Arbitrage Betting by taking advantage of variations in odds across bookmakers or betting exchanges, arbitrage betting, often known as “arbing,” is a strategy where you wager on every conceivable outcome of a sporting event. We will describe the operation of arbitrage betting, the associated hazards, its legal position, and offer some advice on how to be successful with this tactic in this tutorial.
What Is Arbitrage Betting?
Arbitrage betting involves backing and laying the same outcome on a sports event, capitalizing on the discrepancies between the odds offered by different bookmakers or betting exchanges. The gap between the two sets of odds is called the “arb.”
If you do it right, you’ll guarantee a profit no matter which outcome wins. The strategy does not require expert knowledge of the sport itself, but rather an ability to find opportunities where the odds are mismatched.
Back bet: Putting money on a certain result to occur.
Lay bet: Betting against the outcome occurring (through a betting exchange).
This can be done on fixed-odds platforms for the back wager and only on betting exchanges for the lay wager.
How Arbitrage Betting Works
Example 1: Horse Racing
Imagine a UK horse race where Red Rum is the favorite to win with odds of 9/4 (3.25 in decimal odds) at a bookmaker, while on a betting exchange, the odds for laying Red Rum are 15/8 (2.88).
Back Bet: Place a £100 bet on Red Rum at 9/4, where you stand to win £225 if Red Rum wins.
Lay Bet: On the exchange, you lay Red Rum at 15/8 for £113.64.
If Red Rum wins, you’ll earn £225 from the back bet but lose £113.64 on the lay bet, minus a 2% commission (which is £2.27), netting you a profit of £11.36.
If Red Rum loses, the back bet is lost, but you win £227.28 from the lay bet, minus commission, leaving you with a small profit.
This example demonstrates that, by calculating the correct stakes and factoring in commission, arbitrage betting can generate guaranteed profits, even if the margin is small. Over time, however, consistent profits can add up.
Example 2: NFL Betting
Let’s say you’re betting on a game between the New England Patriots and the Tampa Bay Buccaneers in the NFL:
Back Bet: You back the Patriots to win at odds of +175 for a $50 bet.
Lay Bet: You lay the Patriots to lose at +163 on the exchange, with a lay stake of $52.68.
Again, factoring in a 2% commission, you’ll end up with a guaranteed $1.63 profit either way, regardless of the result.
Is Arbitrage Betting Legal?
Arbitrage betting is legal, as it doesn’t involve any form of cheating or manipulation. It simply exploits the odds offered by bookmakers and exchanges. However, bookmakers don’t appreciate arbers because they consistently make profits, which goes against the bookmaker’s business model of expecting players to lose.
As a result, while arbing is legal, bookmakers may limit or close the accounts of players they suspect are using this strategy. Some bettors even get blacklisted, making it impossible to use certain sportsbooks again. Be mindful of the risks of account restrictions and closures when arbing regularly.
Risks of Arbitrage Betting
While arbitrage betting may seem like a foolproof way to make money, there are some risks involved:
Bookmaker Restrictions: If bookmakers detect arbing, they may limit your stakes or close your account.
Human Error: Miscalculations, especially in the timing or size of bets, can cause losses rather than profits.
Liquidity Issues: Not all exchanges may offer enough liquidity to place the lay bet effectively, or you may not be able to match your back bet fully.
Betting Exchange Fees: You’ll often need to pay commission on lay bets, which can eat into your profits.
Popular Arbitrage Betting Events
Arbitrage opportunities are more common in high-volume sports such as:
Soccer: The large number of betting markets and fluctuations in odds during a match or event increase the chances of finding arbing opportunities.
Horse Racing: Multiple outcomes in each race, along with frequent fluctuations in odds, make horse racing one of the most lucrative sports for arbing.
Niche or less popular sports can also present opportunities, but betting volumes are lower, which can make these markets stand out to bookmakers, increasing the likelihood of detection.
Tips for Successful Arbitrage Betting
Here are some tips to help you make the most of arbitrage betting:
1. Place Back Bets Offline
Placing bets in person at retail betting shops (also known as “sharbing”) gives you more anonymity. While you can’t lay bets offline, using retail shops for back bets makes it harder for bookmakers to track your activity.
2. Avoid Large Stakes
Betting large amounts of money in one go will raise red flags, especially if you typically place smaller bets. Instead, aim for smaller, consistent wagers that don’t attract attention.
3. Use Multiple Betting Accounts
To avoid detection, create accounts with multiple bookmakers. This will give you access to a wider range of odds and make it harder for sportsbooks to track your activities.
4. Mug Bets
To further disguise your activities, place occasional “mug bets”—bets on obvious favorites that are unlikely to win. This gives the appearance that you’re a casual gambler and can help prevent bookmakers from noticing you’re arbing.
Final Thoughts on Arbitrage Betting
Arbitrage betting offers a risk-free opportunity to make a profit, but it’s not without its challenges. While legal, bookmakers may restrict or even close your account if they detect arbing. The key to success is finding the right opportunities and using strategies to avoid detection.
By carefully calculating your stakes, utilizing betting software, and being strategic with your accounts and bets, you can maximize your chances of consistent profits through arbitrage betting.
Whether you’re a seasoned bettor or just starting, arbing can be a lucrative strategy—just remember to stay under the radar and always be aware of the risks involved!
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