Introduction

Ever wonder why sportsbooks almost never show odds show -100? It’s because every bet you place begins with a built-in loss you never see, this is the ‘vig’ or ‘juice.’

Most sports fans assume this loss is unavoidable, but there’s another option many don’t know about: exchanges. Unlike traditional sportsbooks, exchanges let you trade positions directly with other players. And platforms like Novig go even further - letting you set your own odds, control your positions, and trade with no vig at all.

If you’ve ever wished you could play on a platform that felt like a sportsbook but gave you a higher chance of being profitable (10x more likely to be exact), this guide is for you. We’ll break down how sportsbooks work, how exchanges work, the key differences between them, and why Novig has become America’s #1 sports prediction market.

What is a Sportsbook?

A sportsbook is a service or platform that takes bets on sporting events and sets the odds themselves - they are currently the most popular way to bet on sports online.

When you use a sportsbook, you’re betting against the house, not other players. The sportsbook sets the odds for each game, match, or prop and takes a built-in fee, called the vig or juice, which ensures they make a profit over time. 

Pros of using a sportsbook:

• Wide selection of sports, games, and betting markets.
• Guaranteed liquidity which means you can always place a bet at the posted odds.
• Familiar online sports betting feel.

Cons of using a sportsbook:

• There is a vig: The built-in margin reduces your potential profits.
• Limited flexibility since you can only take the lines the house offers.
• You’re always betting against the house, not other players.
• Limits and bans are frequent: Winning or “sharp” players can have their bet sizes restricted or accounts closed.
• Many sportsbooks operate in only select states, so access is limited depending on where you live.

In short, sportsbooks are convenient and known, but the odds are designed to favor the house. They’re a good option for beginners or anyone who wants a simple, familiar way to bet, but they don’t give you the same control or flexibility that a peer-to-peer exchange can offer.

What is an Exchange?

Think of an exchange as a prediction marketplace where players set the prices. You’re not betting against the house, but instead you’re trading directly with other users. This means the odds are determined by the crowd, not the bookmaker.

Because the odds come from other players rather than a bookmaker, exchanges offer better pricing and more flexibility. Novig, exclusively, charges no commissions on winning trades, which means skilled bettors can keep more of their edge. 

Pros of using an exchange

• Better odds than a traditional sportsbook and no vig (only on Novig). 
• More flexibility so you can create or adjust trades to fit your strategy.
• Wider coverage for types of trades to place.

Cons of using an exchange

• Liquidity can be a problem because if nobody takes your bet, it won’t go through.
• It can feel more complicated for beginners compared to a sportsbook interface. However, this this doesn’t apply to everyone - apps like Novig are known to give the same feel as a traditional sportsbook.
• Odds can shift quickly sometimes requiring multiple fills to get your full stake matched.

In short, exchanges give you more control and can be more profitable if you know what you’re doing. They’re ideal for players who want to think strategically, trade positions, and avoid the built-in house margin that comes with traditional sportsbooks.

Side-by-Side Comparison

Understanding Legality

Exchanges have an advantage when it comes to legality. Traditional online sportsbooks need state-by-state licenses, which means they are only available in certain states and can leave many players out of luck. Sweepstakes exchanges operate under different regulations and are legal in a wider range of states, making them accessible to far more users. This means that even if your state hasn’t approved full-scale online sports betting, you can often still use an exchange to trade positions legally and take advantage of better pricing and flexibility.

Why Novig Stands Out

While there are pros and cons to both sportsbooks and exchanges, Novig stands out above the rest as America’s #1 Sports Prediction Market available pretty much everywhere. Novig uniquely delivers the benefits of a peer-to-peer exchange while addressing the typical downsides. With better pricing, more flexibility, and improved odds, Novig allows users to trade positions like a market rather than simply taking the house line. Furthermore, it eliminates common issues with exchanges, such as confusing interfaces and liquidity problems, making it accessible for both casual and experienced bettors.

1) Better Pricing and Odds

On Novig, you get better odds than traditional sportsbooks so you’re 10 times more likely to win in the long run. Since you are trading against other players instead of the house, the platform removes the built-in margin (vig/juice) that sportsbooks normally take. This means more of your potential winnings stay in your account, and skilled players can find real edges on spreads, totals, and player props.

2) Flexibility and Control

Novig gives users the ability to create, adjust, and hedge trades in real time. Unlike traditional sportsbooks, where you are limited to the lines they offer, Novig allows you to offer your own odds to the market, react to live game action, and take a more strategic approach. You get the benefits of a market-style platform without being locked into rigid or pre-set options.

3) No Limits or Bans

Novig does not restrict how much you can wager or arbitrarily limit “sharp” traders the way traditional sportsbooks often do. Instead of protecting their margins by cutting off skilled users, they allow everyone (casual or professional) to trade freely. This aligns with their market-making/exchange model, where pricing is driven by the market rather than by risk-managing individual traders.

4) User-Friendly Interface and Liquidity

Many exchanges can feel intimidating or confusing, especially for beginners. Novig solves this with a clean, intuitive interface that makes it easy to make trades, view market depth, and track positions. At the same time, the platform maintains strong liquidity in the 35+ states it operates in, so most trades are matched quickly and efficiently. This eliminates the frustration of unmatched or stalled trades that can happen on other exchanges.

Final Takeaway

In general, sportsbooks are a good fit for casual bettors or anyone who wants a simple way to place a wager. They offer a wide range of games and markets, a straightforward interface, and guaranteed liquidity, making them easy to use for beginners. Exchanges, on the other hand, tend to appeal to people who enjoy a more strategic approach and want an extra edge. Because you’re playing against other players rather than the house, there is no built-in vig, which means you keep more of your potential winnings. Exchanges also give you the flexibility to create and adjust trades in real time.

Platforms like Novig demonstrate how an exchange can combine better pricing with a user-friendly experience, making it easier for both newcomers and experienced players to explore this approach.

No matter which option you choose, the key is to set a budget, understand the rules, and treat betting as entertainment rather than a guaranteed source of income.

FAQ

What’s the main difference between a sportsbook and an exchange?

In a sportsbook, you play against the house and pay a built-in vig. In an exchange, you play against other players and usually keep more of your winnings.

Which type of platform is better for beginners?

Sportsbooks are simpler and easier to use. Exchanges are better for people who want more control and better pricing. Exchanges like Novig can provide the best of both worlds due to their simple user interface.

Can I use exchanges for professional basketball and NFL betting?

Yes. Exchanges like Novig cover major sports and let you trade positions in real time, keeping more of your potential winnings.

Are exchanges and online sportsbooks legal everywhere?

No. Sportsbooks need state-by-state licensing, so they are only available in certain states. Exchanges operate under different rules and are legal in many more states, which gives more people a legal way to play and take advantage of better pricing.