Glossary term
Vig (Vigorish)
The house edge built into market prices; how prediction markets and sportsbooks generate revenue regardless of outcomes.
Vig (Vigorish) is the house edge built into market prices, the reason the implied probabilities across all outcomes of an event sum to more than 100%. It is how prediction markets, sportsbooks, and exchanges generate revenue regardless of which side wins. Accounting for the vig is essential when judging whether a contract offers genuine edge, because it raises the bar a forecast must clear to be profitable. See Prediction Markets 101.