Many people may have heard of something called an arbitrage bet, often referred to simply as an ‘arb’. In simple terms, an arb is a betting strategy that allows you to back different outcomes at varying odds to guarantee a no-lose situation. Essentially, it’s a way to place bets where you are in a position where, regardless of the event’s outcome, you make a profit. However, it’s important to note that this method is tricky, risky, and difficult to execute, making successful arbitrage betting quite a challenge. If it were as easy as it sounds, everyone would be doing it, consistently landing profitable arb bets.
When you place a regular bet on a sporting event, you’re typically cheering for one outcome while the bookmaker hopes for the opposite. You place your money, and while you may feel confident in your selection, there’s always the chance it could lose, meaning the bookmaker takes your money. Arbitrage betting removes this risk, positioning you in such a way that you are guaranteed not to lose any money. This is why bookmakers are not fans of arb betting and tend to limit or close accounts of bettors who use this strategy frequently. If executed correctly, an arbitrage bet puts you in a guaranteed win situation, no matter the result of the game, simply by exploiting the odds discrepancies between different bookmakers.
The challenge with arbitrage betting is that it’s becoming increasingly difficult to place these bets, as bookmakers have become more aware of the strategy. However, one factor that still works in our favor is the rise of new online bookmakers, all competing for our business. To attract customers, these bookmakers sometimes offer standout odds on major events, keeping arbitrage opportunities alive. While many bookmakers are attempting to clamp down on it, with careful searching, these opportunities still exist for punters who know where to look.
How to Spot and Place an Arbitrage Bet Successfully
When an event approaches, bookmakers release odds based on their predictions of what will happen in the game or race. Typically, all bookmakers agree on the favorites, and the odds reflect that. However, since there are many bookmakers, there are also many opinions, and occasionally, their odds will differ, creating an arbitrage opportunity.
To take advantage of this, you need accounts with several different bookmakers and must calculate how much to bet on each outcome to ensure a guaranteed profit. The easiest way to compare odds and calculate stakes for arb betting is by using decimal odds. I recommend switching all your betting accounts to decimal odds when hunting for arbs.
Let’s look at a basic example of how to place an arbitrage bet, using a football cup final as an illustration.
Team A vs. Team B: An Example of a Football Cup Final
Bookmaker 1 favors Team A, the favorites to win, while Bookmaker 2 believes Team B has a strong chance, despite Team A’s favored status. The odds offered by the bookmakers differ enough to create an arbitrage opportunity:
- Bookmaker 1: Team A 1.50, Team B 2.50
- Bookmaker 2: Team A 1.727, Team B 2.00
At first glance, these odds may not look like an obvious arbitrage opportunity, but for experienced bettors, this difference is a signal that an arb is possible. To calculate the required stakes, divide 100 by the decimal odds available. This will show you how much to bet on each outcome to guarantee a profit. Make sure to always take the best odds available from each bookmaker.
- For Team A: 100 / 1.727 = £57.90
- For Team B: 100 / 2.50 = £40
In this scenario, you would place £57.90 on Team A with Bookmaker 2 and £40 on Team B with Bookmaker 1. If Team A wins, you win £100, and if Team B wins, you also win £100. Since the total you staked was £97.90, you’re guaranteed a £2.10 profit no matter the outcome. While this may seem like a small profit, if you place larger bets or find more arbs, these risk-free profits can quickly build up.
While this example shows a two-outcome market, which is ideal for arbitrage betting, more complex markets are possible. Regardless, the key to successful arbitrage betting is patience. Profits will come slowly, but they are guaranteed, which is why many people enjoy this method of betting.
Patience, Discipline, and a Keen Eye: The Traits of a Successful Arbitrage Bettor
One of the most significant challenges of arbitrage betting is the time and effort required to find potential opportunities. It’s a slow process that requires patience, discipline, and a good understanding of odds. While it’s tempting to jump on every opportunity you find, it’s crucial to calculate your bets carefully to avoid costly mistakes. Making an error in your calculations could turn a risk-free bet into a loss, which is the opposite of what you want.
Before committing significant sums to an arb bet, ensure you’re completely comfortable with the calculations. Arbitrage betting can become an expensive hobby if you don’t approach it carefully. This method is best suited for bettors who are willing to spend hours searching for opportunities and who are happy picking up small, steady profits over time.
It’s also essential to stay on top of bookmaker trends and odds changes. With many online odds comparison tools now available, it’s easier than ever to find differences between bookmakers. However, simply finding the odds isn’t enough—you need to know how to calculate the stakes and ensure you’re locking in a guaranteed profit.
Despite bookmakers tightening their rules, there are still plenty of opportunities to make money from arbitrage betting, especially with the influx of new online bookmakers. Using odds comparison tools and maintaining a patient, long-term approach will give you the best chance of success.
Final Thoughts on Arbitrage Betting
If you’re thinking about trying arbitrage betting, make sure you have a strong understanding of odds and are prepared for the long haul. Patience is key, and while the profits may seem small at first, they add up over time. Arbitrage betting is not a get-rich-quick scheme, but with the right approach, it can be a steady and profitable method of betting.
Be sure to know your odds, practice patience, and give it your best shot. With the right mindset and strategy, arbitrage betting can offer a unique and risk-free way to bet on your favorite sports.
