Arbitrage betting is a sports betting strategy that aims to guarantee your chances of winning. Sometimes called riskless profit, arbitrage allows you to place a bet on every possible result of a particular game. This way, you will never lose a bet, per se. At the same time, it will deliver guaranteed returns every time you place a bid. In this post, we’ll cover everything you need to know about arbitrage betting.
What is Arbitrage Betting?
Betting works on odds. In arbitrage betting, you place your bets on a unique mix of odds so that you have a guaranteed profit irrespective of the game’s result. However, the profit you make with arbitrage is long-term rather than an instant return.
Known by multiple names like surewins and miraclebets, arbitrage betting is legal. You can find different odds on different online sportsbooks. As an arbitrageur, you have to find the perfect mix of bets to maximize your profits. If you are placing bets for the first time, you can maximise your winnings by using it in conjunction with the 200% welcome bonuses available at some online casinos.
How does it Work?
Arbitrage betting is wildly popular among sports bettors for a reason. You do not need to have any in-depth knowledge about the sport. However, it is important to note that arbitrage betting requires experience and skill of choosing the right bets.
This type of betting works on the premise that there are discrepancies in the odds across different platforms. Every bookmaker prices their bets differently. This difference may not seem huge, but it can be significant enough for arbitrage betting. If you find a big enough price difference, then you can place multiple bets on a single game to cover all probable results of the game.
Say, for example, you are betting on a game between Team A and Team B. Two different betting sites have placed varied odds for the two teams. Betting site 1 gives higher odds for Team A to win. Betting site 2 gives higher odds for Team B to win. By simply buying the best bets on both platform you are guaranteed to make a profit.
Different Ways to Approach Arbitrage Betting
Finding bets with significant enough pricing discrepancies is the first step towards making a profit. This involves making a calculation to determine whether the difference in odds is suitable for arbitrage betting.
Using the above example, imagine you are placing your bets on Team A on betting website one and on Team B on betting website 2.
To find out if it is suitable for arbitrage betting, use the equation:
O1-1 + O2-1
O1 stands for outcome 1’s odds, whereas O2 represents outcome 2’s odds. In simple terms, this is the summation of the inverse odds for both the outcomes.
From the above example, you can put Team A’s odds on betting website 1 in O1. Then put the odds for Team B on betting website 2 in O2. When you put these values in the equation, you will get a number. If the sum of these inverse odds is less than 1, then this is suitable for arbitrage betting.
Risks of Arbitrage Betting
Arbitrage betting is undoubtedly lucrative. However, it also involves some risk, like every other for of gambling.
Some of these risks include:
- Lack of experience: This is certainly the biggest risk in arbitrage betting. Insufficient knowledge about odds, types of wagers, and bookmakers’ processes will greatly damage your chances of success. You need to have the necessary skills to assess the right bets and react to changing situations on the feet.
- Dawdling: In arbitrage betting, this term refers to the time delay between placing multiple bets. If you have placed a bet on one result and take too long to place the second bet, then you could end up losing out. Time plays a key role in arbitrage betting. Even the slightest delay can represent a significant risk.
- Mistakes by Bookmakers: No odds are fool-proof. You will find a clause on every sportsbook that gives the bookmaker the authority to cancel any bets that have erroneous odds. Therefore, if you place any of your bets on mistaken odds, then the bet may be cancelled. You will end up with no second bet, and this creates an obvious risk.
- Volatility: Booking odds constantly change. Therefore, you might miss out on profit if you fail to place the bets in time. Just like dawdling, the odds’ volatility is also a big risk factor in arbitrage betting.
Arbitrage strategy is a popular strategy in sports betting. One of the reasons for its popularity is the guaranteed returns it claims for every bet, although it is not risk-free. To be successful in arbitrage betting, you need to do your research, determine if odds are suitable for arbitrage betting, and be carefully of timing and other risks.