Betting Guide » Online Betting Tutorial
Arbitrage Betting
Understanding all the factors of Arbitrage Betting
An Arbitrage Bet is a situation that occurs when contrasting odds are being offered for the same market across different bookmakers, allowing punters to back all outcomes of a particular match/event and still make a profit. Put simply, an arbitrage bet is a ‘sure bet’ where your guaranteed a profit.
While such a situation is rare, arbitrage bets can occur, and if punters can get onto it early enough they can make a sure free profit no matter the result. In a market like Football, for example, where there are three outcomes (Win, Draw, Loss) or Tennis where there are two outcomes (Win, Lose), bookmakers will offer varying odds for each market. However, an arbitrage will occur when you can back each outcome of a match with multiple bookmakers and take the highest prices offered.
Take the following example of an arbitrage that could occur in a Tennis match:
Roger Federer - $1.90 at Centrebet, $1.70 at Sportingbet
Andy Roddick - $2.10 at Centrebet, $2.30 at Sportingbet
Here we see that Roger Federer is favourite with both Centrebet and Sportingbet, while Andy Roddick is at longer odds with both bookmakers. Now assume you have a bankroll of $1000. The above market is an Arbitrage, so by placing $547.62 on Roger Federer at Centrebets odds of $1.90 and then by placing $452.38 on Andy Roddick with Sportingbets odds of $2.30, you would get a return of $1040.47 on your initial $1000 regardless of the result.
Bookmakers are well aware of arbitrage situations and will limit the occurrence of it happening as best they can, but the best time to find an arbitrage is early on before prices have yet to be adjusted. There are many ways to find an arbitrage bet such as using an odds comparison sites, message boards, or even signing up to a service which will find them for you. Arbitrage betting is not all risk free though however, there are several things you need to be well aware of if you wish to do it. Below are some factors to be very careful about when arbitrage betting:
Void Bets
Bookmakers have rules for ‘Palpable errors’ to cover themselves from mistakes, so if you have placed a large wager with a bookmaker in one leg of your arbitrage, you could be left with large bets in the other legs of your arbitrage aswell if the bet at one bookmaker is deemed void.
Volume
The mount of money you wager on each bet is of particular importance. If your only wagering $100 on each arbitrage the profits would be very small, however if your wagering up to $10,000 on each bet then your profits will be significantly increased. The timing of each bet is important too, because if you get in early before a price changes you stand to profit more yet again.
Money Management
To successfully bet with arbitrages, you will need multiple accounts with bookmakers. At least over 10, but 20+ would be an ideal amount, this way you can take advantage of discrepancies in prices immediately with bookmakers as they occur. You also need to be able to move your funds around as quickly and freely as possible.
Dodgy Bookmakers
You also need to be careful of bookmakers with a bad reputation. Some bookies may have issues with paying out winning bets, or may take some time in moving funds around. To be successfully with arbitrage betting you will need to be aware of this.
