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Wiktionary
vigorish

n. 1 (context uncountable slang English) A charge taken on bets, as by a bookie or gambling establishment. 2 (context uncountable slang English) The interest on a loan of money, especially for loans made by a usurer or loan shark. 3 (context countable slang English) An amount owed on account of or payment of a bookie's charge or of interest.

WordNet
vigorish
  1. n. an exorbitant or unlawful rate of interest [syn: usury]

  2. a percentage (of winnings or loot or profit) taken by an operator or gangster [syn: rake-off]

Wikipedia
Vigorish

Vigorish, or simply the vig, also known as juice, under-juice, the cut or the take, is the amount charged by a bookmaker, or bookie, for taking a bet from a gambler. In the United States, it also means the interest on a shark's loan. The term originates 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, some bookmakers do not want to have an interest in any side winning in a given sporting event. Instead, they are interested in getting equal betting on all outcomes of the event. In this way, the bookmaker minimizes his risk and always collects a small commission from the vigorish. For this purpose, the bookmaker will normally adjust the odds or the line.

The concept is also sometimes referred to as the overround, although this is technically different, being the percentage the event book is above 100%, whereas the vigorish is the bookmaker's percentage profit on the total stakes made on the event. For example, 20% overround is vigorish of 16%. The connecting formulae are $v = \frac{o}{(1 + o)}$ and $o = \frac{v}{(1 - v)}$ where o is the overround.

It is simplest to assume that vigorish is factored in proportionally to the true odds, although this need not be the case. Under proportional vigorish, a moneyline odds bet listed at +100 vs. +100 without vigorish (fair odds) could become −110 vs. −110 with vigorish factored in. Under disproportional vigorish, it could become −120 vs. +100. A fairly common amount of vig is ~2%.

Usage examples of "vigorish".

I never heard the interest payments called vigorish before, but I always paid them promptly.

I met Murchison any number of times when I went to the office to pay the interest, or vigorish as you called it.

He had come up with the vigorish on schedule and had made two payments.

The Underbelly estimated that his vigorish must come close to a million a month.

Ill cut Sam and the Pension Fund in for 50% of my profits plus my payback and vigorish.