What is ‘Arbitrage’?
Arbitrage is a form of gambling
which guarantees making money by betting on both sides of the same market. It involves using large numbers of money as often the margins you can profit on are quite small. In gambling slang, it is often referred to as ‘an arb’ or ‘arbing’. Also see Arbitrage Betting
Arbitrage betting can take place in sports betting
markets, occasionally on financial markets and in casinos. The opportunity for an arb occurs when two or more bookmakers or odds
layers disagree on the chances of the outcome of a match or an event and offer markedly different odds on the participants to win.The better arbing opportunities come in markets where there are only two outcomes, such as a tennis match or a baseball match, but they can often occur in markets which aren’t the most obvious. Sometimes the better potential lies in lesser markets like how many runs will be scored in the match or how many games there will be.The bigger the differential in the odds, the more money can be made. A level betting market has an overround of 100%. The bigger the percentage, the more money bookmakers will make on that book; but if the overround is less than 100%, that means an arb opportunity is there.In order to take advantage of an arbitrage opportunity, you need to have a number of betting accounts funded as you will be placing bets at two different bookmakers
. Most of the arbing offers work out to about 1% and sometimes less than that, so to make significant money you need to wager big numbers.Most sportsbooks these days offer price boosts on various events which is where the best arb chances occur, but a word of warning for taking advantage of these – most boosts come with a stake
limit so make sure you check the limit before you bet.Although the profit is guaranteed, arbitrage betting is frowned upon by bookmakers and any punter who is suspected of doing this or found guilty of it is likely to have their accounts restricted or even closed. Betting exchanges have made arbing easier to get away with, however.The rise of odds comparison sites has generally lessened the amount of arbitrage opportunities that are priced up.