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Sportsbook Advantage

Dear Mark,

When a sportsbook offers a promotion where you only have to lay $105 versus $110 on a $100 wager, what does the sportsbook advantage become?

Gary H.

Like your question states, typically when you place a point-spread bet, you lay $11 to win $10. This means that if you want to win $100, you have to wager $110, regardless of which team you are betting on.

If your bet wins by covering the spread, you will collect $210; your $110 wager, plus the $100 you just won. The additional $10 charged is the vigorish the sportsbook requires as compensation for taking your action on a sporting event.

When a sportsbook offers a promotion in which players only needs to add 5% instead of 10% to their point-spread wager, the sportsbook advantage when laying $105 is reduced to 2.38% versus 4.55% when your lay $110.

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