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However, we live in an imperfect world where these probabilities are calculated differently by different bookmakers. Arbitrage betting opportunities can also arise when some bookmakers are faster than others at reacting to news which may impact the outcome of a sporting event.
If news is released of Real Madrid's star striker spraining their ankle in training and Bookmaker X takes 15 minutes to update their odds on the upcoming match, while Bookmaker Y updates within 2 minutes, there will be a 13 minute window where an arbitrage opportunity exists!
For those that are unfamiliar with how betting odds work, odds of 2. For an event where there are only two outcomes win or loss , odds of 2. However, in reality, a bookmaker needs to have an edge to make money they are a business after all! Considering that the bookmaker will always have a profit margin built into their odds, arbitrage opportunities are not possible by betting on all outcomes with a single bookmaker. The arbitrage opportunity exists between different bookmakers.
Tennis matches are a great example, as there are only two outcomes Player 1 wins or Player 2 wins. It is not possible for a match to end in a draw. Nadal has a strong record on the clay so he is a hot favourite. However, different bookmakers have different opinions on just how much of a favourite he really is. However, if we take the highest odds available for Nadal 1.
Best of all, it can all be done from home with just a computer and an internet connection! Whilst it is possible to find arbitrage opportunities by manually comparing the odds on multiple bookmaker sites for individual events, many traders prefer to use software that does all of the legwork for them. The software compares the odds with tens of bookmakers for thousands of sporting events simultaneously and alerts you when an arbitrage opportunity is found.
Upon hearing about sports arbitrage betting, almost everyone has the same reaction. Is it legal? We automatically assume that if there is a way to get money online this easily, it must be illegal! Quite the opposite, in fact. It is absolutely legal, as long as your country of residence allows online sports betting. You are simply placing bets with multiple bookmakers which is not illegal at all.
For more detail, see my country-by-country guide to the legality of sports arbitrage betting. After reading this, you might be wondering why everyone isn't taking advantage of arbitrage opportunities. Well, there is a good reason! Arbitrage profits are only 'risk free' in mathematics and computer simulations.
In real life, there are a number of factors that can put the arbitrageur at risk of taking a very real loss. Sports arbitrage betting is no exception to this. Incorrectly calculating how much to stake on each outcome can expose to you to potential loss. This can be alleviated by using online arbitrage calculators.
After placing your bet with one bookmaker, you may go to the second bookmaker to find that their odds have shortened lowered. The arbitrage opportunity may have disappeared, leaving you to either gamble on one side, or lock in a guaranteed small loss by backing the second outcome at the lower odds. After placing your first bet, you may find that your bet with the second bookmaker is not accepted. This is typically due to the bet exceeding the maximum allowable stake at that bookmaker.
The imbalance in stake between the two bookmakers can expose you to loss. The bookmaker can void your bet even after the match has concluded! There have been a number of claims of palp error by bookmakers in rather dubious situations ie. Less reputable bookmakers are more likely to void your bets.
In the case of a palp error, your stake will be returned to you. A classic example of this occurs in tennis. Tennis players can retire before the conclusion of a match if they are injured or otherwise have a reason to do so.
Occasionally, the arbitrage hunting software can mistakenly match the odds between two separate sporting events. This can result in 'false arbs' that don't exist in reality. Always double check the odds before placing your bets! To comply with money laundering laws, bettors must send documents such as passports or birth certificates to the betting companies to verify their identity before they can withdraw their winnings. If the betting company's servers are compromised by an external hacker, there is the risk of identity theft.
The most serious occupational hazard of a sports betting arbitrageur is having your account limited or closed by a bookmaker. Any punter that is winning too much or winning too often is liable to having their account limited or closed. Once this occurs, there is little that can be done to reverse it. Nenko from Church of Betting has an excellent article on some tips and tricks you can use to maximise the life of your soft bookmaker accounts! Sports arbitrage betting is a viable way to make a side income online by exploiting discrepancies in odds between various bookmakers.
While it won't make you millions, it can make you a decent amount of money. Each individual arb only results in a small profit, but by repeating the process many times over, you can enjoy a decent income from it. Decent working capital, a fast internet connection, arb hunting software and an attention-to-detail mindset are required to succeed in the world or arbitrage gambling.
Arbitrage betting can be combined with other tactics such as matched betting to further increase your profits. Sign up below! The most comprehensive, in-depth training on profitable sports betting available. Start earning an income online using the unique techniques in this free course. Any particular interests?
Check the boxes below before signing up! Disclaimer: This post may contain affiliate links. I will earn a commission if you choose to purchase a product or service after clicking on my link. This helps pay for the cost of running the website. How do these price differences arise?
There are a few possibilities. Different bookies might use different data to arrive at their odds. They might simply take different views on certain markets. The differences can even come down to pure chance — bookies are run by humans, after all. Plenty of simple judgement errors have been made on markets before, and this will continue to happen in the future.
However, when price differences present themselves, you need to identify them and use them to your advantage. The odds in the chart are exaggerated to indicate a point, but hopefully, you can see how placing multiple bets across bookmakers could potentially yield a profit Arbitrage betting on an exchange is even easier, because you can simply take all three results on that same platform. The key would be understanding how the changing odds prices could present you with a positive return overall when you take all wins and losses into account.
The main difference between that and an exchange is that the latter is peer-to-peer. If you try arbitrage betting with traditional bookmakers, your account on one or more of those sites may well be suspended. They make their money by charging commissions on each bet, so that — whether you win or lose — they still make money from winning side of the bet. The likelihood of being able to carry out an arbitrage strategy for longer, combined with the potential for higher returns, means most people choose betting exchanges for arbing.
Well, let me make this crystal clear — arbitrage betting is absolutely legal. There are no laws whatsoever forbidding it. One popular example is tennis — there are two competitors, and one of them has to win at the end.
When picking a football result, there are obviously three possible outcomes; home win, draw, away win. The odds at least on the markets you actually want to take, i. NOT over 4. Overall, a soccer arbitrage betting strategy — again, if you do it right — will still make you money over the long haul. Perhaps the best way to think of football arbing is as a long-term, low-risk investment strategy, which will result in a low-to-medium yield. Even if you might be thinking arbing sounds as close as it gets, there are still a handful of drawbacks.
That goes for both traditional bookmakers and betting exchanges. If one bookie realises their odds are way off, compared to their competitions, they might be fixed within minutes. Researching the games you want to bet on is easier said than done. Making big money in the long term from arbing is a little more complicated than just betting on El Clasico, the Manchester United vs Liverpool derby, and games of that ilk.
The biggest potential for profits is often found in more obscure matches, because the bookies have less of a feel for the teams, less data to use, and so on. Either way, it takes time. As I mentioned earlier, this is far from being a get-rich-quick scheme. You will have a whole series of different accounts in operation, each of which needs to be carefully monitored. With bookmakers, you know that all your arbitrage bets are going to get placed.
Those options are only useful if they can…be used! Every account needs money in it, ready to be used the moment you spot an opportunity. Finally, have a master sheet which tracks your overall performance, including monthly and total profits and losses.
Find the bookies or the exchange offering the best odds on each outcome, and place your bets. In turn, the bookies will alter the odds to correct their error and balance out the action. The answer is ultimately down to you. Make no mistake about it, however — arbitrage betting is a slow burn.
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