A sportsbook is a gambling establishment that accepts bets on sporting events and pays out winning bettors. A sportsbook can be physical or online. It makes money by taking a percentage of all bets won and losing. This is known as vig, or a cut charged by the sportsbook to cover operating expenses. Sportsbooks also make money through a system of handicapping that guarantees them a profit.
During an NHL game at Nashville’s Bridgestone Arena, DraftKings’ name flashed prominently on the Jumbotron as starting lineups were announced, and its logo was visible when crew members scurried out to clean the ice during timeouts. The Nashville Predators’ home arena is one of several locations where DraftKings has signed up to operate a sportsbook.
When it comes to betting, most wagers placed on a sportsbook are on teams to win or lose. Sportsbooks set odds for these wagers by calculating the chance of something occurring, such as a team scoring a goal or making a comeback, or a fighter going X number of rounds or doing the most 180s in a fight.
The most common way for sportsbooks to make money is through a commission on bets. This is often referred to as the juice, and it is taken out of winning bets. The sportsbook then tries to balance the action on both sides of a game so that it can earn the same amount of money from each bet no matter who wins or loses. Some sportsbooks also charge additional fees for certain types of bets, such as over/under bets.