Arbitrage betting is a technique that allows bettors to lock in a profit by placing bets on all possible outcomes of a sports event using different bookmakers. The key idea behind arbitrage betting is that odds can differ between bookmakers due to various reasons like market inefficiencies, different risk tolerances, or slow updates to odds.
In a tennis match, one bookmaker might offer odds of +120 for Player A to win, while another bookmaker might offer odds of +115 for Player B to win. By betting on both players across these two bookmakers, you can guarantee a profit regardless of the outcome.
This is an 8.74% arbitrage opportunity. Let’s say you want to bet a total of $1000. No matter who wins, you’ll secure a guaranteed profit of $88, and here's how:
Bet $495 on Player A at +120 → Payout = $1089.00
Bet $506 on Player B at +115 → Payout = $1089.00
Profit = Payout - Total Stake
Profit = $1089.00 - $1001 = $88
In the real world, arbitrage opportunities often arise when bookmakers disagree on the probabilities of outcomes, especially in less popular or volatile markets. Sports with fast-changing odds or events with many unknown factors are prime spots for these opportunities.
- Identify differing odds across bookmakers: Use odds comparison tools from Spro or manually search for discrepancies.
- Bet on all outcomes: Ensure all possible outcomes of an event are covered, such as both teams in a moneyline bet or all sides of a point spread.
- Guarantee a profit: The calculated stakes ensure that no matter the result, a profit is locked in.
Cheers!
Spro Joe
Discord: Joe_SBA