A sportsbook is a venue, usually online or in a brick-and-mortar building, that accepts wagers on different sports events. The wagers are made on the outcome of a particular event with pre-set odds that determine how much the bettor wins if the bet is correct. In addition to accepting bets, sportsbooks also mitigate the risks of losing money by taking other wagers that offset those they have on their books. With the power to take bets that counteract those they have on their books and the ability to price odds with a margin built in, sportsbooks are able to generate a profit over the long run.

The types of bets available on a sportsbook are varied, but some of the most popular include straight bets and spread bets. A straight bet is a simple wager on one outcome. For example, if you think the Toronto Raptors will win an NBA game, you would make a straight bet on them. Similarly, if you believe UFC heavyweight Francis Ngannou will win a fight against challenger Ciryl Gane, you would place a bet on him to win by TKO or submission.

Sportsbooks also offer a variety of spread bets to attract more customers and increase their profits. For instance, they can lay a number of points, goals, or runs in a match or game to balance out bets placed on either side. Spread bets allow bettors to win more than the actual expected victory margin, and they are often priced with a margin known as the “vig” or “vigorish.”