There are many forms of online gambling but one of the regular questions we are asked is the following: What is Arbitrage Betting? For many online gamblers, arbitrage sports betting is something you may have heard of before but not understood. In this arbitrage betting explained article, we will break down arb betting so it is easy to understand and follow in practice.
Our arbitrage betting guide is split into various sections, beginning with the simple question, what is arbitrage betting ?
In basic terms, arbitrage betting is betting on each of the possible outcomes to guarantee a profit, regardless of the result. You may find arb betting is also referred to as sure bets or sure wins because when done properly, you are guaranteed to make a profit. At this stage, arb betting probably sounds too good to be true but you can find out exactly how to make a guaranteed profit from sports betting by following this arbitrage betting guide .
To begin this arbitrage betting tutorial , let's take a closer look at arbing using an example.
Arbitrage betting involves betting at one bookmaker at a high price and betting against the outcome on an exchange at a lower price. So, we are using the discrepancy between the odds offered at a bookmaker and a betting exchange to make a profit and this is the arb .
To complete successful surebets using this method, you can use an arb betting calculator and we will come to that in more detail shortly. For now, all you need to know is that by using an arbitrage betting calculator , you can easily work out how much you must bet against (lay) the bookmaker bet and how much profit you will make.
Let's take a tennis match as an example. Novak Djokovic is available at 1.55 to win while Roger Federer is on offer 2.4 to win, with both sets of odds at the bookmaker. However, you notice at the betting exchange Federer is 2.1 not to win and combined with the odds of 2.4 to win at the bookmaker, the implied probability for the combined bets is 89.29%.
To keep things simple, let's say you are going to bet £100 on Federer to win at the bookmaker at odds of 2.4. You must then calculate the amount you need to lay at the betting exchange to ensure you make a profit regardless of the outcome of the match. In this arbitrage betting example, you would need to place a £115.38 lay bet on Federer to win at odds of 2.1 at the betting exchange. If Federer wins, you stand to make a profit of £13.08, if Federer loses you will make £13.07 profit, so there is nothing in it.
There are plenty of arbitrage betting sites out there which you can use to find arbitrage betting tips . However, you should learn how to calculate arbitrage bets yourself. That begins with using equations or an arbing calculator . Once you do it, you are ready to place a bet, which can turn out to be even more profitable for you if you enter a special bonus code, such as Betinia promocode, while signing in on a website.
2. How to Calculate Sure Bets?
Using the same arbitrage sports betting example as above, you can calculate the mathematics yourself to work out the guaranteed profit from both outcomes and this is displayed below.
To calculate your lay stake on Federer, based on the £100 back bet at the bookmaker, you must use the following equation:
(back price x back stake) / (current lay odds - exchange commission)
In our example, that would be: (2.4 * 100) / (2.1 - 0.02) = £115.38
You are now in a position to calculate the profit you would make from a win at either the bookmaker or exchange.
A win at the bookmaker: Profit = (back odds – 1) * back stake – (lay odds -1) * lay stake
In our example, that would be: Profit = (2.4 - 1) * 100 - (2.1 -1) * 115.38 = £13.08
A win at the exchange: Profit = (lay stake * (1 - commission)) - bookmaker stake
In our example, that would be: Profit = (115.38* (1-0.02)) -100 = £13.07
So, with the mathematical equations above you can work out the lay stake required and expected profit from each outcome using the initial stake at the bookmaker. Using these calculations together with, for instance, Bet365 promotion code, you can increase your profits significantly!
3. Arbitrage Betting Calculator
Fortunately, if you do not want to do the math yourself there is a quicker option. An arb betting calculator can be used to input the back stake at the bookmaker and the odds plus the lay odds and commission from the exchange. This will give you the amount you must lay at the exchange and the expected profit from the bet.
Using an arbitrage betting calculator will save you a lot of time and at many websites that offer a calculator; you will also find an arbitrage betting finder . This displays the best sporting events for the day in terms of arbitrage betting and saves you having to search and work them out for yourself. If you want to see if it really works, make sure to use one of our promotion codes, for example 1XBET bonus code for customers to get some extra money.
Arb betting can still be risky because bookmakers are on the lookout for people using the system, despite the fact it is perfectly legal. The bookies need to make a profit and if they believe you are the one making a regular profit, you may have your account restricted or closed.
5. Pros and Cons of Arbitrage Betting
Tends to lead to small profits
Easy to work out with a calculator
Bookmaker accounts can be restricted or closed
Plenty of bets to be made each day
Can require a large bankroll
Now, when you already know the answer to the question: what is arbitrage betting, we recommend you keep a record of your arbitrage betting activity using a spreadsheet and in doing so you will be able to work out your full profit over time.