What is arbitrage in Sports (AKA Sports arbing)?
Sports arbitrage, also known as sports arbing, is a betting strategy that involves placing bets on all possible outcomes of a sports event to guarantee a profit. This strategy takes advantage of discrepancies in odds offered by different bookmakers, which allows a bettor to bet on all outcomes of an event and still make a profit regardless of the outcome.
In this beginner’s guide to sports betting arbitrage, we’ll explore the intricacies of this betting strategy and how you can profit from it.
How does sports arbing make profit?
Arbitrage betting is all about finding odds discrepancies between different bookmakers. These discrepancies can arise due to a variety of reasons, such as different bookmakers having different opinions on the likelihood of certain outcomes, or simply because of errors in setting the odds.
By placing bets on all possible outcomes of a sports event, a bettor can guarantee a profit regardless of the outcome. This is achieved by calculating the optimal stakes for each bet, which takes into account the different odds offered by the bookmakers.
What different arbitrages do you have in sport betting?
There are several types of arbitrage in sports betting, each with its own unique approach and level of risk. Some of the most common types of arbitrage are:
- Pre-match arbitrage – This involves placing bets on all possible outcomes of a sports event before it starts.
- In-play arbitrage – This involves placing bets on all possible outcomes of a sports event while it is in progress.
- Cross-market arbitrage – This involves placing bets on all possible outcomes of a sports event across different markets, such as a win/draw/loss market and an over/under market.
Do you pay taxes on sports arbing?
The question of whether or not you pay taxes on arbitrage profits depends on the laws of your country. In some countries, arbitrage profits are considered taxable income, while in others they are not.
It is important to consult with a tax professional in your area to understand the tax implications of sports arbitrage betting.
What are the disadvantages of sports arbing?
While sports arbitrage betting can be a profitable strategy, it also comes with its own set of disadvantages. Some of the main disadvantages of arbitrage betting include:
- Limited profit margins – The profit margins in arbitrage betting are typically small, which means that you need to place large bets in order to make a significant profit.
- Account restrictions – Bookmakers are aware of arbitrage betting and often restrict the accounts of bettors who engage in this strategy.
- Time-consuming – Finding suitable arbitrage opportunities can be time-consuming and requires constant monitoring of odds and markets.
Known advantages of sports arbing
Despite the disadvantages, there are several advantages to sports arbitrage betting. Some of the main advantages include:
- Low-risk – Sports arbitrage betting carries very little risk, as you are guaranteed a profit regardless of the outcome of the event.
- No knowledge of sports required – You do not need any knowledge of sports to engage in arbitrage betting, as the strategy is based solely on odds and mathematics.
- Profitable over the long term – While the profit margins in arbitrage betting may be small, they can add up over time, especially for bettors who are able to find and take advantage of many opportunities.
A couple of samples of arbitrage betting
To give you a better understanding of how arbitrage betting works in practice, here are a couple of samples:
Let’s dive into some samples of arbitrage betting. Keep in mind that these are just examples, and you’ll need to do your own research to find current opportunities.
Sample 1: Tennis match
Let’s say there’s a tennis match between Rafael Nadal and Novak Djokovic. Bookmaker A is offering odds of 2.5 on Nadal, while Bookmaker B is offering odds of 2.5 on Djokovic. By placing a £100 bet on Nadal at Bookmaker A and a £100 bet on Djokovic at Bookmaker B, you can guarantee a profit no matter who wins the match.
If Nadal wins, you’ll receive a payout of £250 from Bookmaker A, while losing your £100 bet on Djokovic at Bookmaker B. But if Djokovic wins, you’ll receive a payout of £250 from Bookmaker B, while losing your £100 bet on Nadal at Bookmaker A. In either case, you’ve guaranteed a profit of £50.
Sample 2: Football game
In a football game, Bookmaker A is offering odds of 2.0 on a home win, while Bookmaker B is offering odds of 2.2 on an away win. By placing a £100 bet on the home team at Bookmaker A and a £91.67 bet on the away team at Bookmaker B, you can guarantee a profit no matter who wins the game.
If the home team wins, you’ll receive a payout of £200 from Bookmaker A, while losing your £91.67 bet on the away team at Bookmaker B. But if the away team wins, you’ll receive a payout of £201.67 from Bookmaker B, while losing your £100 bet on the home team at Bookmaker A. In either case, you’ve guaranteed a profit of £1.67.
These are just a couple of examples, but you can find arbitrage opportunities in many different sports and events. Keep in mind that the opportunities may not always be as lucrative as these examples, and that you’ll need to do your own research to find current opportunities.
In conclusion, arbitrage betting can be a lucrative way to make a profit from sports betting. By taking advantage of differences in odds between different bookmakers, you can guarantee a profit no matter who wins. However, there are also some disadvantages to consider, such as the need for a significant amount of capital and the potential for bookmakers to restrict or ban your account. With careful research and a solid understanding of the risks and rewards, arbitrage betting can be a valuable addition to your sports betting strategy.
Calculating Arbitrage Profit
Once you’ve identified a potential arbitrage opportunity, the next step is to calculate the potential profit. There are several online arbitrage calculators available that can help you do this quickly and accurately.
The basic formula for calculating arbitrage profit is:
Profit = (Stake/Total odds) – Stake
For example, let’s say you find a tennis match where Bookmaker A is offering odds of 2.50 on Player A to win, and Bookmaker B is offering odds of 1.80 on Player B to win. You decide to bet $100 on Player A at Bookmaker A and $143 on Player B at Bookmaker B, for a total stake of $243.
Using the formula above, you can calculate your potential profit:
Profit = ($100/2.50 + $143/1.80) – $243 Profit = $100 – $243 Profit = -$143
In this case, the result is negative, indicating that there is no arbitrage opportunity. If the result had been positive, you would have found an arbitrage opportunity.
Sports betting arbitrage (or sports arbing) can be a profitable strategy for experienced bettors who are willing to put in the time and effort to find and exploit market inefficiencies. However, it’s important to remember that arbitrage opportunities are rare and fleeting, and it’s not a guaranteed path to riches.
Arbitrage betting also comes with potential risks, such as the possibility of account restrictions or closure, and the need to manage your bankroll carefully to avoid being overexposed to any one bet.
If you’re interested in trying sports arbing, start by familiarizing yourself with the different types of arbitrages, and practice using an arbitrage calculator to calculate potential profits. With patience, persistence, and a bit of luck, you may be able to find profitable opportunities and make some money from sports betting arbitrage.
If you want to know more about arbing/arbitrage we recommend you our guide: “7 Easy Steps to Mastering Sports Betting Arbitrage: A Beginner’s Guide to Profitable Wagering”