Sports 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.
If you should go to one specific bookmaker and place a bet on both outcomes of a particular match, the cost of the 2 bets will be more than the profit that you will make. Although the profit is therefore guaranteed, it will not cover the cost of the two bets. This is in fact how bookmakers make their money.
Should you be able to find two bookmakers who have different views about the outcome of a particular match, so they offer different odds, you might well be able to turn this to your advantage and make a profit by placing bets at both of them. You do this by placing the cheapest bet for a specific outcome at each one of them.
What follows is a very basic example.
Let;s say you want to bet on an upcoming tennis match. Bookmaker X has the following odds: 1.10 on the visiting player and 8. 00 on the home player. Bookmaker Y has a different opinion, and thus different odds of: 1.20 on the visiting player and 5.00 on the home player.
Our first step is to do a simple calculation. Let;s say you want to make $8000 profit from the bet.
Bookmaker 1:$1818.20 on 1.1 wins $2000,$250 on 8 wins $2000
Bookmaker Y:$6666. 80 on 1. 2 wins $8000,$1600 on 5 wins $8000
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?
Don;t despair. The possibility of a profit is still in the air. Let’s calculate what happens if you place the cheapest bet for each player to win at a different bookmaker. $1000 for the home player at bookmaker X, and $6666. 80 for the visiting player at bookmaker Y. The result is a win of $8000 against a total betting cost of $7666. 80 - resulting in a guaranteed net profit of $333. 20.
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.
There are however some factors that can have a negative effect on your profit, like high deposit and withdrawal costs, matches being canceled and currency exchange losses. If you have to pay a fixed amount every time that you make a deposit, or a withdrawal, making too many deposits and withdrawals over a period of time will eat away at your sports arbitrage betting wins and leave you with a very small percentage profit on your initial investment. You should read up on this before placing any bets!
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