Quote:
Originally Posted by atheist
Dumb question... what is vig, I see that used alot on these forums in regards to p2p transfers.
Short for "vigorish."
Traditionally, in the United States it refers to money paid to a loan shark. That is the dictionary definition, and it's the definition I grew up with. The word used to be common on the old cop shows on television when the police were going after illegal gamblers (usually bookies or loan sharks).
From dictionary.com:
vig·or·ish /ˈvɪgərɪʃ/ Show Spelled[vig-er-ish] Show IPA
noun Slang .
1. a charge paid on a bet, as to a bookie.
2. interest paid to a moneylender, especially a usurer.
More recently, vigorish can refer to any percentage that you have to pay in order to gamble, for example, in poker, the "vig" is called "rake" when it's taken from a cash game pot. The amount of a poker tournament entry fee that does not go to the prize pool is also called "rake."
Rake is generally the profit for the casino or poker room, but more recently, part of the rake is sometimes used to pay dealers or to donate to charities. All of the poker rooms in my city are for charity fund-raisers and the tournaments have a very high rake--20%, an amount that is set by state law. (It would be nice if I live withing 100 miles of a casino.)
From the first paragraph in the Wikipedia article:
Vigorish, or simply the vig, also known as juice or the take, is the amount charged by a bookmaker, or bookie, for his services. In the United States it also means the interest on a shark's loan. The term is Yiddish slang originating from the Russian word for winnings, выигрыш vyigrysh. Bookmakers use this practice to make money on their wagers regardless of the outcome. To minimize their risk, bookmakers do not want to have an interest in either side winning in a given sporting event. They are interested, instead, in getting equal betting on both outcomes of the event. In this way, the bookmaker minimizes his risk and always collects a small commission from the vigorish. The bookmaker will normally adjust the odds or the line, to attract equal action on each side of an event.
Later in the Wikipedia article, under the subheading, "Other Kinds of Vigorish":
Poker
In pai gow poker, a 5% commission charged on all winning bets is referred to as vigorish. Unlike baccarat, the commission is paid after each winning bet, either by the player handing in the amount from his stack of chips, or by having the vig deducted from the winnings.
In table poker, the vigorish, more commonly called the rake, is a fraction of each bet placed into the pot. The dealer removes the rake from the pot after each bet (or betting round), making change if necessary. The winner of the hand gets the money that remains in the pot after the rake has been removed. Most casinos take 5-10% of the pot, typically capping the total rake at $3 or $4.