a 52.3% chance ( calculated as 1.00 / 1.91 = 0.523) and so the overround on this market would be around 105%. 

For US sports the simplest example is seen in the ATS bet (Against The Spread / handicap bet). Again if the spread was set correctly then without overround both sides prices would be around 2.00 (or +100 is US betting odds) – reflecting a fair price for a 50% chance.

But the effect of the “vig” (US slang for Overround) results in each of the sides usually being priced between 1.90 to 1.96 (depending on your bookmaker) rather than the 2.00

Many bookies will take around 10% margin from each market – however one of the most consistently sharp bookies (especially for US sports bets) is PinnacleSports where they only take out around a 4% margin rather than the 10% “industry standard”.

An underround can occasionally occur when you look at odds between bookies, say, if you could get 11/10 (2.10) on both teams. This is also called an arb. 

(Arbitrage – Where a variation in odds available allows a punter to back both sides and guarantee a win will be the subject of another Key Betting Terms Explained Blog soon).

>>GO TO Pinnacle Sports

>>Key Betting Terms Explained: Spread Betting 
>>Key Betting Terms Explained: Fixed Odds Betting
>>Key Betting Terms Explained: Asian Handicap Betting

Add comment January 29th, 2007

Home of the Money–back Special

Paddy Power is Ireland’s largest bookmaker and one of the UK’s fastest growing bookies since launching online services in 2000. You can always rely on Paddy for some entertainment along with your betting and we enjoy a stab at some of Paddy’s Cash Backs.

Here’s PaddyPower’s latest cash back offer – there are usually a couple on site at all times.

OK, so that might sound a longshot for Baptista, but actually these fun little insurance policies pay out more often than you’d think (well, than I thought they would anyway!). 

Well here’s a quick summary of the cash back offers that have cost Paddy a bob or two in the last six months.

46 horse racing cash back offers have paid out with offers like “Our Necks on the Line” where if your horse finishes second beaten by up to and including a neck in a specific race Paddy’ll refund your losing stake.

Just one greyhound cash back has come in in the last six months (where your dog failed to win but finished in the same place as it’s Trap number – top job Debbie’s Choice!).

While the only successful rugby cashback was on the England v All Blacks on Novemer 5, 2006 as Shaun Perry had to score a try on his debut. Well done Shaun!.

Five football bets have paid out in the last 6 months – they’re listed below:

(1) Christmas Cracker! Wigan v Chelsea 23 Dec, 2006 There were 5 or more goals in the match.

(2) Seventh Heaven! Rangers v Celtic 17 Dec, 2006 The last goal in this match was scored by a player wearing the number 7 shirt

(3) Booker Prize – Chelsea v Arsenal 10 Dec, 2006 Former Arsenal hero Ashley Cole received the first booking or the last booking of this match

(4) The Late, Late Show! 1st Weekend of the Premiership Paddy Power offered to refund all losing 1st/last goalscorer, correct score & scorecast bets on any of that weekend’s Premiership matches if there was a goal scored in injury time at the end of either half of that match.  – He refunded on West Ham v Charlton

(5) Boxing Clever! Celtic v Everton 24 Jul, 2006 The last goal was scored from outside the penalty area and so Paddy paid out again.

>>Visit PaddyPower Bookmaker for better betting value

Add comment January 29th, 2007