When something is described as “risk free betting” or “sure betting” — it’s going to turn A LOT of bettors heads. That’s exactly what we have here with arbitrage betting. It’s a form of betting where profits are made not from actual picks, but though the mere act of betting itself. Huh?
We know that can sound weird, if not outright scammy, but give us a few minutes of your time to explain what is arbitrage betting. We assure you it’s legit, but at the same time, it’s not for everybody. In this betting guide, we’ll do our best to break it all down for you.
Setting betting lines for games or events isn’t an exact science. This is why sometimes you’ll see discrepancies from sportsbook to sportsbook on the same event. One bookies will have the odds at, say, +120, but another sportsbook will have that same event at +130.
Arbitrage betting exploits this discrepancy, no matter how small they may be. An arbitrage bettor would lay down bets at those two sportsbooks (or possibly more) and guarantee themselves profit based on the odd differential alone.
There is no need for an arbitrage betting calculator here, bettors just need dedication, time, and practice to find success. While there is a broad range of betting strategies out there, arbitrage is certainly one of the best when it’s done right.
The bigger the bankroll the bettor has, the more effectively they can arb bet. It’s like hedging, except in this case, the user is wagering on all outcomes at the same time. It differs from hedge betting, as you set yourself up to make a profit no matter what – but this isn’t for the faint-hearted!
The reason Arbitrage betting is possible is solely based on the fact each sportsbook assigns their own odds to events. Through these slight indescrepencies bettors are able to make huge profits. Top online betting sites, will always offer their own version of vegas betting odds, as they have their own team of oddsmakers.
However, in order to find success bettors must be willing to go line shopping. Line shopping involves looking through the various betting options available and trying to find errors in the odds. Another reason arbitrage betting exists is because all bookmakers have different opinions on the probability of events, so line shoppers should keep an eye out for this. And finally, something we discussed in our guides before, bettors are always adjusting odds in order to attract equal action on both outcomes, which presents another opportunity.
The third point is the most common thing to look out for when line shopping, as this happens all the time on all kinds of betting markets. Much like matched betting, it’s all about taking your time being patient and looking for opportunities to pounce on.
People often wonder how is arbitrage betting legal – and understandably so, as it’s so easy to recognize using American odds, it seems unfair. Simply put, there are two quick ways to spot arbitrage betting opportunities:
We explained before the value of calculating implied probability and it’s particularly valuable when trying to arb bet. Alternatively, simply looking for a market where the positive (“+”) odds are higher than what is displayed as the negative (“-”) odds, there is an opportunity available to users.
Let’s use a brief example to clear up any misunderstandings that may have popped up so far throughout the article. So let’s say the Mavericks are facing the Suns and you see the following odds:
In this situation, a bettor could place $100 on both teams and if the Mavs win at Sportsbook 1, they would make $110, and lose $100 on the other wager. If the Suns win at Sportsbook 2, the bettor would net $110 and lose $100 on the Mavs. This will ensure the bettor receives a profit of $10.
This is an unlikely event, as finding a guaranteed 10% profit via arb betting is a rarity. However, margins are more realistically somewhere between 1-5%, meaning that bettors have to wager a lot of their bankroll to see sizeable profit – much like we saw with hedge betting.
For a seasoned bettor with a huge bankroll to play with, profits are going to be higher as they can lay down bigger bets. It’s all about steady calculations and sticking to the methodology, this will bring in the profits.
