A tool designed to eliminate the bookmaker’s profit margin (vig or vigorish) from betting odds allows for a calculation of the true probability of an event occurring. For example, if a betting market offers Team A at odds of +110 and Team B at odds of -110, incorporating the vig, this calculator adjusts those odds to reflect a 50/50 probability for each outcome after removing the bookmaker’s commission.
The significance of using such a calculation lies in its ability to provide a more accurate assessment of underlying probabilities. This is beneficial for identifying potential value bets, comparing odds across different bookmakers to find discrepancies, and developing more informed betting strategies. Historically, the concept of removing the vig has been crucial in arbitrage betting and advanced sports analytics.