Arbitrage Sports Betting - Risk-Free Profit?
For a couple of months now I have been experimenting with the not new, but perhaps relatively unknown practice of Arbitrage Betting for profit. For those who are unaware of what this is - Arbitrage Betting involves betting on every outcome of a given event in such a way that you can guarantee yourself a profit on your total stake.
Obviously, one single bookmaker will not present the customer with such an opportunity as doing so would hinder their profit margins massively. However, with hundreds of bookmakers operating online, it is not uncommon for their odds to vary considerably on certain events. Should these odds vary enough, an arbitrage may occur. That is, an opportunity to back every outcome in such a way that a profit is guaranteed.
http://www.oddsportal.com/sure-bets/ is an invaluable resource for identifying these opportunities across a wide range of online bookies. Arbitrage opportunities are presented to you along with their overall expected ROI %. Using www.scalpulator.com to find the ratio in which you should invest your stake, you can quickly prepare to place your bets and lock in your profit.
Of course, making dozens of bookmaker accounts is not ideal and can get tricky. I advise using a chrome extension called Last Pass to safely store all your log in details under one master password. Furthermore this extension allows for auto-form-fillng, which saves you an incredible amount of time in setting up the accounts as you need them. Many bookmakers will also request various identification documents and proofs so ensure you have these documents scanned and saved on your desktop for easy-access.
So is it worth it?
The Pros/Rewards:
Good ROI%:
It is not uncommon for 5-7% arbitrage opportunities to arise daily. Clearly at these rates, arbitrage betting rewards our investment much more handsomely than a bank would!
Sign-up offers:
Many bookmakers offer excellent bonuses to new customers. Offers such as free matched bets up to €100 or enhanced prices are very common. Given that your bets will likely be rather large, you will get maximum value from these. Remember that you can use these free matched bets and price enhancements in your favour while working out your arbs so in effect, these offers are guaranteeing you free profit.
The Cons/Risks:
Not as risk-free as it may seem:
I learnt the hard way that traders can and will reject a bet if they feel the need to. Imagine placing a €500 bet on player A in a tennis match only for your corresponding €300 bet on player B to be rejected by your other bookmaker. This can be hedged by finding another bookie to take the second bet but may not be viable or profitable anymore. Other risks include ambiguous decisions in some sporting events such as when a tennis match is void due to player retiring etc.
Account closures/limitations:
Most bookmakers, with the notable exception of PinnacleSports, do not allow arbitrage betting and will limit or cancel your account should they suspect you are engaging in this. It is not illegal but it is completely within their rights to reject certain custom. From experience, I would advise against betting suspicious amount such as €422.87 or even €423. I recommend rounding to the nearest 10 or 5 euro/dollar/pound increment at the least to avoid being labelled an arb by traders.
So is it worth it?
I think it is a great way to make some quick cash online, particularly if you aren't an existing customer with most online bookies. However, be aware of the subtle risks you may be exposed to and make sure you keep track of where your money is. Most new arbitrage bettors have a fairly short lifetime of a couple of months before the increasing limitations and closures from certain bookies make it too difficult to continue to operate profitably. If you are going to give it a go, try not to arouse trader suspicion, do your relevant event research, prepare for the worst case scenarios and enjoy your risk-free* profit!