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Arbitrage or arbing or scalping as it is often called is using the difference in markets in such a way as to guarantee a profit whatever the outcome of an event. In sports betting arbitrage you are taking advantage of bookmakers differing opinions and prices about the outcome of a sports event or contest to guarantee a risk free profit.
Here is an example
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Team A
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Team B
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Bookmaker 1
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1.25
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3.9
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Bookmaker 2
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1.43
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2.85
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You bet £100 with book maker 2 on Team A at 1.43 and £36.67 (100 x 1.43 / 3.9) with bookmaker 1 on Team B at 3.9
If Team A wins you collect 100 x 1.43 = £143
If Team B wins you collect 36.67 x 3.9 = £143
So whatever the outcome you’ll collect £143 from a total stake of £136.67 giving you a risk free profit of £6.33 which is a healthy 4.6% return on your investment.
Arbitrage opportunities like the above example happen on a daily basis but they usually disappear quickly so arbers have to act fast to take advantage.
In theory sports arbitrage is very interesting and can seem like an easy way to make money but there are some drawbacks and risks. These include prices changing before you can get both bets on, bookmakers limiting your stakes, cancelling bets or even closing your account and human error when placing bets.
Risks aside though, it is possible to make a nice income from sports arbitrage providing you have sufficient capital, enough time and the appropriate tools. |
