Sports Just Arbitrage Betting; The Highway To Free Money Or Just A Fools Paradise?
Posted by: Charles Westing / Category: CasinoSports Arbitrage Betting, ‘Arb Trading’, ‘Sure Bets’ and ‘scalping’ all basically mean the same thing: the idea of realizing a profit from the fact that different bookmakers have different views about the statistical probability of a particular event happening.
Under normal circumstances, if you place a bet on both possible outcomes of a sporting event at one particular bookmaker, the odds are calculated in such a way that, although you are guaranteed to win, the cost of the bet will be more than the payout.
If you can find two bookmakers, however, who offer different odds for the same event, you might well be in the pound seats. You could then e. G. Place a bet that team A will win a certain match at one of the brokers, and place another bet that team B will win the match at the other broker. If you do your calculations properly, you can end up with a guaranteed profit of around 4% to 5%. Since bookmaking has become computerized, it has become much more difficult to find such opportunities though.
What follows is a very basic example.
Suppose you have two rugby teams playing next weekend. Bookmaker A has these odds: 1.10 on the visiting team and 8.00 on the home team. Bookmaker B offers different odds: 1.20 on the visiting team and 5.00 on the home team.
Now let us work out how much you’ll have to bet on every potential result to make a profit of $4000.
Bookmaker X:$7272. 80 on 1. 1 wins $8000,$1000 on 8 wins $8000
Bookmaker 2:$1666.70 on 1.2 wins $2000,$400 on 5 wins $2000
A quick look at the above calculation shows clearly that if you should both on both players at bookmaker X, the total cost would be $7272.80 plus $1000 = $8282.80. You will win $8000, but at a cost of 8282.80, resulting in a net loss of 282.80. Similarly, should you bet on both players at bookmaker Y the total cost will be $8266.80 with a guaranteed net loss of $266.80. Now you see how bookies make their money, don’t you?
The good news is, however, that you can still make a profit. If you placed a bet on the underdog at bookmaker A, it will cost you only $500 to make $4000. If you then go on and place a bid on the favourite team at Bookmaker B, that bid will cost you $3333.40. Total cost of both bids = $3833. 40. Guaranteed win = $4000. Guaranteed profit = $4000 – $3833.40 = $166.60.
Sports arbitrage betting might therefore sound complicated, but is in fact quite simple. The challenge is to study odds offered by potentially hundreds of bookmakers to find an arbitrage opportunity and then to act quickly to make use of that opportunity.
Apart from that you must also watch out that your betting costs don;t eat up all your profits. Too many withdrawals might well do just that. Very often there is a fixed cost involved with every withdrawal and deposit you make at a bookmaker. If you don’t watch out, this can soon eat up all your profits from sports arbitrage betting.
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