This has created an arbitrage opportunity. We’ll show you
some calculations you can use to highlight when an arb exists
later, but please just take our word for it at this stage. You
could make a guaranteed profit by betting on Murray with
"Bookmaker A" and Federer with "Bookmaker B".
It’s important to note at this stage that you have to work
out the optimal stakes when arbitrage betting. We’ll shortly
show you the necessary calculations for this too, but we’ll keep
it relatively simple for now and use some round figures. The two
bets you would want to make here are $107 on Murray at 1.91 and
$93 on Federer at 2.20, again for a total of $200 of wagered.
As you can see, you would make a profit here regardless of
which player wins. Although this is only a hypothetical example,
it should help you to understand just how arbitrage betting
works. We’ve already mentioned that similar opportunities do
occur for real, and we’ll now explain why.
Why Arbitrage Betting Is Possible
Arbitrage betting is only possible when the right
circumstances present themselves. The odds available on sporting
events regularly vary from one bookmaker to another, but there
needs to be a sufficient difference for an arb to exist. Such a
difference will typically occur for one of the following two
- Bookmakers taking differing views on the likely outcome of an
- Bookmakers adjusting their odds to create a balanced book.
The first reason is the one we referred to in our example
above. Bookmakers tend to set their initial odds based on their
views of what they think will happen in an event, so it is
perfectly possible that two bookmakers will set different odds
if they have different opinions about how an event is likely to
turn out. If their opinions are different enough that there is a
significant disparity in the odds that they offer, then an
arbitrage opportunity may well exist.
Although a bookmaker’s initial odds may reflect their views
about an event, they will subsequently adjust those odds based
on the wagers that they take. If they take a lot of wagers on
one particular outcome, they will almost certainly reduce the
odds on that outcome. At the same time they will increase the
odds on the other outcome (or outcomes). This helps them to
reduce their exposure to risk, and it can also lead to a notable
difference between the odds available at different bookmakers.
There are some other reasons why arbs occur, but the two
mentioned here are easily the most common.
How To Find Arbs
One of the biggest challenges you will face when using an
arbitrage betting strategy is actually finding the right
opportunities. Although they do occur reasonably frequently,
they don’t usually last very long. There are lots of bettors
looking for them so they generally get spotted very quickly. As
soon as a few bets have been placed to take advantage of an arb,
the chances are that the odds will have changed enough for the
opportunity to no longer exist.
You have three primary options when it comes to finding arbs.
These are as follows.
How I got banned from sports betting… – Arbitrage Betting Explained
Today we discuss how I managed to get banned from sports betting, but we also discuss how to implement arbitrage betting strategies to make you money!