Arbing, as it is known to many, has been developed from the stock market. It follows a rather simple concept. If two services have differing opinions on what something is worth, the consumer will choose whichever suits them most.
The word arbitrage translates to the same product or service being attained twice but via two different providers. So two bets but different sportsbooks in simple terms.
Betting on the arbitrage has a few appealing factors attached to it. If you’ve never heard the term and are here to find out more, you’ve come to the right place. We’ll break it down so you know everything there is to know about this betting strategy.
By definition, arbitrage appearing on betting markets is due to either bookie’s differing opinions on event or contest outcomes or errors. In some unique instances, punters have managed to find a way to make this work for them, by placing bets on either outcome at two different sportsbooks. A sneaky way to ensure a win-win scenario.
What is arbitrage betting?
Arbitrage betting covers all possible results of a sporting event to try to make a profit no matter what the outcome. This strategy is made possible thanks to bookies providing competitive, but not always identical odds. You can take advantage of these discrepancies with arbing.
An arb is the discrepancy in odds between the bookmaker and the exchange. There are even arbing apps, like OddsMatchers, that can be used to detect these arbs.
Relayed in simple terms, you’ll place a bet on a sports event at one sportsbook, likely for a higher price, and bet against that outcome at a competing sportsbook. Then you sit and wait for either outcome, and whether or not you’ll pull in some winnings. In this way, many punters describe arbing as ‘risk-free’ betting as you’re always ensured a profit. European punters commonly refer to arbing as ‘pure bets’ because of this winning strategy.
Can I make a profit with arbitrage betting?
Arbing looks like a quick way to cash in big, but it’s consistent and steady winnings you want. Many arbitrage bets rarely offer over 5% in profit, which makes sense because otherwise, everyone would be using this strategy.
The real way to make decent profits with arbing is by placing multiple bets, placing bets of significant value, and the size of the arb you’ve chosen. By having multiple accounts with various sportsbooks, you’ll be able to keep up with any arbs between them. As mentioned, you can also use arbing software to assist you in finding appropriate arbs.
The Pros of arbing
- You can’t lose. When used correctly, arbitrage betting still ensures compensation regardless of an event result. Thanks to you having bet on either outcome, you’ll be guaranteed some winnings.
- There are zero risks involved.
Unless you wager amounts you cannot afford in your bankroll, arbitrage betting incurs no risks in the process. You essentially bet to back yourself up and receive a profit in either outcome. This is the no-risk aspect that so many punters love.
- Arbitrage software exists.
You can try and find the arbs yourself if you’re up for a challenge. Considering there are hundreds of opportunities every hour, you might as well use some arbing specific technologies to help yourself.
You can use a simple arbitrage calculator to calculate how much you need to bet against your bookie bet for your arb of choice. You can even predict your profits using this calculator and place more informed arbitrage bets.
- Arbing keeps things competitive.
This unique betting strategy ensures sportsbooks aren’t trying to take too much advantage over their punters. Arbs across the industry will continuously drive sportsbooks to provide the best, most competitive odds possible to keep punters coming again and again.
- You can add a third outcome.
If you’d like to up the ante a little, you can include the third outcome of the event – a draw. Here you can wager on two results of the game plus a draw. This could be another way you’re guaranteed a profit.
The Cons of arbing
- You need to be consistent with arbing.
To make real money and significant profits with arbitrage betting, you need to develop your strategy into a consistent one. Choosing your abs carefully and assessing which are worth the risk.
- You need to be willing to bet big.
To make some significant winnings, you need to make some significant bets. In this way, arbitrage betting can be quite pricey, especially to make it a long-term strategy.
- Most sportsbooks won’t offer massive profit opportunities with arbitrage betting.
As we said, it looks like an easy way to make some money fast, and if that were the case, it wouldn’t fare too well for anyone. Bookies are still out to make money at the end of the day, so don’t look to arbitrage betting as your quick fix.
- Arbs are continually changing.
No two arbs will remain the same throughout the day, so you have to be quick. Odds are fluctuating and changing every hour of every day, and so do the arbs. When you’re deciding on which to bet, be sure to make your selection and place your bets quickly before the arb changes.
- Arbitrage betting limits
Bookies, of course, don’t like punters getting the better of them. So if you become a frequent arbitrage bettor, you might see some reaction from the sportsbook you hold an account with. This might incur some penalties like promotional or stake restrictions.
- There are still sportsbook fees you need to pay.
Just because you’re playing an arbitrage bet doesn’t mean any of the payment terms and conditions aren’t valid. Be sure to check your relevant sportsbooks terms and conditions, especially for wagering requirements of promos as well.
- Finding the ideal sportsbooks
You need to source at least two different sportsbooks that offer arbs that have significant enough differences to take advantage of.
Arbing is a fun way to introduce yourself to the world of sports betting. With a risk-free approach like this, you’re always certain to make a profit. Beware though, it’s not as easy as it appears to be.