In general, arbitrage is a financial practice of taking advantage of a price differential between two markets. The term is mainly applied to financial instruments but it can be also applied to betting markets.
At arbitrage betting, you are betting on both or all sides of an event in different bookmakers with a combination of bets to guarantee a profit, regardless of the outcome.
While arbs can be found manually, the best and easiest way to find bets is by using arbitrage betting software.
An arbitrage betting example
Below is a simple example to understand better the concept of arbitrage betting.
In a tennis match, a bookie1 is offering odds of 2.05 for the playerA to win. If we bet 50 euros and that player wins at your balance are added 102.5 euros.
A bookie2 is offering odds of 2.05 for the playerB to win. If we bet 50 euros and that player wins at our balance in bookie2 are added 102.5 euros.
In total at both bookies we have placed 100 euros but we have won 102.5 regardless of who has won the game.
That is in simple terms a 2.5% arbitrage betting opportunity.
Bankroll and earnings at arbitrage betting
It is not easy to make an estimation of how much you are going to make but it’s safe to say that a 10% monthly increase of the bankroll is easily achievable.
The bankroll depends a lot on how much you want to make from sports arbitrage and your risk aversion. A 2000 bank will make you around 200 a month. For some, it might seem ok while others may want more.
In my opinion, the minimum bankroll should be around 5000. That amount should be evenly split between the soft and the sharp bookmakers. A 5-10% of the bankroll should be kept aside. That money will be used to fund the bookies that are in a limited balance and to cover the arbitrage software subscriptions.
Arbitrage betting activities
By performing arbitrage betting you are exploiting bookie mistakes and make a profit from them. Bookmakers won’t like that so you will be restricted from betting with them after some winning bets.
When placing arb bets some serious risks are involved. You can read more about that here.
Arbitrage betting does not differ from regular betting, therefore is 100% legal. However, it’s your responsibility to verify that online sports gambling is legal in your country.
If you treat it as a real investment arbitrage betting can be profitable in the long run as it the only way to have guaranteed profits every time you bet. You can find more about arbitrage betting at this section of the website.
I hope that you have found my article useful. If so, feel free to share it or leave a comment below.