Arbitrage Betting: How to use it in Sports Betting
By the time you are completely amassed with the concept of arbitrage betting and how to use it in sports betting, you will come to understand that arbitrage betting sort of nullifies the underlying principle of bet odds. The main reason for the existence of bet odds is to signify the probability for an event occurring, thus translating to how sure a win is guaranteed from corresponding bets. With arbitrage betting, the whole notion is reconfigured. Arbitrage betting operate on the principle that if you so will it, you can always win, game outcomes regardless. Too good to be true, right? Well, read on and find out!
- It’s not completely fireproof; not completely risk-free.
- It makes possible the concept of “guaranteed profit”.d
- It creates opportunities to always win your bets.
- It helps to understand how bookmakers set their odds though.
Arbitrage Betting: How to use it in Sports Betting
We devoted enough resources to explaining the difference between arbitrage betting and hedge betting in our article on hedge betting. The logic that drives arbitrage betting in sports betting is really not that of rocket science. The idea here is to profit off whatever outcome a game or sport event brings. How do we achieve this? By making a series of bets that adequately cover all possible sets of outcomes. If there are say nine possible outcomes that a game or sports event is likely to result in, it implies that a bettor planning to take away profit from his stake will consider arbitrage betting and make his bet in such a way that all possible outcomes are taken care of.
By way of definition, arbitrage betting simply defines the act of placing bets in such a way that all possible outcomes of a game or sports event are taken care of by a bettor’s stake or wager with the ultimate goal of a guaranteed profit.
One note of warning to bettors considering arbitrage betting for their future bets – well, not really warning but best practice:
It’s wise and more productive to get familiar with how bookmakers you patronize set their bet odds before you venture into learning and educating yourself on arbitrage betting strategy.
Before we dive into explanation proper with relevant, simple examples to drive home our points on arbitrage betting, let’s highlight some reasons why we even have arbitrage betting in the first place.
Reasons why Arbitrage Betting occurs
If the concept of bet odds lies on the fact that bettors cannot always win and take home profit from their stake on the game, and the logic behind arbitrage betting has it that bettors can always win their bet – more appropriately, they are always guaranteed profit in their bets – then why does arbitrage betting occur.
The reasons include but not limited to the following:
- Differing opinions among bookmakers: Well, it’s not like bookmakers gather around a table to reach a consensus on what bet odds to set and offer for a particular game or sports event. Each bookmaker does his assignment, mathematics, and calculation and comes up with his bet odds for games and sports event it offers. The implication of this is that there will always be differentials in opinions among bookmakers. In other words, bookmakers reach differing views regarding what the likely outcome of a game or sports event will be.
- Specific position taken by bookmaker or Promotion in play.
- A clear mistake by a bookmaker or simple adjustment of odds to have a balanced book: These last two points are self-explanatory.
Example Illustrations of Arbitrage Betting
The notion we emphasized for arbitrage betting is that all possible outcomes of a game or sports event must be covered to achieve that goal of guaranteed profit. Take for instance, in a tennis match, the concept of covering all possible outcomes will imply making two bets, where the first bet will for the first player to win and second bet for the second player to win. In a football match, however, it will be three different bets, wherein the first and second bets will be for each team to win and a third bet covering for a draw.
Covering all possible outcomes of a game or sports event with one bookmaker will not give you the arbitrage betting vibe. It will eventually still result in a loss. The bets on all possible outcomes of a given game or sports event must be made with different bookmakers offering different odds of same outcome.
Let’s illustrate that above italics, bolden point to make more sense. If your favorite bookmaker has decided to over bet odds for a tennis match, like bookmakers will do, definitely they have taken care of how they will get their own profit. So, your bookmaker offers this for a tennis game:
|Bookmaker A||Player A to win||@ bet odd -110|
|Player A vs. Player B||Player B to win||@ bet odd -110|
If you put a $200 bet on this game, betting $100 on each player to win, in the spirit of covering all possible outcome, you will end up with a $9 loss as you will be getting a return of $191 on your $200 total stake (both players can’t win, right?). That’s what you get trying to do “arbitrage betting” with one bookmaker. It doesn’t work that way.
If arbitrage betting were that easy, then, it wouldn’t make much sense the reason why will still have bookmakers operating today.
If you plan to eat and make money from arbitrage betting, you must have a good nose of smelling these arbs a thousand miles away. It’s no joke. It’s work, a bit. Now, let’s go back to using that same tennis match.
Let’s say you’ve now done your homework and came across another bookmaker with a differing look on this same tennis match. This second bookmaker thinks Player A their favorite to win. So, Bookmaker B has these bet odds to offer, compared to those offered by Bookmaker A above:
|Bookmaker B||Player A to win||@ bet odd -143|
|Player A vs. Player B||Player B to win||@ bet odd +120|
With a critical look at the bet odds offering of both bookmakers for this same tennis match, you will realize that arbitrage betting opportunities – also called arbs – have been created.
Without boring you with the long math involved (we’ll mention how to get to know about arbs with doing the long, boring math involved shortly), an arbs exists for you if you bet on Player A winning with Bookmaker A and you bet on Player B winning with Bookmaker B. Here’s the calculation:
|A $107 bet||On Player A with Bookmaker A @ -110 bet odds||You make $204.37 if Player A wins|
|A $93 bet||On Player B with Bookmaker B @ +120 bet odds||You make $204.60 if Player B wins|
How to locate them: Arbitrage Bets
The ugly truth is that arb is not something that is that easy to find. It’s easier said than done when it comes to arb. However, the concept today is to work smart and not really hard. Yes! That’s correct! Play smart, not necessarily hard! So, the implication of this is that there are resources at your disposal, that are already in place, that you can use to locate arb.
There are three prominent resources in this regard that have to continue to prove very useful. They include:
- Websites and Forums: Obviously those relating to sports betting;
- Fancy computer software, algorithms, and several alert services; and
- Your own quality research: For the Pros and gurus.
Where to get more Relevant Information?
If you’ve paid quality attention to the content of this article, you will understand the question that “what is not to like there in arbitrage betting?” With the examples we’ve using – there are lots more that time don’t permit us to use in this article – you now understand the opportunity that arbitrage betting affords you to make the best of your bets and make impressive wins. It should be noted that using arbitrage betting comes with its shortcoming as bookmakers are really not a big fan – I’m sure you get the why. As a result, some bookmakers put in place some penalty when they discover.
However, this doesn’t change the following facts among many others:
- There is that assurance of a guaranteed profit.
- All you have to do is fish out and have that good nose to locate arbs.
- You don’t have to do the hard math yourself to locate arbs. There are numerous resources around you for that.
- Read useful and rich information and educative content on concepts like this. If you are reading this page, you are already on the right path.
- Win always with arbitrage betting in your sports betting.
For more information and indispensable tips and guide for contents like this, visit our Sports Betting Comparison frequently and you will not be disappointed.