Sports Betting

What is Arbitrage Betting, How to Find and Identify It

If you are looking for a way to win, then you should know what is arbitrage betting. This type of betting is the best chance to make at least some money in sports betting with the minimal risk. We’ll go over the basics of arbitrage betting here. You will see how it works and how to spot the opportunities to win below. 

Arbitrage Betting Definition

What is Arbitrage Betting Actually?

For those of you who are wondering what is arbitrage betting, it is also known as “arbs betting”, “sure bets”, or “miracle bets and sure wins”. It is a technique where you make bets with different online betting companies to cover all the results of a sporting event to guarantee yourself winning. 

An arb comes when betting companies take an alternative view on the results of a certain sporting event, meaning that they will offer different odds to reflect the probabilities. Should you find a case where the bookmakers disagree by a big enough variance, you can lock in winning regardless of which result win. 

❗Important:

Because of how the bookmakers set their price, the bettor will be guaranteed to lose money if they bet on each result within an event at the similar bookmaker. 

For instance, backing the favorite to make a profit, the underdog to win and the draw in a soccer match will ensure the bookmaker rubs their hands with glee as they will take your money. 

This is because the betting company offers an overround in their pricing that gives them an edge as it will replace the true odds of every result with their own odds. 

However, comparing the odds for the similar sport event from the different betting companies can present a chance as the bookmakers have an alternative view, or may have created an error.

It doesn’t mean that a favorite with one bookmaker becomes the underdog at another, more that there will be differences in the odds that are no offer. That what is arbitrage betting.

How Does Arbitrage Betting Work?

You may already know the concept of what is arbitrage betting and wonder how it works exactly. This term sounds pretty complex, however, can be broken down into simpler terms. While there are some different ways to place arbitrage chances in betting, they all will come down to one concept. 

Arbitrage is when you can make two bets on a similar sporting event and guarantee a win regardless of the result. This is done by placing odds on both sides of the event that allow this. You will have to place a bet on one of the online sports betting Malaysia.

One reason is that it is pretty uncommon that a sportsbook will allow an in-house arbitrage chance. This will guarantee a loss for the house. Moreover, it will be easy to spot an arbitrage bettor who is taking advantage of these types of chances at one sportsbook. 

You will likely be limited or banned by the bookmaker very quickly. We bet you understand more the concept of what is arbitrage betting.

How to Find Arbitrage Betting?

Now that you know what is arbitrage betting, let us show you how to find it using an example.

For instance, the bookmaker 1 prices a Tyson Fury win at decimal odds of 1.48 (67.6% indicated probability) whereas the bookmaker 2 can think he is even more likely to win and offer odds of 1.36 (73.5% indicated probability). 

As a result, the price on his opponent will also be changed between the two bookmakers and mean that backing the underdog can see a range between 2.75 (36.4% chance) and 3.25 (30.8% chance). 

If the numbers come correctly, you can find that backing Mayweather with the bookmaker 1 and his opponent with the bookmaker 2 allowed to automatically put you into the green no matter who won the out. 

From the example of what is arbitrage betting above, usually there is only a slight difference between the prices set by the bookmakers. It means that you will need to bet a lot of money to place arbing worthwhile, as arbitrage bets commonly range between 1% and 10% winning.

This can mean that a MYR 1000 bet will return as little as MYR 10 and as much as MYR 100, which might not be worth the vast amounts of time taken to identify the arbitrage in the first place.

How to Identify the Arbitrage Betting Chances?

Software and bots can help you identify opportunities of what is arbitrage betting. However, we will look at how to identify it using manual steps, which is relatively easy yet time consuming. The process is as follows:

  • Using an odds comparison website like Oddschecker, find a sport event that offers two results
  • Find the highest odds that available for every result from two different bookmakers
  • Calculate whether the odds represent an arbitrage betting chance
  • If so, then you can calculate the individual stakes you must bet with at every bookmaker
  • Place every of the bets

The Risks of Arbitrage Betting

It is as near to a “sure bet” as you can find in sports betting when it comes to what is arbitrage betting in its most efficient and pure form. Still, all gambling will involve some risk. Let’s take a look at some of disadvantages of arbitrage betting:

1. Making Calculation Mistakes

Doing an arbitrage calculation is not difficult from a mathematical standpoint. In addition, the betting calculators are available to help. Still, it is possible that bettors can make mistakes in calculating an arbitrage chance. This can lead you to place bets that can only result in a loss. 

2. Bets Cancellation

One way that arbitrage betting can totally fall is with a bet cancellation. It doesn’t happen all that often, but can. A good example will be when a beginning bettor is scratched in favor of another. The bookmaker may void your bet. 

3. Being Limited or Even Banned

Being limited or even banned by an online sportsbook is the biggest difficulty you must cross in an attempt to be a significantly profitable bettor. This is why experienced bettors use syndicated people placing the smaller bets to mask their advantage at sportsbooks. 

Final Words

As described above, we have talked about what is arbitrage betting. However, this is not the only arbing chance, it is also possible to do this via betting exchanges and in the betting shops. You can follow how to find and identify arbitrage betting to help you make a profit in sports betting. 

Admin

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