A sportsbook is a gambling establishment that accepts wagers on various sporting events. The company makes money by collecting bets and paying out winning bettors. It also takes a small fee from losing bets, which is called the vigorish or juice. Generally, this fee is 10% of the bet amount. The rest is used to pay winning bettors and ensure that the sportsbook is profitable.

The company that operates a sportsbook must be licensed by the state where it is located. It must also follow all applicable laws and regulations. In addition, it must offer a variety of payment options for its customers. Credit and debit cards are the most common methods of payment, but some sportsbooks also accept prepaid cards and other digital wallets. In addition, some sportsbooks offer cryptocurrency betting.

Another way that sportsbooks make money is by selling “futures” bets. These bets are made on future events and often have long-term horizons measured in weeks or months. For example, a person can bet that an NFL team will win the Super Bowl in the next season. In general, these bets have lower payouts than standard bets, but they provide steady income to the sportsbook.

A sportsbook must be careful when offering futures bets. They must avoid taking bets from people outside their state, since the Wire Act prohibits interstate betting. For this reason, online sportsbooks use geolocation services to verify that bettors are within their state’s borders.