Arbitrage betting, also known as arbing or sure betting, is a popular betting strategy that guarantees a profit regardless of the outcome of a sports event.
This guide will provide a detailed explanation of arbitrage betting for beginners, with examples from popular Indian sports and teams.
We will cover the concept, calculations, and various techniques to help you get started with this profitable betting method.
What is Arbitrage Betting?
Arbitrage betting is a technique used by bettors like you to take advantage of different odds offered by online betting sites for the same event. By placing bets on all possible outcomes of a sporting event, you can ensure a profit regardless of the result.
Arbitrage opportunities arise when betting sites have different opinions on the probabilities of outcomes or make errors in their odds calculations.
Arbitrage betting involves placing bets on all possible outcomes of a sports event with different bookmakers to guarantee a profit.
The key is to find discrepancies in the odds offered by different bookmakers, which can be achieved through research, odds comparison websites, or specialized arbitrage betting software.
Advantages of Arbing
While Arbitrage betting comes with many advantages and certain risks, here are some of the greatest advantages of using this betting strategy.
- Guaranteed Profit: The primary advantage of arbitrage betting is that it guarantees you a profit, regardless of the outcome of the sporting event.
- Reduced Risk: Unlike traditional betting, where the outcome of a single bet is uncertain, arbitrage betting minimises risk by placing bets on all possible results.
- No Expert Knowledge Required: Arbitrage betting does not require a deep understanding of the sport or event you are putting your stake on, as it focuses on exploiting differences in odds rather than predicting outcomes.
Calculating Arbitrage Opportunities
To get started with arbitrage betting, it is essential for you to understand the calculations involved in identifying arbitrage opportunities and determining the appropriate bet amounts.
To find an arbitrage opportunity, you have to figure out the chances of each outcome and the overall chances according to the market. If the total chances are less than 100%, then you've found an arbitrage opportunity.
To calculate the implied probability of an outcome, use the following formula:
- Implied Probability = (1 / Decimal Odds) x 100
To calculate the total implied probability, simply add the implied probabilities of all outcomes.
For example, in a cricket match between India and England, the odds for India to win are 1.80, and the odds for England to win are 2.25. The implied probabilities can be calculated as follows:
- India: (1 / 1.80) x 100 = 55.56%
- England: (1 / 2.25) x 100 = 44.44%
- Total Implied Probability: 55.56% + 44.44% = 100%
In this case, there is no arbitrage opportunity, as the total implied probability equals 100%. Remember that the probability has to be less than 100% in order for an arbitrage opportunity to occur.
Calculating Bet Amounts
Once you have identified an arbitrage opportunity, you need to determine the appropriate bet amounts to ensure a profit. This is one of the most important things while you are placing your bets.
Luckily, there is a relatively easy formula to calculate how much money you have to bet on each outcome in order to make a guaranteed profit.
To calculate the individual bet amounts, use the following formula:
- Individual Bet Amount = (Total Investment x Individual Implied Probability) / Total Implied Probability
For example, if you have found an arbitrage opportunity in a tennis match between Novak Djokovic and Jannik Sinner, and you want to stake ₹5000, the bet amounts would be calculated as follows:
- Novak Djokovic: (₹5000 x 84.746%) / 99.032% = ₹4287.67
- Jannik Sinner: (₹5000 x 14.286%) / 99.032% = ₹712.33
Types of Arbitrage Betting
There are several types of arbitrage betting, including traditional arbing, betting exchanges, and sharbing. Let’s explain each type of betting in detail.
Traditional Arbing
Traditional arbing involves placing bets with different bookmakers to exploit discrepancies in their odds. This method requires research and the use of odds comparison websites or software to identify arbitrage opportunities.
You will also need to create accounts at multiple online bookmakers in order for this strategy to work. Make sure to register with a couple of bookmakers to be able to grab arbing opportunities when they appear.
Betting Exchanges
Betting exchanges, such as EKbet, allow bettors like you to place bets against each other rather than against a bookmaker. This creates opportunities for arbitrage betting by backing and laying bets on the same event, ensuring a profit regardless of the outcome.
However, it is essential to factor in the commission charged by the betting exchange when calculating potential profits.
Sharbing
Sharbing, or shop arbing, is the practice of placing bets with online bookmakers and betting shops to exploit differences in their odds. Betting shops are often slower to react to price changes than online bookmakers, creating arbitrage opportunities for you as you can act quicker than them.
Best Practices
To ensure success in arbitrage betting, it is essential to follow certain best practices. These types of practices involve using odds comparison software and keeping track of records of your wagers.
Odds comparison websites can help you identify arbitrage opportunities by providing a comprehensive overview of the odds offered by different bookmakers for a specific event.
All our football and cricket predictions include an odds comparison between 3 bookmakers. You can check out the latest predictions to look for arbing opportunities.
Additionally, specialized arbitrage betting software can automate the process of finding and calculating arbitrage opportunities, greatly simplifying the process and increasing efficiency.
Maintaining a record of your arbitrage bets is crucial for tracking your performance and identifying areas for improvement. This can also help you manage your betting bankroll and ensure that you are consistently making a profit over time.
Risks and Challenges
While arbitrage betting can be profitable, it is not without its risks and challenges. We have listed some of the most important risks and challenges you can face below.
- Human error: Mistakes in calculations or placing the wrong bets can lead to losses. It is essential to double-check your calculations and use reliable tools to minimize human error.
- Changing odds: Odds can change rapidly, and an arbitrage opportunity may disappear before you can place all your bets. To counter this, act quickly and consider using tools that can automatically place bets when an opportunity arises.
- Limited opportunities: Arbitrage opportunities can be scarce, and competition among arbers can be fierce. To succeed in arbitrage betting, you must be diligent in your research and prepared to act quickly when opportunities arise.
Conclusion
Arbitrage betting is a profitable and low-risk betting strategy that can provide consistent returns to you.
By understanding the principles, calculations, and techniques involved, you can begin to exploit differences in odds offered by bookmakers and guarantee profits regardless of the outcome of a sports event.
Make sure to sign up with plenty of online bookmakers and exchanges in order to not miss out on arbitrage opportunities.
