Arbitrage betting is a popular strategy in the world of sports betting. If you’re a seasoned bettor, you have most likely tried this strategy. Read on as we discuss more arbitrage betting, including what it is and its pros and cons.
An Overview of Arbitrage Betting
An arbitrage bet sometimes called arb is a strategy that you use to beat your bookmaker. In its simplest form, this is a bet where you place two or more bets on a similar event using more than one sportsbook. The strategy helps you to have a risk-free return. Usually, that’s because one or more of the selected outcomes might go your way.
Generally, this is possible because bookmakers have varying odds for a similar event. Sportsbooks don’t have to use a standard formula to calculate odds or lines. Hence, it’s up to them to decide the odds to give for each event. As such, when they are out of sync, arbitrage becomes possible. Overall, it’s a great strategy to grow your bankroll and earn risk-free cash while enjoying sports betting.
Arbitrage Betting Opportunities
You will get an arbitrage opportunity when various bookmakers fail to calculate probabilities well. Several things can lead to this, including:
- Setting very high odds. The sports betting industry is very competitive. So, bookmakers do everything possible to thrive in the market, including having competitive odds. You can take advantage of this by finding sportsbooks with high odds. Next, you will place wagers on all possible outcomes.
- Failing to react to live events fast. In sports like tennis or basketball, odds might change several times in a minute. That leaves bookmakers with little time to change odds, especially if they are not keen.
Usually, arbitrage chances can be from a single bookmaker or due to odds difference for the same activity across several sportsbooks. Below is an illustration of how you can take advantage of arbitrage opportunities.
An Illustration of Arbitrage Betting
To a beginner, this strategy might sound complicated. So, below is a breakdown to help you understand.
Now, let’s assume you bet $200 as shown below:
- A1 – $50
- A2 – $70
- Y – $80
So, assuming a positive outcome, you will receive a profit for any of the three outcomes, as follows;
|Profit if A1 wins
|5 x 50 – 210
|Profit if A2 wins
|4.5 x 70 – 210
|Profit in case of a draw
|4 x 80 – 210
Essentially, to identify an arbitrage opportunity, you need to regularly monitor the odds using automated or manual solutions. Several sites can help you do that in case you don’t know where to start.
Tips for Arbitrage Betting
For this part, we shall look at some strategies you can use to make arbitrage betting more rewarding.
Place bets on events with more than one outcome
Generally, events with two or more outcomes give the best scenario for arbitrage betting, providing better chances for winning.
Do your research
Sometimes, the industry gives arbitrage opportunities. However, you should be on the lookout for more possibilities if you want to maximize your arbing opportunities.
Use reputable automated software
If you decide to use software, use one that is tried and tested since it gives you an actual win percentage.
Always counter-check your calculations
If you want to do arbitrage by yourself, ensure you have the right figures and formula. Any slight mistake will, most certainly, result in losses.
Always keep your account funded
You never know when an opportunity will present itself. Therefore, to ensure you don’t miss out on any chance, keep your account with money ready for betting.
Pros of Arbitrage Betting
The advantages of placing this bet are straightforward.
- First, it allows you to make risk-free money for every successful bet. Simply put, it has guaranteed profits.
- Arbitrage betting requires no advanced skills or sports knowledge to understand how it works.
- The industry has several arbing opportunities. Arbitrage betting sounds so good that you might think opportunities are few. The reality, however, is that there are many arbs.
- There are several resources you can use for arbitrage betting.
Cons of Arbitrage Betting
While this type of betting is an excellent choice, it has a share of drawbacks.
- Practicing arbitrage wagering might take the fun part of sports betting.
- In some cases, the odds can change before you place your bets. Arbitrage chances don’t last long, so you must be fast if you are to lock in some risk-free returns.
- Lastly, and perhaps one of the biggest cons, some sportsbooks might place limits on gamers who win sums of cash. If this happens, you will lose the entire amount since most websites restrict arbitrage betting.