- 1 What Is Sports Arbitrage Betting?
- 2 If you don’t understand the principles yet, don’t worry – we’ve got you covered!
- 3 What Is an Arb?
- 4 How Can You Take Advantage of Arbing?
- 5 Why Do Bookmakers Dislike Arbitrage Bettors?
- 6 An Arbitrage Example
- 7 Tips for Beginners: How Can You Avoid Getting Caught when Arbing?
- 8 Conclusion
Arbitrage betting, otherwise called arbing, refers to something taken from the stock market and retail trading. In this case, arbitrage is the act of buying an asset in a market and selling it simultaneously in a different market at a higher cost. This difference between the selling and cost price of the asset makes it possible to guarantee a profit.
So how does arbitrage betting favour sports gamblers? Let’s take a look! This article will provide everything you need to know about arbing. Stay tuned!
What Is Sports Arbitrage Betting?
Arbitrage betting in sports is when a gambler covers all the possible outcomes of a sporting event to make a profit, no matter the outcome. This is done with different bookmakers and it’s possible because bookmakers have different opinions on the outcome of an event, so their odds usually differ. The advent of betting exchanges has made it possible for punters to place bets on outcomes, making it possible to practice arbitrage betting in sports betting. When carrying out sports arbitrage betting, punters shouldn’t just bet on any two bookmakers, but they should choose the ones that differ in odds enough to assure a profit.
Arbitrage betting simply involves betting on an outcome on one site at a higher price and betting on that same outcome on another site at a lower price. Arbitrage betting is often considered “Sure Bet” because it guarantees a win. To practice this type of betting, you need more knowledge than an average bettor would require. However, no need to panic, it’s easy to learn.
The difference between the odds given by these betting exchanges and bookmakers makes it easy for punters to make a profit and this is known as an arb.
If you don’t understand the principles yet, don’t worry – we’ve got you covered!
In this guide, we will be discussing two techniques that you can use in arbitrage betting. Moreover, you can get a better understanding of the concept in the example section.
What Is an Arb?
This is a term that is used to explain the arbitrage bet, usually from the point of view of matched betting. Arb in match betting can be bad for your financial account and can get you gubbed quickly. You might wonder what the word “gubbed” means. Let’s quickly take a closer look. Gubbing in match betting is when you have been banned from getting promotions.
How Can You Take Advantage of Arbing?
Finding the right opportunities is the best way to be successful in arbitrage betting. However, it is easier said than done – you need to put in some effort. This is beyond finding bookmakers with different odds which can guarantee you a win – you need to grab these opportunities as quickly as possible.
Arbing can be done manually if you have time to research various bookmakers to find several arbs on your own. While this can be difficult to monitor, investing in a betting software program that monitors arbing is your best choice. These software programs are not free, so you will be required to spend money to subscribe to or buy an arbing software program.
Which Is the Best Arb Finder?
As mentioned, punters can make use of software programs specifically designed to monitor and track arbing. The question most punters are likely to ask is: “Which arb finder do I use?”. Some of the best arb finder software options are listed below:
- Bet Burger
- Odds Monkey
Why Do Bookmakers Dislike Arbitrage Bettors?
Do bookmakers like arbitrage bettors? The answer is no. Let’s find out why in this section of the article.
One of the reasons bookmakers dislike arbitrage punters is that they do cost them some money. This is because punters that engage in arbing are usually in search of and take advantage of opportunities at the expense of the bookmakers. We might think that it’s biased for a bookmaker to ban a punter just for making money. However, we cannot deny the fact that these bookmakers are operating to make a profit and when you win, they will be losing.
However, we can’t blame these bookmakers because they considered it unfair to bet in a way that assures a win regardless of what happens during the event. When you win without arbing or by placing massive bets, you won’t have any problem with these bookmakers. They only frown at punters betting in a manner that absolutely guarantees them profits.
We might say that bookmakers are not supposed to worry about this concept since it’s very rampant in the gambling industry. But some bookmakers can lose massively if they are picked by several successful arbitrage bettors. To avoid this, bookies work with each other to identify such punters by sharing information and services. Most bookmakers will include this in their terms and conditions. Though they won’t call it arbitrage betting, it will be noted in their T&Cs that their betting services are only for recreational gamblers. Additionally, they will also mention that accounts associated with professional play will be restricted or banned.
You don’t need to be a professional arb bettor for these bookmakers to close your account. What bookies look for are gamblers that show arbing patterns (consecutive wins and large bets) to have their account closed.
An Arbitrage Example
If you still don’t get the concept of arbing, let’s take an example to give you a better understanding of what we have been discussing so far. In arbing, we need to first scan various odds from several bookmakers and when applying mathematical formulas to arbitrage situations, you will be able to determine how much money you should stake to earn a safe win. Below is an example to give you better insight.
Let’s suppose two football teams, Manchester United and Chelsea FC, are going to play next week. If you are using an arbing software program, the software program will be responsible for the following:
- Scan all odds for the match between Manchester United and Chelsea FC from several bookmakers.
- Define the very best odds from these bookmakers and apply simple arithmetics to calculate the sports arbitrage opportunities.
- After that, the program will select the most favourable bets and show you where you should bet and how much to get a sure win.
Let’s assume that after the odds scanning between the two teams, the program reported these odds for calculation:
|Manchester United||Bookmaker||Chelsea FC|
In the above example, let’s assume you want to bet on Manchester United to win with B1 and Chelsea to win with B2, then we will calculate the arbitrage percentage to ensure that we will make a profit. For each bookmaker, the overall percentage of the results in a bet will be greater than 100%. However, if two bookmakers have a different view on the result, then the overall percentage from several bookmakers should be lower than 100%.
To find the arbitrage percentage, make the following steps:
- Arbitrage % = ((1 / decimal odds for B1) x 100) + ((1 / decimal odds for B2) x 100)
- Manchester United Win: (1 / 1.3) x 100 = 76.9%
- Chelsea FC Win: (1 / 5.5) x 100 = 18.2%
- 76.9% + 18.2% = 95.1% (less than 100%, therefore an arbitrage bet).
After you have discovered a sure bet, you will need to find the profit you will make based on how much you intend to invest. For instance, if you are placing ₹1000 on the above arbitrage bet, then you will find out the profit using the formula below:
Profit = (Investment / Arbitrage %) – Investment
(₹1,000 / 95.1%) – ₹1,000 = ₹51.52 profit (from ₹1,000 stake)
Once you are done calculating the profits, the next thing you need to do is to break down your investment between both bets. The reason for this is to ensure that you are returning the same profit no matter how the game turns out. So you must use the correct stakes when playing, otherwise, one outcome will be more favourable than the other. Calculate your stake for each bet as follows:
- Individual bets = (Investment x Individual Arbitrage %) / Total Arbitrage %
- Manchester United Stake = ( ₹1,000x 76.9%) / 95.1% = ₹808.63
- Chelsea FC Stake = ( ₹1,000x 18.2%) / 95.1% = ₹191.37
- ₹808.63 + ₹191.37 = ₹1,000 total stake
Tips for Beginners: How Can You Avoid Getting Caught when Arbing?
As mentioned earlier in this article, bookmakers don’t like arbing and they usually look for ways to catch punters who arb. However, since they do not have a sure method of detecting an arbing bettor, you have a chance of getting away with it. If you want to get started with arbitrage betting and you don’t want to be caught, here are some tips you can adopt to avoid getting caught while arbing.
Round up your Bet to the Nearest Number
In arbing, you might need to place some strange bet size for you to make gains. For instance, you might be required to place ₹80.57 on a bet for you to make a profit. This can draw the bookmaker’s attention, so it will be better if you round up the amount to ₹81.
Wager on Occasional Parlay
Another criterion that bookmakers consider in order to determine if a gambler is an arber is the type of bet placed. If a bookie discovers that a punter only places bets on profitable events, they are likely to ban such a player. So to avoid this, you can stake on parlay bets occasionally to appear like a recreational bettor.
Don’t Deposit and Withdraw Money Frequently
When you become an expert at arbing, you might decide to use it as a source of income. Because of this, you might decide to start depositing and withdrawing frequently. Arbing bettors usually make huge deposits to fund their arbing and at the same time, they make huge withdrawals to enjoy their profits. This will only draw the attention of bookmakers to your account. To avoid this, it’ll make sense if you deposit and withdraw occasionally.
Use a Betting Exchange
Different from bookmakers, an exchange does not act in the same way. Instead, a betting exchange is a platform where punters can take either side of the bet. Here, one punter acts as a standard bettor and another punter acts as the bookmaker. Take note, though, that the betting exchange will collect a certain commission from the winner.
In some cases, the betting exchange will collect part of the commission from the losing side. One advantage of using a betting exchange is that they do not care whether you are arbing or not. The reason is that they make their profit regardless of how you place your bet. It’s highly recommended that you make use of more than one betting exchange for your arbing. On the other hand, you can make use of a betting exchange for half of your arb and a bookmaker for the other half.
Don’t Make Max Bet All the Time
One of the principles you can use to increase your arbing opportunities is to place high bets. This will let you take advantage of the assured profits. Nevertheless, this is another factor that bookies look for when trying to uncover an arber. If you place subsequent high bets, it’s likely you will get banned in no time. This does not mean you shouldn’t place high bets if you have a huge bankroll. However, you should not place high bets every time to avoid being flagged.
Spread Your Bet Across Several Bookmakers
Most punters might not like the idea of spreading their betting bankroll among several bookies – probably because of stress or other factors. However, if you can do this, it will make it difficult for you to be identified as an arber. We can’t deny the fact that most bookies will take action if they notice that you place suspicious bets on their sites every time. On the other hand, you will be perceived as a recreational gambler if your betting is more infrequent.
Avoid Betting on Smaller Markets
Smaller markets like daft, water polo, table tennis are more volatile. So, bookies can differ significantly on odds for these markets. Because of this, arbing punters can make more profits when they bet on small markets. However, when you bet frequently on these markets, bookmakers might suspect traces of arbitrage betting. To avoid this, you should shuffle your bets between small and large markets.
In this article, we’ve discussed everything you need to know about arbitrage betting and have provided useful tips on how to avoid getting caught. Now that you have an in-depth understanding of the concept of arbing, you can go ahead and start placing arbitrage bets!