Sportsbooks include a margin (also called vigorish or "vig") to ensure a profit regardless of the outcome. This margin is built into the odds, which means the implied probability calculated from the odds will always be slightly less than 100% for all outcomes in a single event. For example, if a sportsbook offers odds of -110 on both teams in a match, the implied probability for each team would be approximately 52.38%, totaling 104.76%. The extra 4.76% represents the sportsbook's margin.
This margin ensures the sportsbook makes a profit in the long run, even if they accurately predict the outcome of individual events. When calculating implied probabilities, it's important to remember that these probabilities do not account for the sportsbook's margin and should not be used as a direct indicator of the actual chances of an event occurring.
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