When you hear something like “guaranteed profit,” you cannot help but roll your eyes. The first word you’d most likely associate with the concept is scam or fraud.
This is understandable, given that fraud costs consumers more than $5.8 billion. Almost 2.8 million consumers filed a fraud report in 2021 alone. Impostor scams were the most prevalent, while investment scams cost the most.
Yet arbitrage betting isn’t a scam. Instead, it’s a genius gambling strategy that anyone can learn and master.
Are you still doubting? Read on to learn more about arbitrage betting and how it works!
Arbitrage Betting Explained: What it is and How it Works
Arbitrage betting is a term for financial trading which means buying and selling commodities in different markets. In gambling, arbitrage betting means placing bets on all outcomes to guarantee a win. The bets made via arbitrage betting are often called sure bets or arbitrage bets.
Arb betting is a gambling technique used to take advantage of arbitrage opportunities. What are arbitrage opportunities, and how do they come about?
All betting companies (bookies) rely on information to set a price on the odds value of an outcome. The accuracy of their intel determines the efficiency of the market efficiency.
The market is efficient if everyone can access 100% accurate information and vice versa. But no market is 100% efficient, as traders and oddsmakers acquire information differently.
Even when they receive the same info simultaneously, there would still be a difference in interpreting this intel. This means that one or two betting companies might release a different odds value of a market than the rest.
This difference in odds value creates a variance or discrepancy. If a bettor notices this and places a wager on all the market outcomes, he’ll make money regardless of the result. Hence, differences in odds value give birth to a perfect arbing opportunity.
Is Arbitrage Betting Legal?
There are no laws that criminalize arb betting. However, bookmakers don’t take arb bettors kindly. In bookies’ eyes, arbing is a form of cheating, and consequences will follow when you’re caught.
Bookmakers might restrict your betting accounts. They may place a maximum limit on your stakes, suspend them, or even close it. You may even find your name on the blocklist, which means you can never bet on their sportsbook again.
Even if you’re not caught, there’s a risk that you might miss out on the marginal expectation. This is because bookies have experts, enabling them to notice discrepancies. Should they find one, they’ll disable the bet slip before you can place a bet.
When Should I Use Arbitrage Betting?
Arbitrage betting is best used for gambling scenarios where there are fewer markets. Remember that arbitrage gambling entails betting on all outcomes. It becomes impractical to put wages on ten or more different outcomes.
Hence, as much as possible, target sports or game events. These events have fewer markets. Thus, it doesn’t pose a heavy investment burden.
Yet, while arbing is something you can do in any sport, it doesn’t mean you should. The more niched the event you placed your bet at, the more it will stand out to bookies.
It makes more sense to do arbitrage betting on the most popular gambling sports—for instance, football, tennis, soccer, basketball, and horse racing.
Aside from these, e-sports are also gaining popularity. Popular esports franchises include Dota, League of Legends, Counter-Strike, and StarCraft.
Valuable Tips for Arbitrage Betting
Most argue that there is no losing in arbitrage sports betting. However, since the technique has high profitability, it’s the most monitored gambling activity. Hence, bettors need to tread lightly when using this gambling technique.
For one, avoiding the surveillance of bookies includes avoiding placing large stakes. It’s only natural to wager a significant amount of money to make a decent profit margin.
Yet big stakes stand out the most to bookies. This is especially true if you usually bet on a smaller scale. So we recommend you stay within your stakes’ normal growth area.
For example, your first bet was $15, and you won twice. It’s common for bettors to grow their stakes arithmetically with their first stake as a basis.
In this case, the most normal growth would be double the money or even triple it to $45. Any increase higher than that would be suspicious.
You can also try switching things up by making steady small-scale bets. While this can also flag bookmakers, it takes more time to notice. Moreover, it requires more investigation for bookmakers, which buys you more time.
Use Multiple Betting Accounts
To start placing Sure Bets, you’d need to create multiple betting accounts first, one for every trusted bookmaker you know.
This makes it difficult for bookmakers to determine whether you’re arbing. Moreover, staying loyal to the same sportsbook limits arbitrage opportunities.
Take Advantage of Digital Technologies
It’s essential to find a competent odds comparison site. It’s an excellent tool for spotting any noticeable change in odds value.
It’s also best to look for a platform that offers arbitrage formulae. This will make it easier to calculate the cost of choosing a betting outcome and how much profit you can get from that choice.
Cover Your Tracks by Placing Mug Bets
The best way to cover sports betting arbitrage is to place mug bets. Mug bets are losing bets deliberately placed by bettors to break their winning streak record. Consistent wins will surely alert the bookies; hence, back your favorite soccer team now and then, even if you know they’d lose.
Make sure that you’re discreet and subtle when you place mug bets. This ensures you’re not throwing away too much money and keeps bookmakers from knowing what you’re up to. The idea is to look like an inexperienced bettor naively reinvesting on bets that won’t pay off.
Start Your Winning Streak Today!
Arbitrage is not for you if you’re hoping to cash in hundreds or more in a short period. We mentioned that arbitrage betting is a sure bet, but we never said you’d make it big in a short period.
Arbitrage betting is a grind-it-out gambling technique. The expected profit ranges between two to three percent.
It’s not possible to make a large pile of cash without the bookies getting on your tail. However, if you embrace arb betting as a marathon and not a 100-meter dash, you can build a bountiful cash stock in a year or two.
Did you have fun reading? Check out the rest of our website for more quick raps like this!