A sportsbook is a gambling establishment that takes bets on different sporting events. They may be a website, a company, or even a brick-and-mortar building. Some states have legalized them, while others prohibit them. Some of them have strict licensing requirements, which are intended to protect the gambler. Some also restrict the types of wagers they accept, such as on high school and amateur youth sports.

Sportsbooks make money by paying winning bettors and collecting vig (vigorish), which is a small percentage of each losing bet. The vig helps cover overhead expenses and pay for things like payroll, software, and utilities. Ideally, a sportsbook will have enough cash flow to break even or come out ahead.

The odds for a particular game are set by a head oddsmaker, who uses sources like power rankings and outside consultants to determine the prices. These odds are based on a $100 bet, and they can differ based on how likely it is that either team will win.

Another way that sportsbooks make money is by offering props, or proposition bets. These bets are more risky and often have a lower payout than standard bets. However, they can increase the excitement of a game and offer additional ways to win money.

The legalization of sports betting has given rise to partnerships between the major sports leagues and sportsbooks. Although some players, such as the NBA, refuse to partner with a sportsbook, other leagues have seen that their brand value is strengthened by affiliation with these bookies. In addition, they benefit from increased media attention and sponsorship opportunities.