Arbitrage betting is a technique that allows sports bettors to profit from discrepancies in the odds between different bookmakers. This can be done by placing bets on all possible outcomes of an event with different bookmakers, ensuring that no matter what the outcome, you will make a profit.
In this complete guide to arbitrage betting, we’ll explain how it works and show you how to use it to your advantage. We’ll also provide some tips on finding arbitrage opportunities and avoiding common mistakes. By the end of this guide, you’ll be an expert at arbitrage betting and ready to start making money from sports betting!
What is arbitrage betting?
Arbitrage betting (sure bets, or surewins) is a method of placing bets with different internet bookmakers to cover all possible outcomes of a sporting event to guarantee profits.
This is feasible due to bookmakers having diverse viewpoints (and odds) for the same event. Arbitrage betting exploits those differences to guarantee a profit regardless the outcome of the game or match.
Bookmakers set the odds in their favor immediately when a product is priced, known as the over-round, meaning if you put down a bet on all outcomes with one bookmaker, you will lose money.
The benefits of arbitrage betting
Arbitrage betting offers several benefits for sports bettors.
First and foremost, it is a low-risk method to make money since you are assured of making a profit in any event.
Arbitrage betting is a fantastic strategy to beat the sportsbook at their own game, as it exploits their opinions on how the outcome of a particular event could happen. Finally, arbitrage betting can be a wonderful way to guarantee a profit from sports betting without having to predict outcomes.
How does arbitrage betting work?
The key to Arbitrage betting is to find two bookmakers with different odds for the same event. For example, Bookmaker A may have Team X at 2.00 (1/1) to win a match, while Bookmaker B has the same team at 2.05 (21/20).
If you were to bet $102.50 on Team X with Bookmaker A, and $100 on Team Y with Bookmaker B, you would have a guaranteed profit of $2.50 regardless of the outcome of the match!
This is because your total potential winnings are greater than your total potential losses. In the example above, if Team X won the match, you would win $102.50 from Bookmaker A, and lose $100 from Bookmaker B, resulting in a net profit of $2.50. However, if Team Y won the match, you would win $105 from Bookmaker B, and lose $102.50 from Bookmaker A, resulting in a net profit of $2.50.
However, any potential arbitrage bets you may find the need to be acted on quickly because the bookies will adjust the price, and the opportunity may be lost. Arbing is about timing your arbitrage bets in the market and that requires tools to execute effectively.
Using an Arbitrage Calculator
Before placing any arbitrage bet you need to know what to stake at the individual odds, the quickest way to do this is via an arbitrage calculator.
This will save you time and long term will make you more profitable as you will find more arbs to profit from.
How to find arbitrage opportunities
The best way to find arbitrage betting opportunities is to use software that can scan the odds of multiple bookmakers and compare them side-by-side.
There are many Arbitrage betting software programs available, if you’re a resident of the United States we recommend that you take a close look at OddsJam which offers arbitrage bets as part of their suite of betting products and services.
Yes; it’s a paid service, but with the explosion of new sportsbooks in the US it is certainly worth taking the free trial.
The risks associated with arbitrage betting
While Arbitrage betting is a low-risk method to make money, there are still some risks associated with it.
The main risk is that one of the bookmakers may change their odds for the event, making the arbitrage opportunity no longer available. In addition, if your account at one of the bookmakers is closed or restricted, you may not be able to take advantage of the opportunity.
Bookmakers have a good handle on arbers accounts and can quickly close the down bettors if they suspect the bet being placed is to be an arb. Most seasoned matched bettors will have some kind or arbing as part of their overall betting portfolio.
Arbitrage bets on the Betting Exchanges
Arbitrage betting is also possible on the betting exchanges and one of the most common methods of arbing on the exchanges is scalping stable markets.
This is where you place a bet into the betting exchange at one price and a lay bet at a lower price, if both bets get matched then you have secured some profit on that outcome of the event.
This is not exactly risk-free as the market could move against you, so there is an element of gambling in scalping the markets as you’re not guaranteed a profit like with traditional arbitrage betting.
The secret is to look for markets where the prices are stable and if successful in finding an opportunity it could be extremely profitable as you can use this back and lay tactic multiple times.
Using trading software you can set up a simple script that will process all your bets automatically and manage your risk.