Vig (vigorish)
Last reviewed 2026-08-07
Vig (vigorish) — definition
The implicit edge a venue or counterparty extracts, usually via spread or fees. The reason 'efficient' markets still have costs.
On sportsbooks, vig is the gap between paired odds. On prediction markets, the analog is fees plus spread.
A market quoting 0.50/0.52 carries 2¢ of vig before you even consider fees.
Learn more: Kalshi fees explained: maker, taker, and withdrawals
See also
Frequently asked questions
What does vig (vigorish) mean in prediction markets?
The implicit edge a venue or counterparty extracts, usually via spread or fees. The reason 'efficient' markets still have costs.
How does vig (vigorish) work in practice?
On sportsbooks, vig is the gap between paired odds. On prediction markets, the analog is fees plus spread.
Sources & further reading
- CFTC — Event contracts explainedU.S. Commodity Futures Trading Commission
- Kalshi — how prices and settlement workKalshi
- UMA Optimistic Oracle documentationUMA Protocol
Last reviewed 2026-08-07 · CollegePredictionMarkets.com