Betting arbitrage occurs in betting markets as a result of bookmakers’ different perspectives on event outcomes or mistakes. When the circumstances allow, a bettor can make guaranteed profits regardless of the outcome. This term can also be found under the name ‘sure bets’ or ‘sports arbitrage.’
You can do it by making one bet on each sporting event with as many bookmarkers as you want. Arbitrage happens when the implied probabilities of a set of odds, which indicate all mutually exclusive outcomes of an event, add up to less than one.
An arbitrage is sometimes referred to as an Arb. Bettors who take advantage of such an arbitrage betting strategy are called Arbers.
Arbitrage Betting Explained
Arbitrage is a trading strategy that takes advantage of price differences between two or more sports betting sites to guarantee a profit regardless of the possible outcome.
Arbitrage is a typical stock exchange technique in which a trader ensures a profit by purchasing stock at a certain price on one market and selling the same stock at a higher price on another.
Such a technique can be easily applied when it comes to using the benefits of the betting exchange market. As a result, you can make a profit even from your initial investment.
The outcome of the hypothetical match doesn’t matter as, regardless of whether you bet on a tennis match, soccer match, or football match, you will win in the long run.
The principle of arbitrage betting is similar for all types of sports betting, as the makeup of the betting exchange has very close similarities to that of a stock exchange.
Traditionally, sports arbitrage was carried out in secrecy by making bets at various high-street bookies. However, betting exchanges and internet betting have revolutionized arbitrage betting and eliminated the need for this time-consuming task.
How Arbitrage Betting Works
Sports arbitrage type of betting is simply placing bets on all possible outcomes for an event at odds that ensure a cash return, regardless of the outcome. Compared to gambling, which involves higher risks, this type of betting is a low-risk, medium-yield investment technique.
Let’s set an example to explain how arbitrage betting works.
When a sporting event betting platform offers to bet on an event, the possible outcomes of this event have odds. For this example, let’s imagine sportsbook A, which shows the bet on the match-winner for the NFL match between Dallas Cowboys and Pittsburgh Steelers.
The odds for Dallas to win are 2.06, and they favor Pittsburgh with odds of 1.91. If you would optimally cover both outcomes, the payout will be 99.11. This means you will get back 99.11% of your qualifying bet settlement.
On the other hand, that implies you will lose money with a value of 0.89%, e.g. it is less than what you had before you made a bet. That’s how bookies ensure that they make a guaranteed profit. Let’s take another example in which bookmaker B offers the same NFL match; however, their odds are different as they favor Dallas with 1.89 odds to win and odds of 2.1 for Pittsburg to win.
Sportsbook B offers a 99.47% payout for this match. Sportsbook operators do not agree with each other on odds and even who is the favorite in this match. Their disagreement gives players an arbitrage opportunity.
If you make an arbitrage bet on the highest odds available for the only two possible outcomes, in this case on sportsbook A for Dallas and sportsbook B for Pittsburgh, you would have a payout of 104%. This means that any bet amount to cover both these outcomes will give you a 4% profit.
In conclusion, if you place CA$300 on each side, you will get CA$624 outcome no matter which team wins the game. It may not seem much due to the small stakes, but that’s guaranteed CA$24 profit. If you repeat this practice ten times, you will have an extra CA$240 without much work.
How to Calculate Bet Sizes
To maximize your possible arbitrage betting profit, you should learn how to calculate arbitrage bets. Here we will show how you can calculate arbitrage bets so that you can grasp and thoroughly understand the math behind them. Moreover, you will comprehend why strategy is with low risk involved, whether you play on big or small stakes.
To do this correctly, make sure you do it between different bookmakers for the same event.
Calculating the bet sizes depends on several things. First, you should start with the sporting events. Then find the sports event you are willing to bet on. Make sure you enter a particular bookmaker that allows arbitrage betting as not each bookmaker site allows it.
Worth mentioning is that you might encounter a gambling platform where you can get a bonus bet. Free bets won’t change anything in your winnings strategy. On the contrary, bonus bets will help you out as you won’t have to make a deposit. This is the main benefit of free bet stakes.
Nonetheless, once you’ve found the match you want to bet on, go to another sportsbook to find the same game. Compare the odds to ensure they are different before you visit yet another sports betting platform. Compare the betting odds as much as needed before you start the deposit avalanche.
To ensure you will come out as a winner, go through the math to calculate bet sizes. The internet has an abundance of such calculators, which helps you find the final result of the odds-deposit math.
This way, even before making a deposit, you will know how much you will end up winning. Moreover, if you plan on doing this scheme, again and again, you will be sure of your winnings in the long run.
How to Calculate Profit
Calculating your profit can be an exhausting procedure if you do it on your own and by hand. Mathematics may be fun and easy for some people, but it surely takes a lot of time. Luckily, you can bypass this method as the internet is a God-given tool that can assist you in many ways. What we are talking about is the arbitrage calculator.
This tool is widely available in the online betting market. You can use it as a trial version or on websites that ask for registration. A standard arbitrage calculator is not very complicated to use. Even beginners will find their way as this tool is easy to navigate. Mainly, what you will see on the display of the arbitrage calculator are several segments.
The first one is where you should enter odds and stake. Here you are given three empty boxes, including Bet 1, Bet 2, and Stake. You can see the Stake and Payout fields with boxes aligned with the Bet 1 and Bet 2 boxes on the right.
Several additional buttons are included, such as the ‘More Bets,’ ‘Reset,’ and ‘Calculate’ on the left. On the bottom right, you will see fields including Total Payouts, Total Profit, and ROI. That is all the arbitrage calculator consists of.
Nothing too complicated is asked of the players except to input the necessary information. After clicking the ‘calculate’ button, they will immediately get the results. Another, simpler way to do this is by using some of the most sophisticated tools online. You can find more information addressing this subject in addition to this article.
Placing Arbitrage Bets With Exchanges
People new to betting – especially to matched betting – are sometimes perplexed as to the main difference between a traditional sportsbook like Coral, Paddy Power, or Bet365 and a betting exchange like Betfair, Smarkets, or Matchbook.
Although betting exchanges appear to offer the same options as a sportsbook, there are a few significant distinctions.
For starters, a betting exchange does not generate money in the same manner that sportsbook platforms do. Regular betting is when customers can wager on any outcome of an event, and bookmakers will lay the bet themselves, putting up their own money if the customer’s bet wins.
On the other hand, betting exchanges do not place bets themselves, instead of relying on other customers to back and lay bets against one another. To earn money, betting exchanges impose a small commission fee on each wager placed. This charge is calculated as a proportion of the expected winnings.
Arbitrage Betting Without Exchanges
In the simplest way possible, arbitrage betting, without exchanges, is just regular betting when you visit and register on a sportsbook platform and place your bet. This type of betting occurs when players make a deposit and place a bet on the matches they have chosen.
If they guess their prediction correctly and win, the operator pays them the money they’ve won. It’s called ‘without exchanges’ as you don’t get to exchange money with other bettors, as in the case of betting with exchanges.
Tools to Find Arbitrage Opportunities in Sports Betting
Numerous tools are designed to find the best betting opportunities for you. Such software is created to save up a lot of time. Instead of jumping from one sportsbook platform to the next, you simply push a few buttons. Hours and hours of work are packed within seconds.
There are trial versions of almost all of them. Some of these tools include RebelBetting, BetBurger, BetOnValue, and Arbing Software.
Although you will have results, this doesn’t necessarily promise that all of the best matches will be seen on your screen. If you want to dive deep into the arbitrage betting world, make sure to spend a loonie or two.
What is Line Shopping and How Does It Work?
Line shopping, in its most basic form, entails browsing the lines at as many bookmakers as possible to get the best odds for the teams or betting markets you want to bet on. Players get to enjoy a lot of benefits thanks to line shopping.
What it primarily does minimizes the loss of favorites. In the long run, this will save you some money, which will open more opportunities for even more betting. Line shopping also increases profit on underdogs. Again, this benefit will also improve the cash balance on your betting accounts. Regardless of your gameplay, line shopping is highly beneficial, which is why many players utilize this strategy.
What Are Price Boosts and How Can They Help You Make a Sure Bet?
Price boosts are commonly enhanced and improved odds offers used by sportsbook operators to entice clients to place bets with them.
These are used by a number of the most prominent gambling platforms, albeit they go by different names. In a football market, an example of a price rise would be Alexis Sanchez to score first with odds increased from 5/1 to 7/1.
This article explains why sportsbook platforms utilize price spikes and how matched bettors might benefit from them.
Arbitrage Betting FAQ Section
Is arbitrage betting legal in Canada?
Arbitrage betting is legal in Canada as the authorities didn’t find a reason to make it illegal. This is due to players not doing anything wrong as they simply place a bet on some (or in this case, many) online betting platforms. The procedure doesn’t break any law, which is why Canadian players are taking advantage of this strategy to the fullest.
Is there an arbitrage betting software that I can use to make sure bets?
With a 1-minute search on Google, you will be able to find arbitrage betting software that will provide bets that are more likely to make you a winner. If you do that on your own, you will need a lot more time compared to if you do it with the software.
How do I calculate the arbitrage percentage for a sure bet?
You don’t have to do this yourself. There are online generators and various tools and software that do it for you. All you have to do is search for one, input the minimum or maximum stake, maximum or minimum odds, add the value of your deposit, and click to calculate. Since this is a math-based ‘problem’ there is not much room for mistakes as software today is so sophisticated that it doesn’t make mistakes.
Is arbitrage betting riskier than normal betting?
No, it is not. Arbitrage betting is, in fact, a much safer type of betting as you can calculate how much you can profit before you place your bet. Calculating the odds is the key segment you must go through if you want to come out as a winner. Although the prize is not an eye-popping one, doing it multiple times will make all the difference.
What is an arbitrage scanning service?
Arbitrage scanning service is a software scanner that collects data from bookmakers’ lines, evaluates it, and provides the results. As an outcome of this, service programmers build what are known as parsers.
How does match betting work with arbitrage betting?
The match doesn’t make any difference if you want to arbitrage betting. The main distinction is the different odds and how deep you are willing to dig in your pocket. Finding more suitable odds while making huge deposits will pay out more rather than picking a random match and depositing for the sake of order.