How Sportsbooks Get Their Edge

A sportsbook is a gambling establishment that accepts wagers on a variety of sporting events. While some may still maintain physical shopfronts, most are now online and offer a wide range of betting options from classic horse racing to the big leagues of pro and college sports. Many also take wagers on eSports and pivotal world events, such as the Oscars or the Nobel Prizes. Additionally, a few have branched out into what is known in the industry as “novelty bets,” which range from royal baby names to the time when aliens will invade Earth.

A sportsbook offers odds based on the probability of an event occurring, and when it does, bettors are paid an amount that varies depending on their stake in the bet. In addition to the profit generated by correctly predicting outcomes, sportsbooks make money by charging a fee for accepting bets, which is called the vig (vigorish).

Sportsbook commercials are often backed by celebrities who promote the brand and bring it into popular culture. Aaron Paul, Jamie Foxx, and Rob Gronkowski are just a few of the big-name stars who have endorsed a sportsbook. This celebrity marketing helps to normalize sports gambling and encourages people to try it for themselves.

A successful sportsbook must be able to balance a large number of bets in order to stay profitable. To do this, they must be able to adjust the odds and offer different products. Understanding how sportsbooks get their edge can help you be a savvier bettor and recognize potentially mispriced lines.