Arbitrage betting which is also known as “arbing” is a betting system that allows you to make a profit regardless of the selection you’re betting winning or losing the sporting event. It leverages price differences between bookmakers to guarantee a return on your investment. For punters looking for a low risk approach to betting, “arbing” can be an appealing option but it requires discipline and good timing which means you need a solid understanding of how it works.
In this blog we will give you a breakdown of how it works and provide tips to get you underway.
What Is Arbitrage Betting?
Arbitrage betting entails betting a selection at a bigger price than the one you’re laying back at so having a betting exchange account is essential when it comes to laying it back (buying insurance).
For example betting a horse at 5/2 or 3.5 with a bookmaker for £100 you’d then look to lay back at 2/1 or 3.0 on the exchanges to lock in £50 gross profit if it won. £100 at 5/2 wins £250, laying £100 at 2/1 loses £200 so that’s how you get that £50 margin.
Making a profit regardless of the outcome
This is where it gets slightly more complicated as I’ll now explain how locking in a profit regardless of whether your selection wins or loses.
Horse ‘A’ you bet £100 at 5/1 with a Bookmaker which you predict is going to shorten in price so going to the exchanges and laying it back at 5.0 or 4/1 for £120 which equals £480 would mean you’d lock in a gross profit of £20 with no risk. Your outlay for this formula would be £580 so its 3.44% ROI.
More risk but more reward option
This is where the idea is to beat the market or in other terms betting a selection at a bigger price than the SP but letting it run. When you continue to do this over a period of time you will make a profit as you’re betting the market. £100 at 5/1 which goes off at 3/1 is a 40% in odds advantage which bookmakers don’t like as they know you’ll win long term if you stay disciplined.
Benefits of Arbitrage Betting
- Guaranteed Profits: Proper execution ensures a profit regardless of the event’s outcome.
- Risk Management: Arb betting eliminates or massively reduces the uncertainty of traditional betting.
- Scalability: Once you master the process, you can increase your stakes and capitalise on more opportunities.
Challenges of Arbitrage Betting
- Account Limitations: Bookmakers monitor accounts for patterns indicative of arbitrage betting. Winning consistently or placing unusual bets might result in account restrictions or bans.
- Odds Movement: Odds can change quickly, closing arbitrage opportunities before you’ve placed all your bets.
- Errors in Calculation: A miscalculation in stake distribution or failure to account for fees can turn a guaranteed profit into a loss.
- Time-Intensive: Finding and acting on opportunities requires constant monitoring and quick decision-making.
Tips for Successful Arbitrage Betting
- Use Arbitrage Tools: Invest in software or platforms that identify opportunities across multiple bookmakers to save time and ensure accuracy.
- Diversify Bookmakers: Open accounts with multiple reputable gambling sites that accept credit cards to access a wide range of odds and deposit options.
- Start Small: Begin with small stakes to familiarize yourself with the process and minimize the impact of mistakes.
- Monitor Accounts: Avoid patterns that might alert bookmakers, such as consistently betting on specific outcomes or withdrawing winnings frequently.
- Understand Fees: Account for betting exchange commissions, transaction fees, withdrawal charges and currency conversion rates, which can all potentially eat into your profits.
- Avoid Detection: Potentially look into using gambling sites without verification requirements, so you run less risk of being detected and having your account closed.
- Stay Disciplined: Avoid overextending your bankroll and stick to the calculated stakes.
Is Arbitrage Betting Right for You?
Arbitrage betting isn’t for everyone. It’s best suited for those who:
- Have a sharp eye for detail.
- Are comfortable managing multiple bookmaker accounts.
- Have the patience to identify opportunities and act quickly.
- Seek consistent, low-risk profits over time rather than high-risk, high-reward bets.
Conclusion
Arbitrage betting is a strategic way to capitalize on odds discrepancies and guarantee profits in sports betting. While it requires effort, discipline and careful planning, the rewards can be significant for those who commit to mastering it. Once you understand how it works and have prepared accounts with non UK betting sites and exchanges, you can unlock the potential of this low-risk betting strategy. Happy arbing!
