Betting School

Arbitrage Betting Explained

If you haven’t heard about arbitrage betting yet, you have a lot of catching up to do. After all, arbitrage betting is probably one of the most impressive concepts of scooping guaranteed profit. Namely, arbitrage betting is also known under the names of “miraclebet” or “surebet”. In other words, it makes it possible for bettors to gain profit regardless of the outcome of a sports event.

Naturally, arbitrage betting is not always simple to understand, plus it includes lots of calculations. Therefore, punters need to learn all about it before trying their luck at reaping its benefits. Generally speaking, arbitrage betting involves placing (usually) two opposing bets on one event, thus winning no matter what the outcome is. However, it cannot be used for all matches and demands that you do thorough research first.

 

Arbitrage Betting Explained

So, let’s explain what arbitrage betting is. Just like we mentioned before, arbing is placing opposing bets in order to win money regardless the final result. However, the opposing bets are always placed at different bookmakers as the basic concept of arbitrage betting is to take advantage of odds that are too high.

In other words, one bookmaker may have higher odds on Player A, while another betting site may have higher odds on Player B. This is the perfect opportunity for placing arbitrage bets and winning some cash along the way. Keep in mind, though, that arbitrage betting works the best when there are only two possible outcomes. So, you may want to stick to sports like tennis, rather than fan-favourite football.

 

How does Arbitrage Betting work?

Obviously, the best way to understand a concept is to see an actual example of how it works. Well, let’s see a scenario involving a tennis match between Roger Federer and Rafael Nadal.

Bookmaker A offers Roger Federer at odds of 2.20, while Bookmaker B offers Rafael Nadal at odds 2.20. This is your chance to shine at arbitrage betting! So, let’s say you bet £100 on each player; at Bookmaker A you bet on Federer and at Bookmaker B you back Nadal. Whatever happens during the game, you have secured a £20 profit. How? Well, in order to exemplify, we’ll say that Federer beats Nadal. So, you lose your £100 bet at Bookmaker B, but you win a total of £220 at Bookmaker A. In the end, you started the arbitrage betting adventure with £200 and got out of it with £220 i.e. scored £20.

Naturally, for the sake of the explanation, we used quite simple numbers. Nonetheless, arbitrage betting is not always as simple as our example. So, sometimes you’ll find complicated figures that require correct calculations. Thus, for example, you can encounter NBA odds for a game between Los Angeles and Sacramento looking like this: 1.20 for Los Angeles and 8.000 for Sacramento. This is when your calculating skills come into the picture.

 

How to Recognise Arbitrage Betting Opportunities?

Considering that there are hundreds of sports events on daily basis, it’s not always easy to find great opportunities. This is especially true due to the fact that the odds rarely are simple like the ones used in the abovementioned example. So, let’s learn how to recognise great arbitrage betting opportunities.

The general rule here is to find two implied probabilities whose summary is lower than 100%. What does that mean? Well, the probability of Federer winning at odds of 2.20 is 1 / 2.20 or 0.45 or 45%. Considering that Nadal was offered at the same odds, his probability of winning is identical 45%. When these two are summed up, you get a total of 90% i.e. a great arbitrage betting opportunity. The lower this figure is, the higher your profit opportunity is as well.

Calculating Stakes for Gaining Guaranteed Profits

Choosing the right stake amounts for your arbitrage betting bets is crucial for gaining guaranteed profits. This means that you’ll have to do thorough calculations before placing any bets. These calculations include a total of three fairly simple steps.

  1. You need to calculate the probabilities as explained before;
  2. You need to sum them up and get the total sum, which was 90% in the previous example;
  3. Finally, you should divide the separate probabilities with the sum of the probabilities. For example, you need to divide 45% by 90% and get 0.5.

So, once you have the final figures (in this case 0.5), you know the portion of the total bet amount that you need to place for each bet. As we learned above, with a total betting amount of £200, you need to place half that amount on each bet (200 / 0.5) in order to win the guaranteed profit of £20.

 

Disadvantages of Arbitrary Betting

Even though arbitrary betting can be quite profitable as it guarantees wins, there are still certain disadvantages to keeping in mind. First, the opportunities for arbitrary betting are pretty limited and require a fast reaction. Namely, such opportunities arise when bookmakers set wrong odds and last until the bookmaker notices the mistake. Therefore, you need to be both quick and lucky in order to grab such opportunities.

Moreover, the turnover of arbitrary betting is high, while the profits are usually low. Therefore, you will gain guaranteed profits, but don’t expect to become rich within a month. Finally, you can make the most out of arbitrary betting by placing high-stake bets. However, bookmakers don’t accept such bets immediately. They usually have to approve them first. So, there is always a possibility that one of the bets won’t be approved. And so your entire strategy will fall apart like a house of cards.

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